--- title: "Meaning & Key Takeaway of: Most chief executives rise to that…" description: "\"Most chief executives rise to that position by being good operating managers. Few have extensive experience or training with capital allocation. What C..." image: "https://sms4smile.com/quotes/i/6d7/whitney-tilson-9949_chief-executives_most-chief-executives-rise-to-that-posit_2806560.jpg" --- # Most chief executives rise to that position by being good… ![“Most chief executives rise to that position by being good operating managers. Few have extensive experience or training with capital allocation. What CEO wants to return excess cash to shareholders when it could be used to expand his or her empire?” quote by Whitney Tilson](https://sms4smile.com/quotes/i/6d7/whitney-tilson-9949_chief-executives_most-chief-executives-rise-to-that-posit_2806560.jpg) [Download](https://sms4smile.com/quotes/i/6d7/whitney-tilson-9949_chief-executives_most-chief-executives-rise-to-that-posit_2806560.jpg) [Open image](https://sms4smile.com/quotes/i/6d7/whitney-tilson-9949_chief-executives_most-chief-executives-rise-to-that-posit_2806560.jpg) > “Most chief executives rise to that position by being good operating managers. Few have extensive experience or training with capital allocation. What CEO wants to return excess cash to shareholders when it could be used to expand his or her empire?” [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Notes that CEOs often excel at operations but lack capital allocation expertise, questioning why they return cash to shareholders instead of reinvestment. **In simple terms:** CEOs may not be best at allocating capital. Key Takeaway Prioritize reinvestment over payouts. Themes leadership finance corporate strategy Mood critical analytical Type business financial When to use this quote - board meetings - investment decisions - growth planning - shareholder communication Key Concepts capital allocation shareholder returns Questions to Reflect On - What incentives drive CEOs to favor buybacks? - How can boards encourage strategic reinvestment? A Different Perspective Returning cash can limit long‑term growth and competitive edge. ★ ★ ★ ★ ★ No ratings yet [Allocation Ceo](https://sms4smile.com/quotes/about/allocation-ceo-3489524/) [Capital Allocation](https://sms4smile.com/quotes/about/capital-allocation-852747/) [Cash Shareholders](https://sms4smile.com/quotes/about/cash-shareholders-3489526/) [Ceo Wants](https://sms4smile.com/quotes/about/ceo-wants-3489525/) [Chief executives](https://sms4smile.com/quotes/about/chief-executives/) [Experience](https://sms4smile.com/quotes/about/experience/) [Good](https://sms4smile.com/quotes/about/good/) [Management](https://sms4smile.com/quotes/about/management/) [Rise](https://sms4smile.com/quotes/about/rise/) [Training](https://sms4smile.com/quotes/about/training/) [Used](https://sms4smile.com/quotes/about/used/) ## Related quotes > [I have long believed the corporate world is plagued by poor capital allocation decisions.](https://sms4smile.com/quotes/whitney-tilson/i-have-long-believed-the-corporate-world-is-plagued-by-poor-capital/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [As I looked across the company, there are three things that keep coming up that we need to work on: culture, our operating rigor,…](https://sms4smile.com/quotes/john-l-flannery/as-i-looked-across-the-company-there-are-three-things-that-keep/) [John L. Flannery](https://sms4smile.com/quotes/author/john-l-flannery/) > [Accounting consequences do not influence our operating or capital-allocation decisions. When acquisition costs are similar, we much prefer to purchase $2 of earnings that…](https://sms4smile.com/quotes/warren-buffett/accounting-consequences-do-not-influence-our-operating-or-capital/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Ethics must begin at the top of an organization. It is a leadership issue and the chief executive must set the example.](https://sms4smile.com/quotes/edward-f-hennessey/ethics-must-begin-at-the-top-of-an-organization-it-is-a-leadership/) [Edward F. Hennessey](https://sms4smile.com/quotes/author/edward-f-hennessey/) > [ \[Former chief executives\] come away thinking that America