A couple days ago I wrote about JP Morgan and their inflated stock price. Some of the reasons offered to justify that conclusion were the off balance sheet derivatives, commercial real estate and credit card exposure. In reaching this conclusion, I noted that Jamie Dimon is hands down the best leader in his industry. Therefore, in this day and age, it is productive and beneficial to profile a man that history will remember fondly, whenever that time comes.
After reading House of Dimon, I am obliged to consider the possibility that JP Morgan is not overbought. At some point there has to be a management premium built into a stock, and Jamie Dimon is the kind of CEO that induces such a premium.
The new book by Patricia Crisafulli offers rare insights regarding Mr. Dimon's handling of JP Morgan before and during the Financial Crisis.
The book offers some keen insight into the day to day handling of employees by Mr. Dimon and it becomes clear early on why Mr. Dimon has been so successful. The book explores the various traits that have made Mr. Dimon successful. One tactic that caught my eye was his habit of keeping a form of a "to do list" in his pocket. Everytime someone owed him an answer, a report, or any response, he would write that down on a piece of paper and keep it in his pocket. Once he received the answer he wanted, he would cross off the item on the piece of paper. This was a way for him to keep track of everything his management team was doing, and make sure jobs were getting accomplished.
If there was a problem in the Company, he made sure that it was his problem. Unless, someone decided not to share the particular problem, in it was solely the individual's responsibility. Something he strongly frowned upon.
What makes Mr. Dimon shine is his ability to hold others accountable. He is ferociously competitive and tries to instill his competitive nature in his employees.
He keeps daily tabs on his management team and works just as hard as any employee at the company. In a day and age where expensive furniture, lavish corporate jets and needless frills are the norm, Mr. Dimon is the unusual.
This is a great profile. I would recommend this to anyone involved in management, investing or interested in starting a business.
My only criticism of the book is in the pudding. Because the book does a great job at allowing you inside the mind of a cutting edge thinker, it does not allow for any second guessing of Mr. Dimon. It would be interesting to see what moves Mr. Dimon thought were off base, and how he might have changed the companies direction with a little more clarity. A weak criticism of a fine biography.
To purchase a copy, I added an Amazon link that should be to the upper right of this post. Enjoy.
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