The Outsiders

Why it’s on the list: William Thorndike’s study of eight unconventional CEOs who produced exceptional returns on capital — the capital-allocation classic.

Where I heard about it

• Recommended by Zack Kanter in a May 2020 reply on X listing books he’d recommend (saved in Kyle’s Roam notes, May 11th, 2020).
• On Jay’s investing reading list — a Google Sheet of 92 books by discipline, saved in Kyle’s Roam notes on April 15th, 2020 (Jay’s Investing Reading List). Jay’s reason: “Understanding the impact of management / CEOs on a company”
• Three pieces in my library — cited in How To Be a Capitalist Without Any Capital, On the Nature of Long-Term Holds (which quotes Will Thorndike directly) and Todd McKinnon — Creating and Defining a New Market Category.
• A “Top Seven Books on Systems” list — recommended there as well.
• In Patrick O’Shaughnessy’s Full Reading List (Investor Field Guide, 2016) — the archive of his monthly book-club recommendations, saved by Kyle in April 2020 — Full Reading List (Investor Field Guide).
• In Patrick O’Shaughnessy’s A Curriculum for the Modern Investor, saved by Kyle in April 2020 — A Curriculum for the Modern Investor (Patrick O’Shaughnessy).

Connections

• How To Be a Capitalist Without Any Capital — where this book is cited.
• On the Nature of Long-Term Holds — where this book is cited.
• Todd McKinnon — Creating and Defining a New Market Category — where this book is cited.