Matthew Giampetroni
@matthewgiampetroni
Venture Capitalist at Velvet Sea Ventures
Matthew Giampetroni
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
Dan Callahan • Capital Allocation
Behavioral inefficiencies may be at once the most persistent source of opportunity and the most difficult to capture
Michael Mauboussin • Who Is On the Other Side?
The last round is not the permanent price, and being private does not mean you get a free pass on scrutiny.
Bill Gurley • On the Road to Recap: | Above the Crowd
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.
Michael Dempsey • Narratives & Pseudosecrets
M&A is by far the largest source of redistribution of corporate resources among the capital allocation alternatives. M&A deals in 2021 totaled nearly $2.6 trillion, or 13.5 percent of sales. The chart shows that M&A tends to be cyclical. Early movers tend to do better than companies that buy later in the cycle.
Dan Callahan • Capital Allocation
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.
Dan Callahan • Capital Allocation
Most people are rather confident of their ability to recognize bullshit and to avoid being taken in by it
Harry Frankfurt • On Bullshit
Wealth is the fundamental thing. Wealth is stuff we want: food, clothes, houses, cars, gadgets, travel to interesting places, and so on. You can have wealth without having money.