Capital Allocation: Principles, Strategies, and Processes for Creating Long-Term Shareholder Value

David R. Giroux

10/2021 · McGraw Hill Professional

Táto e‑kniha

Seize the competitive edge through intelligent, differentiated capital allocation

The intelligent deployment of capital is one of the most effective ways to create long-term value. But despite this, there are very few capital allocation experts on the boards of the largest publicly traded companies, and academic research consistently finds that most firms deploy capital sub-optimally.

Capital Allocation aims to educate senior leaders, board members, investors, students, and anyone interested in business on this important topic. Until now very little has been written on capital allocation outside of academia, even though the strategic deployment of excess capital is an increasingly significant source of competitive advantage for many companies.

David Giroux, Chief Investment Officer for Equities and Multi-Asset and Head of Investment Strategy at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimal capital structure, capital allocation alternatives, mergers & acquisitions, and special situations. Capital Allocation walks you through this critical topic from beginning to end, including:

• Stories of companies that allocated capital in ways that created significant shareholder value
• Several real-life decision-making models you can use for strategically allocating your firm’s capital
• Guidelines for generating high returns in the long term to build sustainable shareholder wealth

Giroux uses academic research, personal experience, and uncomplicated mathematics to reveal approaches and actions that create long-term value. He provides case studies from Kodak, Comcast, Thermo Fisher Scientific, Danaher, General Electric, Microsoft, and others showing how capital allocation has―and hasn’t―worked in real-life situations. And he shows how to use capital allocation to head off possible activist investors.

Capital Allocation offers everything you need to know for deploying capital wisely to outperform your competitors over the long term.

O autorovi

David Giroux is Chief Investment Officer for Equities and Multi-Asset at T. Rowe Price. He also serves as Head of Investment Strategy and Portfolio Manager for the Capital Appreciation Fund, which has been ranked in the top one percentile in both Morningstar and Lipper peer rankings. A Chartered Financial Analyst, Giroux is a two-time winner and five-time nominee for Morningstar Manager of the Year, and a 13-time winner of Lipper’s Best Fund in Category award. In 2005, he was named Best of the Buy Side Capital Goods/Industrials winner by Institutional Investor.