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What Private Equity Thinks About Property Management with Brent Beshore

Peter Lohmann's Podcast

CHAPTER

Understanding Opportunity Costs in Capital Allocation

The chapter dives into the importance of comprehending opportunity costs within a business portfolio and how to strategically allocate capital to projects based on these costs. It emphasizes the significance of owner discretion in managing cash flow, reinvestment in the business for ROI analysis, and considering different investment opportunities. The speakers stress the need for business owners to adopt a mindset of being capital allocators and to consider their opportunity costs when deciding how to use excess cash for high returns.

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