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The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success Hardcover – October 23, 2012
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#1 on Warren Buffett’s Recommended Reading List, Berkshire Hathaway Annual Shareholder Letter, 2012
Named one of 19 Books Billionaire Charlie Munger Thinks You Should Read” in Business Insider.
A book that details the extraordinary success of CEOs who took a radically different approach to corporate management.” Charlie Munger, Vice-Chairman of Berkshire Hathaway Corporation
Thorndike explores the importance of thoughtful capital allocation through the stories of eight successful CEOs. A good read for any business leader but especially those willing to chart their own course.” Michael Dell, chairman of the board of directors and chief executive officer of Dell
What makes a successful CEO? Most people call to mind a familiar definition: a seasoned manager with deep industry expertise.” Others might point to the qualities of today’s so-called celebrity CEOscharisma, virtuoso communication skills, and a confident management style. But what really matters when you run an organization? What is the hallmark of exceptional CEO performance? Quite simply, it is the returns for the shareholders of that company over the long term.
In this refreshing, counterintuitive book, author Will Thorndike brings to bear the analytical wisdom of a successful career in investing, closely evaluating the performance of companies and their leaders. You will meet eight individualistic CEOs whose firms’ average returns outperformed the S&P 500 by a factor of twentyin other words, an investment of $10,000 with each of these CEOs, on average, would have been worth over $1.5 million twenty-five years later. You may not know all their names, but you will recognize their companies: General Cinema, Ralston Purina, The Washington Post Company, Berkshire Hathaway, General Dynamics, Capital Cities Broadcasting, TCI, and Teledyne. In The Outsiders, you’ll learn the traits and methodsstriking for their consistency and relentless rationalitythat helped these unique leaders achieve such exceptional performance.
Humble, unassuming, and often frugal, these outsiders” shunned Wall Street and the press, and shied away from the hottest new management trends. Instead, they shared specific traits that put them and the companies they led on winning trajectories: a laser-sharp focus on per share value as opposed to earnings or sales growth; an exceptional talent for allocating capital and human resources; and the belief that cash flow, not reported earnings, determines a company’s long-term value.
Drawing on years of research and experience, Thorndike tells eye-opening stories, extracting lessons and revealing a compelling alternative model for anyone interested in leading a company or investing in oneand reaping extraordinary returns.
- Print length272 pages
- LanguageEnglish
- PublisherHarvard Business Review Press
- Publication dateOctober 23, 2012
- Dimensions7.76 x 5.08 x 0.7 inches
- ISBN-101422162672
- ISBN-13978-1422162675
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The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

Editorial Reviews
Review
One of the Most Important Business Books in America.” Forbes
This book completely changed my business life... If you want to build a company that generates incredible returns, this book should be on your required reading list.” Dave Morin, Founder & Partner, Slow Ventures as seen on Medium
easily the best investment or business book published in the past few years ” Brendan Matthews, Motley Fool
an important insider’s perspective, an unapologetic glimpse into the hard-core investor view of what success looks like.” Forbes.com
"It focuses on the less sexy but equally important job of a CEOcapital allocation." Mebane Faber, CIO and portfolio manager at Cambria Investment Management (Business Insider’s Wall Street Reading List for 2014)
Thorndike wants to give any manager or business owner the confidence to occasionally do things differently from your peers to make the most of the cards they’re dealt and to delight their shareholders.” Financial Times
[Thorndike's] findings turn received wisdom about CEO success on its head. It’s not revenue and profit growth, but the increase in a company’s per share value that offers the ultimate barometer of a CEO’s greatness Thorndike may have discovered an alchemic formula for CEO success. But will existing CEOs listen?” economia
Thorndike has done extensive research on each of the people features, and their success story makes for an inspiring and most definitely, compelling read.” The Hindu (India)
An extremely instructive read well worth the effort.” Business Traveller magazine
This is an eminently readable volume with plenty of lessons.” The Irish Times
ADVANCE PRAISE for The Outsiders:
Jim Collins, author, Good to Great; coauthor, Built to Last and Great by Choice
Will Thorndike dissects an eclectic and fascinating group of business leaders who created exceptional long-term value. He takes the unique angle of examining great CEOs as chief allocators of capital, so disciplined in their empirical rationality as to be nonconformists in the very best sense. Thorndike’s take is fresh, smart, and provocativeand well worth learning.”
Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management; author, The Success Equation
Will Thorndike provides management principles that are as rock solid as they are rare and shares the engaging stories of eight CEOs who lived by them. The ideas in this book provide both executives and investors with the North Star of value. Follow it and prosper.”
Mason Hawkins, Chairman and CEO, Southeastern Asset Management
The Outsiders is a must-read for leadersand aspiring leadersstriving to become exceptional CEOs, and for investors interested in partnering with exceptional stewards of corporate capital.”
Walter Kiechel, author, The Lords of Strategy
If creating wealth for shareholders is the ultimate test of a CEO, meet the champions. The names of these outsiders’ may come as a surprise, but you will learn valuable strategic lessons from their iconoclastic ways.”
Thomas A. Russo, Partner, Gardner Russo & Gardner
The Outsiders celebrates leaders who kept their firms focused, rewarded their management despite long periods of inactivity, andby keeping their companies out of troublefound themselves free to pounce when compelling opportunities arose. A highly effective playbook for excellence.”
About the Author
Product details
- Publisher : Harvard Business Review Press
- Publication date : October 23, 2012
- Language : English
- Print length : 272 pages
- ISBN-10 : 1422162672
- ISBN-13 : 978-1422162675
- Item Weight : 15.8 ounces
- Dimensions : 7.76 x 5.08 x 0.7 inches
- Best Sellers Rank: #8,673 in Books (See Top 100 in Books)
- #9 in Strategic Business Planning
- #12 in Systems & Planning
- #99 in Leadership & Motivation
- Customer Reviews:
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Learn more how customers reviews work on AmazonCustomers say
Customers find the book readable and well-written, with an excellent look. Moreover, they appreciate its insightful content, with one customer noting its extensive research and another highlighting how it applies across multiple industries and economic conditions. Additionally, the book's straightforward approach makes it accessible, and customers enjoy the stories about the CEOs featured.
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Customers find the book very readable with excellent writing, and one customer notes it's particularly valuable for project managers.
"...After learning about them I want to learn more. Great book." Read more
"...Because it explains, in the most straightforward of ways, in the clearest of prose, (1) the hallmarks of a good business..." Read more
"This book is great and I highly recommend it, giving four stars because the dust cover came a little dirty but that’s to be expected when buying..." Read more
"...I found the book very easy to read and in many cases reinforced management principles I’ve always felt were important. You will enjoy The Outsiders." Read more
Customers find the book insightful, praising its extensive research and thought-provoking analysis.
"...of a very intelligent thinker, but rather were grounded in the most thorough of research...." Read more
"Love the examples of the exceptional CEOs. Wish every company had leaders like the CEOs in this book." Read more
"...Yeah, the presentation is pretty nice. I like good looking, elegant hardcover books. Now, why am I holding back one star?..." Read more
"...The Outsiders breaks that mold for me. It is filled with surprising insights, very well-written and enjoyable to read." Read more
Customers enjoy the book's storytelling and find it thought-provoking, particularly appreciating the stories about these CEOs.
"...The book is unique in the sense that there are not many books on Corporate Finance case studies. This book is exactly that...." Read more
"...I give this book 2 stars since it tells nice stories about characters that are somewhat obscure in today’s business press...." Read more
"This is book is a great read that will make you think...." Read more
"...This delves more into the person than the company and it's a fascinating read. Could put it down." Read more
Customers appreciate the book's straightforward approach, with one customer noting it serves as an instruction manual for running a public company.
"...Why did I like it so much? Because it explains, in the most straightforward of ways, in the clearest of prose, (1) the hallmarks of a good business..." Read more
"...The strategies are not difficult, they just require a different mindset then is taught in most business schools and they must have the ability to..." Read more
"...It’s an easy, fast-paced read. Well worth the time investment." Read more
"...It explains a general model that most of them used to deliver a share price better than the rest...." Read more
Customers appreciate the diversity of the book's content, highlighting its coverage of multiple industries and economic conditions, with one customer specifically noting its examination of diverse sectors including defense.
"...For example: idea that diversification is the best approach; cash-flow analysis superior indicator than many popular financial ratios; autonomy and..." Read more
"...Recommended for CEO, entrepreneurs and investors." Read more
"interesting discussion on 7 different companies and their history...." Read more
"...It looks at industries as diverse as Defense, Print Journalism and Cable TV. Highly recommended!" Read more
Customers appreciate the book's sturdiness, with one noting that its strategies stand the test of time and another mentioning its great condition.
