Matthew Giampetroni
@matthewgiampetroni
Matthew Giampetroni
@matthewgiampetroni
People on the outside sometimes wonder why businesses with so few traditional assets seem to require so much financing. Well, they are accumulating assets: users are the new assets, and their use is what you’re out to monetize.Whatever your business model is, acquiring users is the new building factories.
Start-ups of any kind are awash in ambiguity. It’s the founder’s responsibility to hold that ambiguity for everyone, which is often a lonely job.
The research shows that companies that are more proactive in their internal resource allocation generate a higher ROA than those that are more conservative.
There is also evidence that companies that are good at internal capital allocation are also effective at external allocation
In an ideal world, corporate executives would allocate capital to maximize long-term value per share. But, for reasons that are mostly understandable, there’s a lot of evidence that they fall short of this objective
in a world with infinite information and opportunity, you don’t grow by knowing or doing more , you grow by the ability to correctly focus on less