Not all shareholders are equally committed to a company's long-term success. Today's companies need quality shareholders who buy large stakes and hold them for extended periods. Lawrence Cunningham explains why in his book — Quality Shareholders: How the Best Managers Attract and Keep Them. Lawrence, Director of the John Weinberg Center for Corporate Governance, is vice chairman of Constellation Software and a director at Markel and Kelly Partners Group. He has authored several notable books on investing and corporate governance. IN THIS EPISODE YOU’LL LEARN: 0:00:00 - Intro 0:00:53 - Quality Shareholder Overview 0:08:01 - Berkshire Hathaway & Warren Buffett 0:11:18 - Three rising trends with institutional investors 0:12:20 - Traits of Quality Shareholders 0:16:24 - Shareholder Votes 0:19:40 - Quality Shareholder & Competitive Advantage 0:21:18 - Share Price Volatility 0:26:57 - Corporate Mission Statement 0:30:26 - Annual Letter 0:34:32 - Annual Meeting 0:38:37 - Quarterly Forecasts & Guidance 0:41:00 - Which metrics are most important? 0:46:57 - How to think about capital allocation 0:49:23 - Shareholder Directors 0:52:41 - Executive Compensation 0:58:47 - Dual class share structure 1:01:57 - Outro 🤝 Network with like-minded value investors and get new stock ideas by joining the TIP Mastermind Community. https://www.theinvestorspodcast.com/mastermind/ 📊 Add the Fundrise Flagship Fund to your portfolio in just minutes and with as little as $10. http://fundrise.com/wsb 💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: https://www.theinvestorspodcast.com/subscribe-youtube/ ▶️ RELATED EPISODES: - Quality Investing: How to Own the Best Companies for Long-Term Wealth w/ Lawrence Cunningham: https://youtu.be/VIZ4U3yIJ58 - Warren Buffett With Lawrence Cunningham: https://youtu.be/voVi4PfoYOE - Crushing The Market Over Four Decades w/ Thomas Russo: https://youtu.be/oqpeuaPyFMI - Intelligent & Rational Long-Term Investing w/ François Rochon: https://youtu.be/0eOzPgsmD2A - Warren Buffett: The Power of Corporate Governance w/ Lawrence Cunningham: https://youtu.be/2ltz4wrENpE 🎧 Listen to our episodes here: https://open.spotify.com/show/28RHOkXkuHuotUrkCdvlOP 🖊️ Access the transcript and learn more about the guest here: https://www.theinvestorspodcast.com/episodes/quality-shareholders-by-lawrence-cunningham/ 📖 BOOK MENTIONED: - Quality Shareholders by Lawrence Cunningham: https://amzn.to/3COwGsx - Berkshire Beyond Buffett by Lawrence Cunningham: https://amzn.to/412nWsM - Dear Shareholder by Lawrence Cunningham: https://amzn.to/416AHCs - Margin of Trust by Lawrence Cunningham: https://amzn.to/4i1lokC - Quality Investing by Lawrence Cunningham: https://amzn.to/4g56EPY - The Essays of Warren Buffett by Warren E. Buffett: https://amzn.to/4g3KFZJ 💡 OTHER RESOURCES - Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future — Use our link here for a 14-day free trial: https://www.sahg6dtr.com/59QC8Z/R74QP/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ABOUT OUR SHOW 🎙 On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market. 🌍 Website: https://www.theinvestorspodcast.com/we-study-billionaires/ 📝 Help us understand our audience better so we can create a more intentional user experience by answering this survey! https://www.theinvestorspodcast.com/survey2023-youtube ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ 📚OUR FREE INVESTING COURSES/RESOURCES https://www.theinvestorspodcast.com/tip-academy/ 📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE https://www.theinvestorspodcast.com/tip-finance/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.