Focused Compounding Ep 423. The Warren Buffett Way: Mastering the Art of Capital Allocation
Jan 8, 2024
The podcast discusses the importance of capital allocation for public companies and how it creates value over time. It explores the Buffett test and the significance of focusing on return on capital. The hosts analyze the capital allocation of FCFS, a financial services firm, and its stock buybacks. They also discuss evaluating a company's financial position, buybacks at high valuations, strategic capital allocation, and arbitrage in stock prices.
Chapters
Transcript
Episode notes
1 2 3 4 5 6 7
Introduction
00:00 β’ 4min
The Buffett Test and Capital Reallocation
03:42 β’ 19min
Discussion on FCFS, a Fort Worth based financial services firm and its capital allocation
22:57 β’ 2min
Analyzing the Financial Position of a Company
24:56 β’ 5min
Buybacks at High Valuations and Excellent Management Team Allocators
30:06 β’ 3min
Strategic Capital Allocation and Tax Minimization
32:42 β’ 18min
Arbitrage in Stock Prices and Henry Singleton Idea
51:00 β’ 23min