Tuesday, July 31, 2018
In Warren Buffett’s 1965 partnership letter, he gave us a glimpse on how to think about capital allocation:
“The question always is, “How much do I put in number one (ranked by expectation of relative performance) and how much do I put in number eight?” This depends to a great degree on the wideness of the spread between the mathematical expectation of number one versus number eight. It also depends upon the probability that number one could turn in a really poor...
An Effective Capital Allocator
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Tuesday, July 31, 2018
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