Charley Ellis on How America Actually Got Built (Investing in America Series) | #633
My guest today is Charles Ellis, founder of Greenwich Associates, longtime member of Yale’s investment committee, and author of more than 20 books, including the classic Winning the Loser’s Game. In today’s episode, Charley reflects on writing the first major book on share repurchases 50 years ago, when the idea was so foreign that Goldman mailed it to 1,000 corporations as a “legitimizer.” Charley also walks us through his new book, Great American Investments: A History of the Bold Initiatives that Shaped a Nation, covering 14 audacious public investments from the Louisiana Purchase to the Marshall Plan. He explains how each came down to one or two obsessed individuals, why Alaska turned out to be the bargain of the century, and how Frances Perkins muscled Social Security into law. As the episode winds down, he shares the lunch with Sandy Gottesman in the early 1970s that led him to buy Berkshire Hathaway at $700 a share — and hold it ever since.
Key Points
- The compounding power of long-term investing in diversified index funds is the key to financial success.
- Many transformative American projects, from the Louisiana Purchase to Social Security, were driven by a few determined individuals with bold visions.
- The American spirit of entrepreneurship and volunteerism continues to drive innovation and community improvement.
Resources: Great American Investments: A History of the Bold Initiatives that Shaped a Nation Repurchase of Common Stock
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Transcript
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