Link
https://docs.google.com/spreadsheets/d/18oStHdBC1cpfd85xRvGY-ihOzFI4KsR8eQvIgUpKYcU/edit?usp=sharing
The Why
One of Charlie Munger’s tenets is learning from others. As a brand leader, you build sequentially which means you get to learn what works and what does not work from experience one at a time. Public companies are a wealth of data and while not nearly as granular as I would want, there is a ton to be learned. Some companies are exceptional and provide master classes in self discipline and building value year after year for generations (bonjour Hermes), some show how great focus can build strong franchises much faster (looking at you Lululemon) and some companies provide endless cautionary tales in what not to do (err, Allbirds).
What
The Elephant Herd Public Company Index is a work in progress which will improve over time with your suggestions. I have built it to provide benchmarks on the metrics I believe to be most important for brand success. I believe brands are machines designed to maximize returns given various capital inputs. Investors can put their money anywhere, but want to maximize their Return on Invested Capital. The best way for you as a brand leader to make your vision a reality and enjoy the success you work so hard to attain is to deliver superior returns on invested capital. Do that and capital, opportunities, exits and success will flow to you.
With the Index, I focus primarily on metrics of margins and capital efficiency. There are other metrics around growth as well as stock performance (after all performance should ultimately be rewarded). We are drowning in data, so I don’t attempt to have every possible metric. Over time, I will add and hopefully subtract some. The Index is also not exhaustive, so I will be adding companies. Your suggestions on these fronts will be greatly appreciated. I hope you use the Index to benchmark yourself to exceptional companies and understand what is possible.
Methodology
I plan to update the Index at least quarterly and maybe more frequently as earnings announcements come out. And I will also make video and posts and analyses around what I find interesting and helpful for brand leaders to know.
Sharing & Feedback
Please share this resource with colleagues and friends. A link and attribution to Elephant Herd Consulting would be appreciated.
Lastly, knowing the benchmarks of the best in class is one thing. Getting there is another. My consulting is designed to help brand leaders and their teams understand their business in a new light at a granular level and take specific actions around products, customers and distribution to improve profitability and capital efficiency. If you would like help or to learn more, let’s schedule time to chat.
https://docs.google.com/spreadsheets/d/18oStHdBC1cpfd85xRvGY-ihOzFI4KsR8eQvIgUpKYcU/edit?usp=sharing