Matthew Giampetroni

markets—these sublime machines that synthesize beliefs and aggregate them into prices—instantiate a secularized version of the sacred

Capital allocation should support a company’s strategic goals. Capital allocation should start with an assessment and approval of strategies and then determine which projects support the strategies.

Great capital allocators always have a sense of the difference between price and value in all of their businesses. And, as important, they are willing to act to build value when those gaps become large enough to overcome frictions such as taxes and fees.

Bernard himself continuously expresses that ‘creating desire’ is the most important part of what they are doing at LVMH

A pseudosecret is a narrative about a next-order effect within your company its path towards world domination, and the future you believe in. It’s not the most obvious narrative, but is often the most important.

Speculative investment, with ambitious but inexact expectations of financial return, is important fuel for founders who build the unknown future. However, investors and operators are often deeply misaligned: investors think in bets, while operators think in consequences. The relationship is tense, but can be explosively productive.