Principles of Capital Allocation

by Daryl B. Starr What is “capital allocation?” Why is understanding the first principles of this discipline important? Allow me to pontificate. Investment is a choice to bear uncertainty with an intention to realize a profit. The actions that proceed from this choice are allocation. Allocation is defined as resource assignment for a given purpose. Read more about Principles of Capital Allocation[…]

Different. Right. Boring. Crazy.

Our 32 small business owning investment partners are familiar with this slide. This slide is in the deck we use when describing the Little Engine Ventures partnership. It explains how Daryl and I try to think about business investment opportunities. We also find it is how our small business owning partners have made decisions in Read more about Different. Right. Boring. Crazy.[…]

Determining Temperament

Investors have heard what business owners already knew: temperament is more important than intelligence. I recently observed a lecture Gary Mishuris, CFA delivered at Babson College entitled “How to Learn Value Investing.” In the presentation he said, “temperament is like a basketball player’s height. You can compensate a little, but it’s really hard to change Read more about Determining Temperament[…]