Well now, that’s a mighty interesting question …
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220: Management Quality vs Tangible/Intangible Assets, Growth vs ROIC, Nvidia BlueField-2, Snowflake vs AWS, F-14 Birthday, and Economic Value of Aging libertyrpf.com/p/220-manageme
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Singleton was not dealing with PP&E. He was dealing with cheap and expensive capital. He bought back the former and issued the latter, and compounding took care of the rest.
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Yeah but the question is still valid, isn’t it? Rephrased: is top-tier capital allocation ability a bigger deal when you’re dealing with software/high-intangibles businesses?
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I think for cap allocation mispricing matters more than tangible vs intang. So Singleton would be effective in any industry where it exists. One adv of tangible is that it is usually more capital intensive, so much more capital can be absorbed if deployment opportunity exists.
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