Howard Marks: “so I have some time now to think about things, and here are my thoughts on value investing.”
Me:
Conversation
The memo in question: oaktreecapital.com/docs/default-s
The irony, of course, is that I know enough to *not* do any investing of my own; I'm interested in the current debate over value investing purely for intellectual reasons.
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In fact, I'll go so far as to say that if you're a business operator, the part of finance that's potentially the most valuable is economic moats + capital structure. The former for obvious reasons; the latter because so much of business is really a capitalisation question.
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Capitalisation or capital allocation? Or they mean the same?
I cannot tell even after googling
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Capital structure and capital allocation is related. But I think for young businesses, capital structure is a more useful thing to study, since you usually don't have capital to allocate at the beginning.
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Exactly this. We can talk more the next time we meet; there’s a shit ton of nuance that only applies to smaller companies. (The short of it is: “if you decide to take money, what are the incentives of the people who give you that money, be it debt or equity?”)
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