“The Outsiders” is another book recommended by Warren Buffett in his 2012 Shareholder’s Letter on top of “Investing Between The Lines”. In the letter, he comments, “The Outsiders, by William Thorndike, Jr., is an outstanding book about CEOs who excelled at capital allocation. It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met.” Buffett, being as modest as always, declines to say that he has been featured in the book as well.

The book is about how eight CEOs went against the norm and created enormous success, both for the company and the shareholders. The CEOs are quipped as “outsiders ” by the author as they are unassuming and do not pander to Wall Street’s expectations. These CEOs consistently achieved extraordinary results by constantly zigging while their peers zagged. If you think Jack Welch was an extraordinary CEO, you have not met or read ...