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The Importance of Capital Allocation
Great capital allocators focus intensely on maximizing per share value rather than just simply growing the company's overall value through maneuvers like overpaying for acquisitions or investing in projects that provide a really low return. Outsider CEOs are essentially the polar opposite of the charismatic CEO that you see in the press all the time. These outsider CEOs understood the numbers behind their investments and generally they were better than average at distinguishing a good investment from a bad one.