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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV