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

Feature image for One Definition of Wisdom

One Definition of Wisdom

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

 Members only
Feature image for A Most Unlikely Master of Capital Allocation

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
Feature image for Data and the Capital Cycle: How Koch Became an Empire

Data and the Capital Cycle: How Koch Became an Empire

How Koch Industries became an empire. We draw on ideas from both the Becoming Data Driven series and the Capital Expertise series.

 Members only
Feature image for Marvel Studios’s Origin Story

Marvel Studios’s Origin Story

The creation of Marvel Studios was contingent on some very creative financial dealmaking. A story of superb capital expertise in action.

Feature image for Strong at Capital, Bad at Everything Else

Strong at Capital, Bad at Everything Else

Two examples of operators who were strong on the capital side of the business expertise triad, but weak in just about everything else.

 Members only
Feature image for High Roller: Lessons from America's Richest Banker

High Roller: Lessons from America's Richest Banker

Andy Beal's story is an astounding story of capital allocation, incidentally making him America's richest banker. A guest post by Frederik Gieschen.

 Members only
Feature image for Capital Allocation as an Antidote to Business Luck

Capital Allocation as an Antidote to Business Luck

The unspoken secret about new company formation is that you need to get lucky. Roll the dice, get a business outcome. Capital allocation matters because it gives you a path to winning even when you lose the initial roll.

Feature image for Building a Valuable Business? It's How You Spend It That Matters

Building a Valuable Business? It's How You Spend It That Matters

The skill of capital allocation — a mysterious, under-discussed element of remarkable business performance.

Feature image for The Capital Cycle

The Capital Cycle

What a famous investing framework — part of the modern canon of value investing — tells us about the expertise of capital in business.

Feature image for Lee Walker and the Dell Growth Plateau

Lee Walker and the Dell Growth Plateau

How Lee Walker overcame Dell's biggest growth plateau in 1986. A story about capital, imagination, and creative deal-making.