Chuck Akre

Chuck Akre founded Akre Capital Management and became known for his three-legged stool analytical framework for identifying exceptional compounding businesses: (1) an extraordinary business model with high returns on capital; (2) outstanding management team who are good capital allocators; and (3) reinvestment opportunities at high rates of return for a long period. His major investments have included American Tower Corporation (held for decades), MasterCard, CarMax, and others that fit this profile. Akre has been willing to hold businesses through periods of apparent overvaluation because his primary criterion is whether the business can compound intrinsic value at high rates over long periods. His track record demonstrates the power of identifying and staying with exceptional businesses rather than attempting to time markets.