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Capital Allocation: Principles, Strategies, and Processes for Creating Long-Term Shareholder Value

David Giroux

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Seize the competitive edge through intelligent, differentiated capital allocation The intelligent deployment of capital is one of the most effective ways to create long-term value. But despite this, there are very few capital allocation experts on the boards of the largest publicly traded companies, and academic research consistently finds that most firms deploy capital sub-optimally. Capital Allocation aims to educate senior leaders, board members, investors, students, and anyone interested in business on this important topic. Until now very little has been written on capital allocation outside of academia, even though the strategic deployment of excess capital is an increasingly significant source of competitive advantage for many companies. David Giroux, Chief Investment Officer for Equities and Multi-Asset and Head of Investment Strategy at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimal capital structure, capital allocation alternatives, mergers & acquisitions, and special situations. Capital Allocation walks you through this critical topic from beginning to end, Giroux uses academic research, personal experience, and uncomplicated mathematics to reveal approaches and actions that create long-term value. He provides case studies from Kodak, Comcast, Thermo Fisher Scientific, Danaher, General Electric, Microsoft, and others showing how capital allocation has―and hasn’t―worked in real-life situations. And he shows how to use capital allocation to head off possible activist investors. Capital Allocation offers everything you need to know for deploying capital wisely to outperform your competitors over the long term.

GenresFinance

480 pages, Hardcover

Published December 7, 2021

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David Giroux

6 books1 follower

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Displaying 1 - 3 of 3 reviews

Tab Williams

134 reviews6 followers

January 21, 2022

I enjoyed this book, but it wasn't life changing. Giroux makes some wonderful points on capital allocation, but nothing is new. That said, he does an excellent job of aggregating thoughts into a cohesive framework, which I think is useful. There are lots of good frameworks and models that I will put to use. This would have been more impactful for someone starting out there career, but it is a good reminder and summary and a book I am sure to revisit many times over the year.