TIP679: Quality Shareholders by Lawrence Cunningham w/ Clay Finck

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 29 November 2024

⏱️ 69 minutes

🔗️ Recording | iTunes | RSS

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Summary

Anyone can buy a stock in a public company, but not all shareholders are equally committed to a company’s long-term succes. Today’s companies need quality shareholders, or shareholders who buy large stakes and hold for long periods. Lawrence Cunningham explains why in his book — Quality Shareholders: How the Best Managers Attract and Keep Them. When it comes to corporate governance, there is no one better to learn from than Lawrence. He’s the Director of the John Weinberg Center for Corporate Governance at the University of Deleware. He’s also the vice chairman of the board of Constellation Software and a Director at Markel and Kelly Partners Group. Cunningham has also written a number of other excellent books, including Quality Investing, Berkshire Beyond Buffett, Margin of Trust, and The Essays of Warren Buffett. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:33 - What constitutes a quality shareholder versus other types of shareholders? 17:18 - The edge that quality shareholders bring in terms of their investment approach. 24:37 - How quality shareholders impact the share prices of public companies. 43:02 - What managers can do to attract and retain such shareholders. 43:02 - How quality shareholders view executive compensation. 54:52 - The number one job of the board in delivering value to shareholders. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Cunningham’s books: Quality Shareholders, Berkshire Beyond Buffett, Dear Shareholder, Margin of Trust, Quality Investing, and The Essays of Warren Buffett. Email Shawn at [email protected] to attend our free events in Omaha or visit this page. Related Episode: Listen to MI305: Exploring the DNA of Quality Businesses w/ Lawrence Cunningham, or watch the video. Related Episode: Listen to TIP330: Warren Buffett w/ Lawrence Cunningham, or watch the video. Related Episode: Listen to RWH013: Move Slow, Win Big w/ Thomas Russo, or watch the video. Related Episode: Listen to TIP626: Intelligent & Rational Long-term Investing w/ François Rochon, or watch the video. YouTube Interview with Brett Kelly. Alex Morris’s new book: Buffett & Munger Unscripted. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Public Fundrise TastyTrade The Bitcoin Way Connect Invest American Express ReMarkable Toyota Onramp Facet SimpleMining Vanta Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.7	Hey, everybody, welcome to The Investors Podcast.
0:06.0	I'm your host, Clay Fink.
0:07.8	I'm absolutely thrilled to bring you today's episode as I'm going to be chatting about
0:12.0	this wonderful book titled Quality Shareholders by Lawrence Cunningham.
0:16.9	Lawrence has an impressive and diverse resume.
0:19.9	He's the director of the John Weinberg Center for Corporate Governance at the University
0:24.3	of Delaware.
0:25.3	He's also the vice chairman of the board at Constellation Software and a director at
0:29.9	Markell and Kelly Partners Group.
0:32.1	When it comes to corporate governance, there is no one better to learn from than Lawrence.
0:37.4	Cunningham's also written a number of other
0:39.2	excellent books, including Quality Investing, Berkshire Beyond Buffett, Margin of Trust, and the
0:44.6	essays of Warren Buffett. When I first discovered the book Quality Shareholders, I thought it had
0:49.6	somewhat of a cheesy title. I mean, why would a company or its managers really care who their shareholders are?
0:56.6	Then once I started digging in, I discovered that the shareholder base is actually incredibly
1:01.2	important, and good managers should work to attract quality shareholders.
1:06.5	As Cunningham puts it, anyone can buy a stock in a public company, but not all shareholders
1:11.7	are equally committed to a company's long-term success. Today's companies need quality
1:17.0	shareholders, as Warren Buffett called those who load up and stick around or buy large
1:22.5	stakes and hold for long periods. During this episode, I'll cover what constitutes a quality shareholder versus
1:28.6	other shareholder types, the edge that quality shareholders bring in terms of their investment
	...

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