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MANAGEMENT: Investing Decisions: Capital Strategy

"Profitability is the Key to Value. If You've Got it, Flaunt It. If You Don't Have It, Get It (business strategy). If You Can't Get It, Get Out (capital strategy)."

--- Bill Fruhan, Professor of Finance, Harvard Business School, author of: Financial Strategy: Studies in the Creation, Transfer, and Destruction of Shareholder Value.

Capital Strategy: Investing in Growth Opportunities (Positive Net Present Value Investing Opportunities) - committing the least amount of capital at the widest capital spreads (between expected returns and the cost of capital) for the longest periods. PNPV Considerations: Growth (how big), Duration (how long) and Risk (how great, relative to alternative investments).

A bad financing won't kill a good investment - but a good financing won't rescue a bad investment.

CEO   (Corporate Culture, Ethics, Leadership)






Shareholder Value

Venture Capital

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