Forum Topics Capital allocation
dave665
6 months ago

Something I’ve always found strange is how many companies management through interviews or through company announcements either won’t talk or speak briefly on how they approach capital allocation, where it really is one of the major roles as management. I have recently watched the connexion CEO interview where this was mentioned (26:30), the CEO did use to be a manage a fund and may be a reason behind this.

I was curious as to what other companies’ people have found in the ASX microcaps where capital allocation is more openly talked about by management? Also, just others thoughts if this does bring greater shareholder returns?

15
Strawman
6 months ago

I reckon capital allocation and culture are the two major jobs of a CEO @dave665 (at least for a company of a sufficient size).

Mike at Stealth is a good example, and has spoken about this with us previously.

16
dave665
5 months ago

Yeah ill have to agree with you there and ill have a better look at stealth.

A company i have now sold, KPG is another one that really tries to get there capital allocation known and also gives alot of metrics that value investors seem to love. It seems to be driving force as to why the share price and especially valuation metrics have went up so much in the past few years.

It is something i always look out for while reading announcements or watching CEO interviews.

5