Research paper from author and strategist Michael Mauboussin.
Summary: “The prime responsibility of a management team is to invest financial, physical, and human capital at a rate in excess of the opportunity cost of capital…buybacks can be more attractive than investing in the business.”
Summary:
The prime responsibility of a management team is to invest financial, physical, and
human capital at a rate in excess of the opportunity cost of capital.
Executives should always seek to allocate capital to the opportunities with the highest
returns.
Buybacks can be more attractive than investing in the business.
asfasdfasdf