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Topic Cluster

Capital

‘Capital’ is a shorthand for ‘factors driving business finance and economic climates’, which is one of the three legs of triad mental model of business expertise. If you don’t know what that is, read this page first.

Broadly speaking, the Capital leg of the business expertise triad covers things like: P&L style thinking, capital allocation, capital structure and the relationship businesses have with capital markets. It also has to do with the ‘capital cycle’ (more broadly known as the market cycle).

It is this Capital aspect of expertise in business that Warren Buffett was referring to when he said “I am a better investor because I am a businessman, and a better businessman because I am an investor.”

Series and Guides

There is really one big series here:

Historically, Commoncog has alluded to but not focused on capital as a topic. That should change in the coming months.

‘Capital’ is a shorthand for ‘factors driving business finance and economic climates’, which is one of the three legs of triad mental model of business expertise. If you don’t know what that is, read this page first.

Broadly speaking, the Capital leg of the business expertise triad covers things like: P&L style thinking, capital allocation, capital structure and the relationship businesses have with capital markets. It also has to do with the ‘capital cycle’ (more broadly known as the market cycle).

It is this Capital aspect of expertise in business that Warren Buffett was referring to when he said “I am a better investor because I am a businessman, and a better businessman because I am an investor.”

Series and Guides

There is really one big series here:

Historically, Commoncog has alluded to but not focused on capital as a topic. That should change in the coming months.

This topic overview was last updated .

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Articles //  Page 1

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Power and Asian Business

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How to Use Power

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What is Power?

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Getting Burnt by Business Expansion

A recurring pattern that seems to show up again and again in business: expansion is dangerous, and everyone really only learns this through pain.

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Running a Fine Dining Restaurant in a Recession

How Eleven Madison Park survived the 2008 Global Recession ... and what this tells us about operating through the capital cycle.

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Learning About Moats the Hard Way

How even legendary conglomerator Henry Singleton got caught out by competitive arbitrage at the end of his career.

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The Limits of Operational Excellence

An answer to a puzzle: why is that some businesses go down the Deming path, become data driven, achieve operational excellence, and die, and others acquire Process Power and win?

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One Definition of Wisdom

Charlie Munger’s biggest business mistake, and what it tells us about wisdom.

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A Most Unlikely Master of Capital Allocation

If the most unlikely, most un-businesslike person could become a masterful capital allocator late in her life, then perhaps you could, too.

 Members only
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