needs a strong, functioning presidency to succeed, and they become very protective of that office. Democrats… ](https://sms4smile.com/quotes/nancy-gibbs/former-chief-executives-come-away-thinking-that-america-needs-a/) [Nancy Gibbs](https://sms4smile.com/quotes/author/nancy-gibbs/) > [It has become the custom in our country to expect all Chief Executives, from the President down, to conduct activities analogous to an entertainment…](https://sms4smile.com/quotes/calvin-coolidge/it-has-become-the-custom-in-our-country-to-expect-all-chief/) [Calvin Coolidge](https://sms4smile.com/quotes/author/calvin-coolidge/) > [There is no constitutional or legal requirement that the President shall take the oath of office in the presence of the People but there…](https://sms4smile.com/quotes/benjamin-harrison/there-is-no-constitutional-or-legal-requirement-that-the-president/) [Benjamin Harrison](https://sms4smile.com/quotes/author/benjamin-harrison/) > [Shareholder meetings are not usually the occasion for utter candor - or for that matter, arch sarcasm - by chief executives.](https://sms4smile.com/quotes/alex-berenson/shareholder-meetings-are-not-usually-the-occasion-for-utter-candor-or/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [As we all know there have been fabulous women chief executives: Margaret Thatcher, Golda Meir.](https://sms4smile.com/quotes/margaret-hoover/as-we-all-know-there-have-been-fabulous-women-chief-executives/) [Margaret Hoover](https://sms4smile.com/quotes/author/margaret-hoover/) > [Of one thing the investor can be certain: A large company's need to bring in a new chief executive from the outside is a…](https://sms4smile.com/quotes/philip-arthur-fisher/of-one-thing-the-investor-can-be-certain-a-large-company-s-need-to/) [Philip Arthur Fisher](https://sms4smile.com/quotes/author/philip-arthur-fisher/) > [I believe that if you go and ask a chief executive of a Goldman Sachs or a BP, and they answer you honestly they…](https://sms4smile.com/quotes/ian-bremmer/i-believe-that-if-you-go-and-ask-a-chief-executive-of-a-goldman-sachs/) [Ian Bremmer](https://sms4smile.com/quotes/author/ian-bremmer/) > [At the heart of any good business is a chief executive officer with one.](https://sms4smile.com/quotes/malcolm-forbes/at-the-heart-of-any-good-business-is-a-chief-executive-officer-with/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [Strangely enough, politics may just be the one realm in which having kids imposes no penalty on women. Kids are practically a necessity. For…](https://sms4smile.com/quotes/stacy-schiff/strangely-enough-politics-may-just-be-the-one-realm-in-which-having/) [Stacy Schiff](https://sms4smile.com/quotes/author/stacy-schiff/) > [ \[F\]or the most part football these days is the opium of the people, not to speak of their crack cocaine. Its icon is the… ](https://sms4smile.com/quotes/terry-eagleton/f-or-the-most-part-football-these-days-is-the-opium-of-the-people-not/) [Terry Eagleton](https://sms4smile.com/quotes/author/terry-eagleton/) > [I accept that responsibility and ask only that I be judged by my performance as its chief executive.](https://sms4smile.com/quotes/jane-byrne/i-accept-that-responsibility-and-ask-only-that-i-be-judged-by-my/) [Jane Byrne](https://sms4smile.com/quotes/author/jane-byrne/) ## More by Whitney Tilson > [The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for…](https://sms4smile.com/quotes/whitney-tilson/the-exact-details-of-how-you-practice-value-investing-will-vary/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [If you look at the history of technology gadget makers, hardware makers, it's littered with the corpses of Palm and RIM and companies like…](https://sms4smile.com/quotes/whitney-tilson/if-you-look-at-the-history-of-technology-gadget-makers-hardware/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [Mueller is the leading North American provider of water infrastructure and flow control products - things such as fire hydrants, valves, pipes, fittings, and…](https://sms4smile.com/quotes/whitney-tilson/mueller-is-the-leading-north-american-provider-of-water/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [When it comes to owning stocks of the best-known