Topic: Capital Allocation
2 posts tagged “Capital Allocation”.
The Capital Allocation Hierarchy
Every dollar a business earns faces the same fork: reinvest, acquire, repay debt, pay a dividend, or buy back shares. How management ranks those choices is, over time, what separates great companies from average ones.
Buybacks: Value Creator or Value Destroyer?
Share buybacks are the most misunderstood tool in capital allocation. The test is brutally simple — is the stock below intrinsic value? — yet most buybacks happen at peaks, not troughs.