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Henry Singleton: Teledyne Case Study of Capital Allocation
Posted by: Tannor (IP Logged)
Date: October 22, 2013 11:12AM
Many people new to the investment world will be familiar with names like Warren Buffett, Charlie Munger, Carl Icahn, or David Einhorn. Not very many people talk about Henry Singleton of Teledyne, the man who Warren Buffett in 1980 said the following about: "Henry Singleton has the best operating and capital deployment record in American business... if one took the 100 top business school graduates and made a composite of their triumphs, their record would not be as good as Singleton's."
During the leadership of Singleton, Teledyne grew at a phenomenal pace of 20.4% CAGR from May 31, 1963, to June, 21, 1990. Singleton built Teledyne from scratch through an acquisition-focused business model, taking advantage of mis-pricing by either purchasing more businesses at attractive prices or divesting old, less profitable, more capital-intensive ones.
“The best investors are avid history students of the market, companies and great investors. The more you learn from others, the less expensive your own tuition will be. Not to study the Teledyne story and the managerial success of Dr. Henry Singleton and his management teams would be tragic. Dr. Singleton was both a great operator as well as capital allocator.
There are many lessons to be learned from studying a great businessman like Dr. Henry Singleton. Unfortunately, no business school—that I know of—has done a case study on the Teledyne Technologies Incorporated (TDY) story. You will read several articles on Henry Singleton and Teledyne including a case study and letter written by an investor in Teledyne, Mr. Leon Cooperman. Then you will learn more about the company from an insider, Mr. George Roberts, before pondering several questions…”
Teledyne and Henry Singleton a CS of a Great Capital Allocator via CSINVESTING.com
Stocks Discussed: TDY, SPY, IWM,