Saved by Matthew Giampetroni
Capital Allocation
A capital allocator would need to have two things happening simultaneously.
- Limited fund size: The fund would need to be $150M or less, or otherwise, you’ll be back to being wholly subject to the power law.
- Equity optionality: Investors in a startup utilizing this product need to be able to get returns even if the outcome is smaller. That would req
Evan Armstrong • Venture Capital Is Ripe for Disruption
[It] Enables the Corporation to direct the placing of additional capital where it will result in the greatest benefit to the Corporation as a whole.
Alfred P Sloan Jr. • My Years With General Motors
3. Properly assess strategy (or how a business makes money).
Dan Callahan • Reflections on the Ten Attributes of Great Investors
Investors generate excess returns when they buy the shares of companies prior to a revision in expectationsabout future cash flows. A key determinant of cash flows is a company’s ability to allocate capital toinvestments that create value. The current principles of accounting do a poor job of separating investmentsand expenses, creating a veil that... See more