Avoid Companies with CEOs Who Golf Too Much

Malcom Gladwell is back with his second season of Revisionist History. The first episode is A Good Walk Spoiled

In the middle of Los Angeles — a city with some of the most expensive real estate in the world — there are a half a dozen exclusive golf courses, massive expanses dedicated to the pleasure of a privileged few. How do private country clubs afford the property tax on 300 acres of prime Beverly Hills real estate? RH brings in tax assessors, economists, and philosophers to probe the question of the weird obsession among the wealthy with the game of golf.

What does golf have to do with investing?

CEOs Who Golf Too Much

The gem in this podcast starts around 5:35 minutes and continues till 9:19. If you include – and I don’t know why you wouldn’t – the little dig at former Bear Stearns CEO Jimmy Cayne for leaving early on Fridays to play golf while his firm collapsed.

“The more golf a CEO plays, the worst his firm does.”

“The more golf a CEO plays, the more likely he is to be fired.”

Some further reading.

Fore! An Analysis of CEO Shirking