Chuck Akre - Investing In Compounding | Yearly Investor

Akre held positions as shareholder, director, CEO of the Asset Management Division and director of Research at Johnston, Lemon & Co. (a NYSE member firm). Akre established his own firm, Akre Capital Management, in 1989 and operated it as part of Friedman, Billings, Ramsey & Co. until 1999. In 2000, ACM became independent again.

He says that there are three components he looks for in a great business:
1. The first is we spend a lot of time trying to understand what's causing this above average return to occur. Is it getting better or worse?
2. The second thing we look for are the people who run the business and not only do we want to have great business managers but we want to see to it that they treat public shareholders as partners even if they don't know them. and then lastly,
3. We look to see if there's a great history of reinvestment of the free cash flow as well as a significant opportunity to reinvest free cash flow and earn above average rates of return.”

00:00:00 - Introduction
00:00:42 - How Chuck Akre finds and defines these Compounding Machines
00:02:13 - Why don't you favor Dividends as much as many of the other Great Investors that I talk to do?
00:04:52 - what he looks for in an underlying business?
00:09:02 - Time to Invest

#investingforbeginners #investing #personalfinance #chuckakre #yearlyinvestor