"...(strong, steady, predictable cash flow, as the sine qua non and core focus)..." Read more
"...I found the book very easy to read and in many cases reinforced management principles I’ve always felt were important. You will enjoy The Outsiders." Read more
"...Read this. Thanks for the solid book and entry into this world." Read more
"...Not a detailed guide, but I feel the strategies do stand the test of time." Read more
Customers like the appearance of the book, with one noting that the pattern matching is accurate.
"...Oh wait! Yeah, the presentation is pretty nice. I like good looking, elegant hardcover books. Now, why am I holding back one star?..." Read more
"...Writing is solid. Pattern matching is accurate although too generalist. Good short read" Read more
"The playbooks of these eight CEOs are strikingly similar and the common themes in their stories will surprise many...." Read more
"This is an excellent look at how important capital allocation skills are to creating value over the long run...." Read more
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Top reviews from the United States
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- Reviewed in the United States on June 7, 2025Format: KindleVerified PurchaseI didn’t know of a majority of these ceos. After learning about them I want to learn more. Great book.
- Reviewed in the United States on September 2, 2013Format: KindleVerified PurchaseAs a businessperson, I have read many, many books over the years that have helped me hone my business thinking and become better at business. As an investor, I also have read so many books that have helped me become a better value investor. Rarely, however, have I found books that have helped me do both at the same time. Roger Lowenstein's book on Warren Buffett, Pat Dorsey's two books on creating protectable value in a business, Howard Mark's book on investing, perhaps the David Clark/Mary Buffet series on value investing, all come to mind.
Mr. Thorndike's book not only falls into the third category, but has made its way to the top of my keeper list. it is simply extraordinary, and I could not recommend it more highly.
Why did I like it so much? Because it explains, in the most straightforward of ways, in the clearest of prose, (1) the hallmarks of a good business (strong, steady, predictable cash flow, as the sine qua non and core focus), (2) the possible sources of cash and uses of cash in a business that taken together generate cash flow in simple algebra (sources less uses equals cash flow), (3) the strategies flowed by 8 business leaders in managing that flow of capital so that the math works out the right way, (4) the incredible similarities in the strategies pursued by these leaders in working with cash flow and the tight correlation to increases in shareholder value, (5) the mindset of these leaders that separated them from the pack, (6) the ability of this group to decentralize, tune out the outside noise and ignore the "institutional imperative" and (7) the common intense focus shared by these leaders on a small set of metrics (all pretty much proxies for measuring cash flow and thus return on equity.
If I had to consolidate those conclusions into a single core principle that came through with crystal clarity for me in this book, it would be that strategic, rational management of cash flow against clear benchmarks may be the single highest priority for leadership in any business. And as a corollary, that so few businesses seem guided by an intense focus on cash flow with its corresponding contribution to shareholder value.
I also was so impressed that the conclusions presented in the book were not simply the musings of a very intelligent thinker, but rather were grounded in the most thorough of research. I likely still would have found much of value even without the research foundation, but that aspect provided even more credence to the analysis presented in the book.
I spent Saturday of Labor Day Weekend reading through this volume as if it were the latest action thriller (geeky, I know). I simply couldn't turn the pages quickly enough, and look forward to returning to its teachings time and time again. It will have a very important place on both my investing and business bookshelves in the years to come.
As Mr. Thorndike says in an interview that I read after reading the book, it would be wonderful if the top business schools would teach more (or, perhaps at all) about management of cash flow as a critical business priority of the CEO that should never under any circumstances be delegated down or away. I think he may have well written the textbook.
- Reviewed in the United States on May 31, 2025Format: HardcoverVerified PurchaseThis book is great and I highly recommend it, giving four stars because the dust cover came a little dirty but that’s to be expected when buying used I suppose. Other than dust cover the condition was perfect
- Reviewed in the United States on April 6, 2014Format: HardcoverVerified PurchaseIf you never picked up a book and only got information through financial media outlets you would think the best CEO’s ever were Jack Welch, Donald Trump, Mark Cuban, and a few others that love media attention. I’ve always been obsessed with reading business biographies, especially on those CEO’s that are rarely interviewed on CNBC. Often times these less visible CEO’s have track records far greater than their counterparts. I want to learn how they grew their companies and built shareholder value.
