Capital Allocation Focus

From this week's WealthTrack program comes an important investment tool that is largely ignored by most, except by this week's guest, David Giroux, who is an expert in picking winning stocks using Capital Allocation models.  Enjoy ... and profit.  Hope everyone had a great weekend.  

Capital Allocation Focus October 13, 2022 Dear WEALTHTRACK Subscriber, When was the last time you heard an investment discussion about capital allocation and what difference it makes to investment results? It is not a widely discussed topic on Wall Street or in the financial press.  First of all, what is it? According to Investopedia, “Capital allocation is the process of allocating financial resources to different areas of a business to increase efficiency and maximize profits.” These decisions are made by the management teams and boards of companies. They include decisions like building a new plant, expanding into a new market or geography, increasing or decreasing the research and development budget, making an acquisition, paying a dividend and repurchasing shares. The lack of attention being paid to capital allocation decisions by companies has bothered this week’s guest for years so he decided to write a book about it. It's titled, Capital Allocation: Principles, Strategies, and Processes for Creating Long-Term Shareholder Value. He is Great Investor, David Giroux, Chief Investment Officer and Head of Investment Strategy for T. Rowe Price Investment Management and the Portfolio Manager of T. Rowe Price’s Capital Appreciation Fund which he has run since 2006. If you saw part one of my recent interview with him, available on WEALTHTRACK.COM, you know that Morningstar calls him, “One of the best in the business” and a “Pre-eminent investor at the top of his game.” Since inception, Capital Appreciation Fund has more than met its long-term goals of matching the absolute returns of the S&P 500 with substantially less risk. As Morningstar says, he has done it by “...relying on savvy stock picks to spur the fund’s performance.”  A major part of Giroux’s process of picking stocks is analyzing how they allocate capital. In this weekend’s episode we will learn why capital allocation decisions are so important to investment success.  We also have an exclusive EXTRA feature with the incredibly busy portfolio manager, who will explain how he found the time to write Capital Allocation.  If you miss the show on public television, you can watch it on our website over the weekend, along with all of our past programs and our guests’ One Investment recommendations.  You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify. Have an invigorating weekend and make the week ahead a healthy, profitable and productive one! Best regards, Consuelo Facebook Twitter WEALTHTRACK Site YouTube Channel As always, if you miss this week’s program, it will be available on our website. Also, I want to thank all of you who are following me on Twitter For those of you active on Facebook: You can connect with us on our Consuelo Mack  WEALTHTRACK  page.