‘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.
- The Games People Play with Cash Flow
- Cash Flow is King (part of the Chinese Businessmen series)
- What the CEO Wants You To Know book summary
