Money and Finance
From Ed Chancellor in his introduction to Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15:
- Five Good Questions For Edward Chancellor About The Book "capital Returns"
Link to video .................... Related book: Capital Returns Related previous posts: Investors should be thinking 90% about supply... More from Ed Chancellor on focusing on industry supply... THE TENETS OF CAPITAL CYCLE ANALYSIS ...
- Investors Should Be Thinking 90% About Supply...
In one of the interviews Edward Chancellor gave recently, he made the comment below, which I think was probably the most practical investing lesson that can be used going forward:Ed: And this interesting point is that people, I don’t quite know why,...
- Ed Chancellor On The Capital Cycle...
From his introduction to Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15, which was released in hardcover today: Typically, capital is attracted into high-return businesses and leaves when returns fall...
- Edward Chancellor Quote
Via the book Capital Account: It is an axiom of capital cycle analysis, however, that future demand is very difficult to project. Partly this is due to the problems that afflict all attempts at forecasting under conditions of uncertainty. But it is exacerbated...
- Edward Chancellor Quote
Via the book Capital Account: The turnaround of General Dynamics [from 1990-1993] and its dramatic share price performance illustrate two key aspects of the capital cycle approach to investment. First, shareholder returns are not necessarily determined...
Money and Finance
THE TENETS OF CAPITAL CYCLE ANALYSIS
From Ed Chancellor in his introduction to Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15:
The essence of capital cycle analysis can thus be reduced to the following key tenets:
- Most investors devote more time to thinking about demand than supply. Yet demand is more difficult to forecast than supply.
- Changes in supply drive industry profitability. Stock prices often fail to anticipate shifts in the supply side.
- The value/growth dichotomy is false. Companies in industries with a supportive supply side can justify high valuations.
- Management’s capital allocation skills are paramount, and meetings with management often provide valuable insights.
- Investment bankers drive the capital cycle, largely to the detriment of investors.
- When policymakers interfere with the capital cycle, the market-clearing process may be arrested. New technologies can also disrupt the normal operation of the capital cycle.
- Generalists are better able to adopt the “outside view” necessary for capital cycle analysis.
- Long-term investors are better suited to applying the capital cycle approach.
- Five Good Questions For Edward Chancellor About The Book "capital Returns"
Link to video .................... Related book: Capital Returns Related previous posts: Investors should be thinking 90% about supply... More from Ed Chancellor on focusing on industry supply... THE TENETS OF CAPITAL CYCLE ANALYSIS ...
- Investors Should Be Thinking 90% About Supply...
In one of the interviews Edward Chancellor gave recently, he made the comment below, which I think was probably the most practical investing lesson that can be used going forward:Ed: And this interesting point is that people, I don’t quite know why,...
- Ed Chancellor On The Capital Cycle...
From his introduction to Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15, which was released in hardcover today: Typically, capital is attracted into high-return businesses and leaves when returns fall...
- Edward Chancellor Quote
Via the book Capital Account: It is an axiom of capital cycle analysis, however, that future demand is very difficult to project. Partly this is due to the problems that afflict all attempts at forecasting under conditions of uncertainty. But it is exacerbated...
- Edward Chancellor Quote
Via the book Capital Account: The turnaround of General Dynamics [from 1990-1993] and its dramatic share price performance illustrate two key aspects of the capital cycle approach to investment. First, shareholder returns are not necessarily determined...