Matthew Giampetroni

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.

A more suitable mindset is that capital is accessible but comes at a cost...

many executives act as if the cash that the business generates is essentially free. The right mindset is that all capital, whether from an internal or external source, has an opportunity cost. 

Curation is a form of positional scarcity that we get whenever there’s an abundance of choice of something, and the average consumer needs help finding what they’d specifically like

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

I think of as each of us having built up an intangible asset over the previous chapters of our lives, a distributed reservoir of credibility that is held in trust by your friends, mentors, and former colleagues. Your task is now to convert that intangible asset into a tangible asset

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

the best stories to tell are the ones that have been told over and over again, and the stories of competitive mimesis and of deification followed by scapegoating are the oldest and best of all

Cash deals do better, on average, than deals funded with equity or a combination of cash and equity.36 The basic idea is that management of the buyer will finance a deal with cash if it thinks the stock of its company is undervalued and will use stock if it thinks it is overvalued. Cash deals also provide a higher payoff for the shareholders of the

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.