This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Do Outsider CEOs Have an Advantage Among Technology Stocks?

James Dennin, Kapitall: After our screen on stocks with attractive CEOs, we considered stock performance by looking for outsider CEOs. 

One of Warren Buffett's favorite books (from his reading list for 2012) is The Outsiders : 8 Unconventional CEOs and Their Radically Rational Blueprint for Success. The book is an in-depth look (there's a great summary here) at the exemplary performance of eight CEOs who yielded incredibly high returns while also sharing a few noteworthy characteristics that made them unusual compared to their peers.

A lot of them aren't particularly surprising. They focus more on value per share than growth overall. They are careful allocaters of capital. They are thoughtful introverts when many CEOs are typically more charismatic.

But one common theme that's more surprising than the rest is a lack of management experience. Whether this helps them think outside of the box, or helps them be more detached in how they restructure the company, all eight of the exemplary "outsiders" in the group had very little experience leading other people. 

Investing ideas

With that in mind, we built this list of stocks starting with the top 20 companies of Glassdoor's database of CEO approval ratings. Then we narrowed the list by focusing only on companies that had a CEO with fewer than five years of management experience. 

This was tricky to do, because not every CEO has a biography that's easy to verify on the internet. But all six of the CEOs on this list either founded their company at a very young age; or proceeded incredibly rapidly though ranks. The first thing you'll notice is that almost all the companies left on our list are technology stocks. 

Click on the interactive chart below to view analyst ratings over time. 

Do you see investing opportunities based on CEO approval ratings? Use the list below to begin your own analysis. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.30 -1.00%
FB $118.76 0.81%
GOOG $706.65 0.74%
TSLA $215.61 1.90%
YHOO $36.99 0.14%


Chart of I:DJI
DOW 17,657.19 -3.52 -0.02%
S&P 500 2,045.40 -5.23 -0.26%
NASDAQ 4,696.5620 -20.5320 -0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs