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How A Change of CEO Either Makes Or Breaks A Company
As Warren Buffett always says what makes a good business is 1) earning good returns on the net tangible capital required in their operation, and 2) capable and honest managers. You can always find good business models, but good leaders are rare.
I’m always fascinated by stories about how this 1-person personnel change (the CEO) helped businesses with triumphant comebacks, and how they became why companies failed. Unlike many zero-to-one stories (which can be at the mercy of luck sometimes), CEO changes reveal the stark contrast between the ex and the incumbent.
When new CEOs come in, they bring their new vision and agenda. The decisions and even personalities will shape the companies into something else, better or worse.
In this article, I will talk about my favorite stories of CEO changes. The public companies in the example are easy to fact-check, as private companies are harder. But I try to find sources as reliable as possible.
Let’s dive into their touch of magic!
How New CEOs Made Companies
Steve Jobs, Apple (1996–2011)
As of 2023, Apple is the most valuable company in the world, with a $2 trillion valuation. Do you know it took a wild turnaround to become…
