Plumeri was CEO of North America at Citi which was the best performing stock in the 1990s and now is a senior executive at KRR, having turned around Willis and First Data. In this 2019 talk he shares eight of his first principles of value creation.
Some takeaways:
- Viking effect of burning boats, getting everyone all-in
- Delegate authority but never responsibility
- Go “play in traffic” – go make things happen
- Never be in a commodity business
- Price is an issue in the absence of value
This reminds of the classic note from Peter Lynch (Fidelity) and Howard Marks (Oaktree Capital): The reality is that most analysts have never been operators before, and most operators aren’t typically great capital allocators and as such, it’s uncommon to have a team with both traits so in general, it’s good to have holistic investment perspective.
There are only a few publicly traded companies in the world that have such characteristics such as @Upland Software and @LVMH etc.
Link: Joe-Plumeri
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