This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. The great irony of the money-management industry is that while managers always claim to understand what makes a great, investible business, few have actually run a company. Most are M.B.As or chartered financial analysts—CFAs—who’ve studied businesses in the abstract, via textbooks. They understand the numbers, but have no in-the-dirt experience. Some who’ve tried to run a business—see hedge fund manager Eddie Lampert at Sears—have failed miserably because of a myopic by-the-numbers approach.