businesses in the world, value investors usually feel like children looking through the window of…](https://sms4smile.com/quotes/whitney-tilson/when-it-comes-to-owning-stocks-of-the-best-known-businesses-in-the/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [My experience is that very few people have what it takes to be a successful investor, as I discussed in The Arrogance of Stock…](https://sms4smile.com/quotes/whitney-tilson/my-experience-is-that-very-few-people-have-what-it-takes-to-be-a/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [The mark of a wise person isn't never making mistakes - everyone makes plenty of them. Rather, it's the ability to quickly admit -…](https://sms4smile.com/quotes/whitney-tilson/the-mark-of-a-wise-person-isn-t-never-making-mistakes-everyone-makes/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [There is no sure-fire way to get rich quickly. In fact, the pursuit of that usually leads to ruin.](https://sms4smile.com/quotes/whitney-tilson/there-is-no-sure-fire-way-to-get-rich-quickly-in-fact-the-pursuit-of/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [When reviewing one's portfolio, it is important to be aware of common mental mistakes that may lead to bad decisions. The most powerful is…](https://sms4smile.com/quotes/whitney-tilson/when-reviewing-one-s-portfolio-it-is-important-to-be-aware-of-common/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [While I take no pleasure in others' misfortunes, we've historically made most of our profits from other investors behaving in a panicked and irrational…](https://sms4smile.com/quotes/whitney-tilson/while-i-take-no-pleasure-in-others-misfortunes-we-ve-historically/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [I'd say the general outline of a sound investment approach is, first of all, you have to decide are you going to try to…](https://sms4smile.com/quotes/whitney-tilson/i-d-say-the-general-outline-of-a-sound-investment-approach-is-first/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [I have encountered thousands of value investors over the years and am constantly struck by their differences - and their similarities.](https://sms4smile.com/quotes/whitney-tilson/i-have-encountered-thousands-of-value-investors-over-the-years-and-am/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [In life, an abundance of confidence gives us higher motivation, persistence, and optimism and can allow us to accomplish things we otherwise might not…](https://sms4smile.com/quotes/whitney-tilson/in-life-an-abundance-of-confidence-gives-us-higher-motivation/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [Many significant stock-price inefficiencies can occur when a company is spun off.](https://sms4smile.com/quotes/whitney-tilson/many-significant-stock-price-inefficiencies-can-occur-when-a-company/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [Independent thinking is not just helpful in becoming a successful investor, it’s required.](https://sms4smile.com/quotes/whitney-tilson/independent-thinking-is-not-just-helpful-in-becoming-a-successful/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [Assessing management quality is clearly one of the most important aspects of an investment decision.](https://sms4smile.com/quotes/whitney-tilson/assessing-management-quality-is-clearly-one-of-the-most-important/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) [Explore all 69 Whitney Tilson quotes ](https://sms4smile.com/quotes/author/whitney-tilson/) ## More Chief executives quotes > [ \[Former chief executives\] come away thinking that America needs a strong, functioning presidency to succeed, and they become very protective of that office. Democrats… ](https://sms4smile.com/quotes/nancy-gibbs/former-chief-executives-come-away-thinking-that-america-needs-a/) [Nancy Gibbs](https://sms4smile.com/quotes/author/nancy-gibbs/) > [I believe that if you go and ask a chief executive of a Goldman Sachs or a BP, and they answer you honestly they…](https://sms4smile.com/quotes/ian-bremmer/i-believe-that-if-you-go-and-ask-a-chief-executive-of-a-goldman-sachs/) [Ian Bremmer](https://sms4smile.com/quotes/author/ian-bremmer/) > [Ethics must begin at the