Principles for Capital Allocation

European Straits | Work in Progress

Hi, it’s Nicolas from The Family. This Work in Progress edition discusses how to allocate capital if you have to optimize for low margins in our transitioning economy.

This is an edition of my newsletter European Straits accessible only to paid subscribers. The goal of the Friday Reads is to furnish ammunition to investors and financiers that will let them dig deeper on whatever topics pique their interest.

Today, I’m following a suggestion by my colleague Balthazar de Lavergne and focusing on a simple question: How should one allocate capital in low-margin businesses? This is round 1 in a series of posts related to capital allocation in general (which I plan to turn into a handbook—if there’s interest 😉) 👇