The Greatest CEO of 2013? | Investor Beat - 12/27/13 | The Motley Fool

TL;DR

Ron Gross names LinkedIn’s Jeff Weiner as his CEO of 2013, praising his purpose-driven leadership, transformational company, and daily time reserved for thinking. The discussion also examines the stock market’s 30% rise, the Fed’s $85 billion monthly bond-market injections, LinkedIn shares’ roughly 92% gain, and promising industrial companies for 2014. Read on for the reasoning behind these investing views.

Transcript

no more eggnog no more fruitcake let's talk about the business of getting healthy investor beat starts now thanks for watching I'm Chris Hill joined in Studio by investor and health expert Ron gross wow uh we're going to take a step back because there's not a lot of news going on let's be honest but let's talk about 2013 in general you're an experi... Read More

Key Insights

• 😀 The stock market's 30% growth in 2013 is impressive in the face of economic challenges.
• 😄 Valuations suggest that the market's performance is not a bubble, although the role of the Fed's easing programs cannot be dismissed.
• 🉐 Jeff Weiner's leadership at LinkedIn, characterized by purpose and daily reflection, has gained admiration.
• 🔠 Industrial companies are expected to thrive in 2014 due to economic improvement and increased capital spending.
• 👨‍💼 The video provides an overview of important events and trends in investing and business in 2013.
• 🎮 By discussing the market performance and identifying potential opportunities for 2014, the video offers valuable insights for investors.
• 🧑‍🏭 The impact of macro factors on the economy and companies is emphasized, specifically in relation to industrial companies.

Questions & Answers

Q: Who does Investor Beat name as the greatest CEO of 2013?

Ron Gross chooses LinkedIn CEO Jeff Weiner as his CEO of 2013. He admires Weiner as a purpose-driven manager leading a transformational company and praises his habit of reserving time every day simply to think.

Q: Why did Ron Gross admire Jeff Weiner’s leadership at LinkedIn?

Gross describes Jeff Weiner as a purpose-driven manager running a company worthy of admiration. He particularly values Weiner’s discipline of setting aside thinking time every day despite a busy schedule.

Q: Was Elon Musk selected as Investor Beat’s CEO of 2013?

No. Chris Hill notes that Tesla Motors’ Elon Musk appeared on at least one financial outlet’s CEO of the Year list, but Ron Gross selects LinkedIn’s Jeff Weiner as his own choice.

Q: Why was the stock market’s 30% rise in 2013 surprising?

The market gained 30% despite relatively high unemployment, weak economic growth, a government shutdown, a near-default on government debt, and controversy surrounding Obamacare. Gross says that looking only at those conditions, he would not necessarily have expected such a strong year.

Q: Did Ron Gross believe the stock market was in a 1999-style bubble?

Gross says he did not think the market was in bubble territory because valuations did not appear to support that conclusion. He nevertheless gives some credence to the idea that the rise was partly induced by Federal Reserve easing and zero interest rates.

Q: How did Federal Reserve policy affect the market in 2013?

Gross says the Fed’s easing programs, zero interest rates, and injections of $85 billion per month into the bond market may have artificially supported the market. He suggests the best outcome would be for the Fed to taper spending as the economy gains strength.

Q: Did Ron Gross still consider LinkedIn stock a buy after its 2013 rise?

Yes. Although LinkedIn shares were up about 92% year to date, Gross says the Million Dollar Portfolio owned the stock and still considered it a buy because he expected more good things from the company.

Q: Which companies and sector was Ron Gross watching for 2014?

Gross was watching industrial companies, expecting them to benefit from a strengthening economy and increased capital spending. He specifically mentions Caterpillar, Deere, Lincoln Electric, and Flowserve.

Summary & Key Takeaways

• Despite economic challenges, the stock market has surged 30% in 2013.

• Valuations suggest that the market's performance is not a bubble.

• Jeff Weiner of LinkedIn is recognized as an exemplary CEO.

• Industrial companies are expected to benefit in 2014 due to a strengthening economy and increased capital spending.