Chuck Akre, a seasoned investor and the visionary founder of Akre Capital Management, has a remarkable investment philosophy known as the ‘Three-Legged Stool Strategy.’ This strategic approach has not only stood the test of time but has also delivered outstanding results, compounding at an impressive rate of 14.92% since the inception of Akre Focus Fund in 2009. The Three-Legged Stool symbolizes a synthesis of three indispensable investment pillars: 1) great businesses, 2) talented management, and 3) high reinvestment rates. Akre’s profound commitment to this metaphor is accentuated by the presence of an actual three-legged milking stool in the conference room of Akre Capital, serving as a tangible testament to the strategy’s resilience honed over years of experience. This article seeks to break down Akre’s Three-Legged Stool Strategy as a framework for sustainable investment success. Source: Akre Capital 1st leg: Great business Akre’s early investment in Berkshire Hathaway (since 1977) significantly influenced his investment philosophy, where he observed that the book value per share growth...