Capital Allocation

“They're generally better managers, and they're generally better at capital allocation than you see outside the US.”

“As a CEO, you have only a few levers of how you can create a lot of value over time. I personally believe number one is who you surround yourself with, who's on the team, how does the team work with you together. Number two is capital allocation, where you hav…”

“The big, Myth of the UK right now is that we have a capital problem. We do not have a capital problem. We have a capital allocation problem. Our money is in our houses and it's overseas.”

“Separately at ten million, the problems that you face start to be really problems of capital allocation, and that's where we can help the most.”

“I do agree that the best CEOs are exceptionally good capital allocators, but I don't think it's the most important part of a CEO's job. I think it is an important job, but by far not the most important. I think more important is to drive the culture. You drive…”

“And so you can write the best write up you want, make the most amazing model that's accurate down to the penny. But if management goes out and blows all their cash on a terrible acquisition, they just destroyed a tremendous amount of value. So getting to know …”

“And the idea of Of zero percent interest rates or low interest rates. That meant there was no such thing as a bad idea. And any possible idea that you had, had no pushback on it from needing to service the debt. So the capital allocation decisions That we have…”

“Balancing capital and resources against short and long term is, is the hardest, the most important part of the job.”

“The founders are super humble, and have generally had to do a lot more with, ah, with less, which has just created amazing durability in terms of the company. So, just really impressive Capital allocation. And the companies, you know, many of these companies h…”

“It's just terribly inefficient to have any doubt, like zoom in and make these microscopic decisions about who to hire or like an individual person's salary or stuff like that. It's just crazy to me. Instead, they need to allocate to basically an entrepreneur, …”

“I think in a software business, product development is your capital allocation function. How you determine how you deploy your engineering resources is your, the idea of being a great capital allocator.”

“We don't have a shortage of money. We have a shortage of capable people who know what to do with that money.”

“And the best rule of thumb that I learned was if this management team was good at allocating capital, before I walked in the door, the assumption that they would continue to be good was a really good assumption. And if they were really bad at it, no matter wha…”

“This is where I think at, like, I can't be a CEO of a million dollar or a hundred, ten million dollar, a hundred, or even billion dollar company, because That's about functional competence. But when a company becomes ten billion dollar plus, it's all about cap…”

“Is there diversity on the board? Again, not because it's the right thing to do, because it's the right business thing to do. It leads to better risk management. It leads to better capital allocation.”

“Really talking to CFOs on the ground and CEOs on the ground is really where you understand where the pressure points are in a system, and it actually helps you allocate capital better.”

“As soon as you start within a particular industry category to use AI and get benefit from it, the increased profits you get, you reinvest into more AI. Which means your competitors have to follow suit. So you can't now, now build an Xbox video game without ton…”

“When I was in private equity, I was the associate in charge of handling sort of the mail would come in and you get. 15 companies to look at and you'd pick one and you'd go bid and there'd be 50 other bidders on that. And that just never struck me as an efficie…”

“If your model is forecasting low, that's as big a problem for your ability to actually allocate your capital in a really smart way as if your forecast is coming in wrong the other way.”

“I think the very central idea that, you know, like sort of markets are better than markets, individuals better than institutions, et cetera. You know, I do, I think that's dead, and I think the world really wants institutional, wants to go back to sort of inst…”

“As a CEO, as your company grows and scales, your job becomes more about capital allocation and where you're placing your bets, right?”