top of an organization. It is a leadership issue and the chief executive must set the example.](https://sms4smile.com/quotes/edward-f-hennessey/ethics-must-begin-at-the-top-of-an-organization-it-is-a-leadership/) [Edward F. Hennessey](https://sms4smile.com/quotes/author/edward-f-hennessey/) > [ \[F\]or the most part football these days is the opium of the people, not to speak of their crack cocaine. Its icon is the… ](https://sms4smile.com/quotes/terry-eagleton/f-or-the-most-part-football-these-days-is-the-opium-of-the-people-not/) [Terry Eagleton](https://sms4smile.com/quotes/author/terry-eagleton/) > [Strangely enough, politics may just be the one realm in which having kids imposes no penalty on women. Kids are practically a necessity. For…](https://sms4smile.com/quotes/stacy-schiff/strangely-enough-politics-may-just-be-the-one-realm-in-which-having/) [Stacy Schiff](https://sms4smile.com/quotes/author/stacy-schiff/) > [At the heart of any good business is a chief executive officer with one.](https://sms4smile.com/quotes/malcolm-forbes/at-the-heart-of-any-good-business-is-a-chief-executive-officer-with/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [I accept that responsibility and ask only that I be judged by my performance as its chief executive.](https://sms4smile.com/quotes/jane-byrne/i-accept-that-responsibility-and-ask-only-that-i-be-judged-by-my/) [Jane Byrne](https://sms4smile.com/quotes/author/jane-byrne/) > [Of one thing the investor can be certain: A large company's need to bring in a new chief executive from the outside is a…](https://sms4smile.com/quotes/philip-arthur-fisher/of-one-thing-the-investor-can-be-certain-a-large-company-s-need-to/) [Philip Arthur Fisher](https://sms4smile.com/quotes/author/philip-arthur-fisher/) > [As we all know there have been fabulous women chief executives: Margaret Thatcher, Golda Meir.](https://sms4smile.com/quotes/margaret-hoover/as-we-all-know-there-have-been-fabulous-women-chief-executives/) [Margaret Hoover](https://sms4smile.com/quotes/author/margaret-hoover/) > [Shareholder meetings are not usually the occasion for utter candor - or for that matter, arch sarcasm - by chief executives.](https://sms4smile.com/quotes/alex-berenson/shareholder-meetings-are-not-usually-the-occasion-for-utter-candor-or/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [There is no constitutional or legal requirement that the President shall take the oath of office in the presence of the People but there…](https://sms4smile.com/quotes/benjamin-harrison/there-is-no-constitutional-or-legal-requirement-that-the-president/) [Benjamin Harrison](https://sms4smile.com/quotes/author/benjamin-harrison/) > [It has become the custom in our country to expect all Chief Executives, from the President down, to conduct activities analogous to an entertainment…](https://sms4smile.com/quotes/calvin-coolidge/it-has-become-the-custom-in-our-country-to-expect-all-chief/) [Calvin Coolidge](https://sms4smile.com/quotes/author/calvin-coolidge/) > [If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye.…](https://sms4smile.com/quotes/mitt-romney/if-general-motors-ford-and-chrysler-get-the-bailout-that-their-chief/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [I think Gary Johnson would be capable of being a good chief executive and yes a commander in chief - Aleppo to the contrary,…](https://sms4smile.com/quotes/william-weld/i-think-gary-johnson-would-be-capable-of-being-a-good-chief-executive/) [William Weld](https://sms4smile.com/quotes/author/william-weld/) > [Whatever the political affiliation of our next President, whatever his views may be on all the issues and problems that rush in upon us,…](https://sms4smile.com/quotes/john-f-kennedy/whatever-the-political-affiliation-of-our-next-president-whatever-his/) [John F. Kennedy](https://sms4smile.com/quotes/author/john-f-kennedy/) [Browse all 52 Chief executives quotes ](https://sms4smile.com/quotes/about/chief-executives/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Most chief executives rise to that position by being good operating managers. Few have extensive experience or training with capital allocation. 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