The Outsiders is a great book that looks at eight CEO’s who produced above average returns for shareholders over the long term. In most cases these CEO’s were not attention junkies and were not only great capital allocators but also time allocators. Over 29 years Tom Murphy of Capital Cities produced a 19.9% compounded annual return. Over 27 years Henry Singleton of Teledyne produced a 20.4% compounded annual return. Over 17 years Nick Chabraja of General Dynamics produced a 23.3% compounded annual return. Over 46 years (to 2011) Warren Buffett of Berkshire Hathaway produced 20.7% compounded annual returns for shareholders.
These CEO’s as well as four others in the book were not your cookie cutter capital allocators and did not fit the mold of most business books you read today. Every one of the CEO’s was a first time CEO (no past history of success) and more than half had very little industry experience before taking over as CEO. I found these two things very interesting especially has it relates to microcap investing. So often I’m trying to find great management in microcap, which can be difficult if there is no prior resume. In all instances the Outsider CEO’s led decentralized organizations empowering others to make decisions and they were great capital allocators.
Outsider CEO’s ran high cash flowing businesses, which allowed them to take on debt (few ever issued equity) to make the strategic acquisition or to buy back stock when it was historically cheap. All but one of the eight companies bought back 30%+ of outstanding shares over a period of time. Some took on debt to buy back shares at depressed levels. For those that did use equity to make acquisitions they always knew when to do it (when the stock was expensive).
There are many more takeaways from the book, but you’ll just have to read it. I found the book very easy to read and in many cases reinforced management principles I’ve always felt were important. You will enjoy The Outsiders.
Top reviews from other countries
- Kindle CustomerReviewed in India on March 27, 2025
5.0 out of 5 stars great book
Format: KindleVerified PurchaseGreat book, provides superb insights on capital allocation, share repurchase, frugal and reduced bureaucracy.
A well written book. Must read for all
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EvandroReviewed in Brazil on July 31, 2024
5.0 out of 5 stars Lições inestimáveis
Format: HardcoverVerified PurchaseLeitura indispensável para empresários, investidores e alocadores de capital no geral.
- Samir GargReviewed in Singapore on October 20, 2023
1.0 out of 5 stars Damaged and weathered product delivered
Format: HardcoverVerified PurchaseSamir GargDamaged and weathered product delivered
Reviewed in Singapore on October 20, 2023
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- Mr XReviewed in Italy on October 31, 2024
5.0 out of 5 stars Amazing!
Format: KindleVerified PurchaseOne of the best business books I've read!
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Julien de blog.mes-investissements .netReviewed in France on May 24, 2014
5.0 out of 5 stars L'art fascinant et sous-estimé de l'allocation de capital !
Format: HardcoverVerified PurchaseUne des façons dont Warren Buffett a adapté le style Benjamin Graham de l'investissement a été (outre l'étude des "moats") de prendre en compte la capacité de l'équipe de direction d'une entreprise à allouer rationnellement le capital. La pierre angulaire de cette stratégie consiste à investir dans des actions d'entreprises aux côtés d'équipes de gestion qui ont compris comment allouer ce capital de la manière la plus avantageuse.
Cet accent mis sur ces compétences particulières de PDG atypiques est le sujet principal du livre. L'auteur, W.Thorndike, part de huit études de cas de ces gestionnaires exceptionnels qui ont su sortir des sentiers battus en prenant des décisions d'allocation de capital, et ont au final récompensé leurs actionnaires avec d'excellents taux de rendement sur le long terme. Ces PDG ont eu besoin pour cela d'un état d'esprit différent de celui enseigné dans la plupart des écoles de commerce, et d'avoir su ignorer l'impératif institutionnel (cette dernière qualité étant d'ailleurs une de celles que Buffett attribue aux bons dirigeants.
Plutôt que de se concentrer sur la gestion opérationnelle quotidienne, ils ont laissé une très large autonomie à leurs équipes et entités opérationnelles (décentralisation extrême, peu de personnel dans le headquarter etc.). En revanche, les décisions d'allocation de capital étaient quant à elles la tâche principale du CEO et les décisions à sa main (centralisation extrême).
Une lecture attentive de ce livre vous aidera à mieux identifier les PDG actuels qui partagent le même état d'esprit que les gestionnaires à succès présentés dans le livre, et pourra donc vous aider en tant qu'investisseur.
A conseiller fortement aux investisseurs passionnés (en bourse notamment), qui choisissent avec sérieux et passion les entreprises dans lesquelles ils investissent.
Julien Delagrandanne, auteur :
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