Episode 08Haren Bhakta, CFA

Haren Bhakta, CFA

Why the S&P Buys More of a Company After Its Founder Dies

Episode 08
About the Guest

Haren Bhakta, CFA.

Founder and CEO of Inside Ownership Index (OWN), built on the idea that companies with deep insider ownership outperform the market. A CFA charterholder who previously led product at Dapper Labs (NBA Top Shot, Flow blockchain).

More from Haren Bhakta, CFA

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Key moments

1:56 The Berkshire meeting that sparked an ETFSitting at Warren Buffett's first meeting without Charlie Munger, the founder feared what happens to Berkshire when Buffett dies. 3:25 Why the S&P buys more of a stock as founders leaveFree-float adjusting means index funds buy MORE of a company after its owner-operator retires, sells, or dies—backwards from what investors should want. 10:30 IBM's fall: proof leadership departure kills dominanceIBM was 2.5x larger than its nearest competitor in 1984, but fell out of the top 10 within eight years of its owner-chairman retiring. 15:00 The 100-bagger secret: 19 of 21 shared one traitStudying every stock that returned 100x since 2000, 19 of 21 had insider ownership above 5% before their massive run-up. 19:35 Zoo lion vs. wild lion: the CEO metaphorA hired 'zoo lion' CEO gets paid regardless of performance, while an owner-operator 'wild lion' feels the pain of mistakes directly.

Clips

He found every stock from 2000 to 2025 that turned $10,000 into over a million. 19 of the 21 had insiders owning 5%+ of the company. Skin in the game shows up in the returns. Full episode in bio.TikTok

He found every stock from 2000 to 2025 that turned $10,000 into over a million. 19 of the 21 had insiders owning 5%+ of the company. Skin in the game shows up in the returns. Full episode in bio.

691 views
He flew to Omaha every year for the Berkshire meeting. Then Munger passed, and at the first meeting without him he caught himself thinking: what do I do with my shares when Buffett's gone? He didn't buy the company. He bought his trust in one person. That question became a whole thesis. Full ep on Pale Blue Nexus. Hashtags:TikTok

He flew to Omaha every year for the Berkshire meeting. Then Munger passed, and at the first meeting without him he caught himself thinking: what do I do with my shares when Buffett's gone? He didn't buy the company. He bought his trust in one person. That question became a whole thesis. Full ep on Pale Blue Nexus. Hashtags:

670 views
Buffett took control of Berkshire in 1965. Schultz bought Starbucks when it was a few stores. Neither founded the company. The signal isn't founders, it's owners. Ownership buys you decades instead of quarters. Not investment advice.TikTok

Buffett took control of Berkshire in 1965. Schultz bought Starbucks when it was a few stores. Neither founded the company. The signal isn't founders, it's owners. Ownership buys you decades instead of quarters. Not investment advice.

629 views
The winners aren't companies. They're people... Index funds win because they never sell the winners. But the real outliers aren't the companies, they're the leaders running them. The power law is steeper across people than businesses. Full episode: https://youtu.be/XjHigKgY_78?si=vT6UxnDCRsHqoQDfTikTok

The winners aren't companies. They're people... Index funds win because they never sell the winners. But the real outliers aren't the companies, they're the leaders running them. The power law is steeper across people than businesses. Full episode: https://youtu.be/XjHigKgY_78?si=vT6UxnDCRsHqoQDf

505 views