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Q: Do you believe in the concept of "creative destruction", where you let companies go to the wall so you get better capital allocation?
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EA will bring management discipline and make better decisions in terms of capital allocation.
The problem is not so much a matter of allocating plentiful capital to the best use as of finding enough capital in the first place.In the next stage of growth, capital is relatively more abundant, so markets are better placed to take over the task of capital allocation from banks.
The goals they gave for those investments included, in descending order, enhanced profitability and sustained growth (48%), improved capital allocation (37%), improved capacity to enter new markets, enhanced process efficiency and better early warning capabilities (at least 25% each).
The economy as a whole is performing better than ever, largely because the government has at last abandoned its old habits of central planning, state-managed capital allocation, high taxes and price controls.
The other is capital allocation".
In Clarke's world, capital allocation is paramount.
It is a matter equally of capital allocation and taste.
"A careful capital allocation strategy is our risk control".
It's a very poor capital allocation decision.
"In aggregate, it really contributes a lot to the efficiency of capital allocation, and capital allocation is very important," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com