Michael Mauboussin: The Five Principles of Good Capital Allocation

Johnny HopkinsMichael MauboussinLeave a Comment

We’ve just been re-reading Michael Mauboussin’s great paper on capital allocation titled – Capital Allocation Evidence, Analytical Methods, and Assessment Guidance. At the end of the document Mauboussin provides his five principles of good capital allocation and his conclusions. Here’s an excerpt from the paper: Five Principles of Capital Allocation. In their book, The Value Imperative, James McTaggart, Peter Kontes, … Read More

How To Identify Great Capital Allocators

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During his recent interview with Tobias, Jake Taylor of Farnam Street discusses how investors can spot great capital allocators, saying: – But having said all that yeah there’s so many great cap allocators out there. You know obviously Buffett and Munger are the gold standard at Berkshire. But you have so many really smart people who are doing this right … Read More

Jake Taylor of Farnam Street on The Acquirers Podcast Episode 2: Charlie Munger and The Rebel Allocator

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In Episode 2 of the The Acquirers Podcast, Tobias chats with Jacob “Jake” Taylor of Farnam Street Investments. During the interview Jake talks about his new book – The Rebel Allocator, and discusses the secret sauce of business success and investment returns – good capital allocation. He also provides some great insights into: What to do when you get a … Read More

Michael Mauboussin – Share Buybacks Are A Better Alternative For Shareholders Than Dividends

Johnny HopkinsMichael MauboussinLeave a Comment

There is much debate about whether companies should increase shareholder value by repurchasing their shares or returning excess cash to shareholders by way of dividends. One of the best papers written on the subject is Share Repurchase From All Angles, by Michael Mauboussin where he makes the case for share buy-backs over dividends as the best method of adding value for … Read More

Henry Singleton – (“The Best Capital Deployment Record In American Business” – Warren Buffett)

Johnny HopkinsHenry Singleton, Warren BuffettLeave a Comment

One of my favorite investing books is The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success, by William N. Thorndike. In fact it’s also the top choice on Warren Buffett’s reading list. The book provides stories on eight of the most successful CEOs in history who were great capital allocators. One of my favorite chapters is on Teledyne CEO Henry … Read More