Entity Dossier
entity
David Wargo
Strategic Concepts & Mechanics
Signature MoveStiritz: Poker-Player Odds on Back-of-Envelope LBOs
Operating PrincipleBlank Calendar as Competitive Edge
Cornerstone MoveOne-Page Analysis Then Pounce
Signature MoveMalone: Scale as Virtuous Cycle, Tax as Obsession
Cornerstone MoveAnarchic Decentralization, Dictatorial Capital Control
Risk DoctrineInstitutional Imperative as CEO Kryptonite
Decision FrameworkHurdle Rate as Supreme Filter
Signature MoveSingleton: Phone Booth Tender at All-Time-Low Multiples
Cornerstone MoveSuction Hose Buybacks at Maximum Pessimism
Cornerstone MoveCash Flow as True North, Not Reported Earnings
Signature MoveAnders: Sell Your Favorite Division Without Blinking
Identity & CultureEngineers Over MBAs at the Helm
Competitive AdvantageConcentrated Bets Over Diversified Dribbles
Signature MoveMurphy: Leave Something on the Table Then Lever Up
Capital StrategyTax Counsel Before Every Transaction
Operating PrinciplePer-Share Value Not Longest Train
Signature MoveBuffett: Float Flywheel from Insurance to Empire
Strategic PatternGreedy When Others Are Fearful
Primary Evidence
"It’s remarkable how much value can be created by a small group of really talented people. —David Wargo, Putnam Investments"
Source:The Outsiders_ Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
"As a result of this tax shield, he was comfortable selling systems if prices were attractive, to raise capital to fund future growth. As Malone told David Wargo as early as 1981, “It makes sense to maybe sell off some of our systems . . . at 10 times cash flow to buy back our stock at 7 times.”9"
Source:The Outsiders_ Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
"Bill Ruane of Ruane, Cunniff, and David Wargo of State Street Research."
Source:The Outsiders_ Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
"Because of these polyglot joint ventures, TCI was notoriously hard to analyze and often sold at a discount to its cable peers. (As David Wargo said, “To understand the company you had to read all of their footnotes and very few did.”"
Source:The Outsiders_ Eight Unconventional CEOs and Their Radically Rational Blueprint for Success