Tuesday, February 04, 2020

Beyond the Numbers


Money making, once you release the question “what do I want to be?”, boils down to Capital allocation. Where will resources be most effectively put to work? What job will I get my money? Except money doesn’t face the existential questions we do. Where we are judged for our merit as a person by the choices we make, and the things we can do. Where respect and love are conditional. Money just does what it is told. Money makers still have a philosophy. They still face some existential questions about how to allocate Capital. Evidence mounts over time as to whether it has been well allocated, but there is a lot of noise. The holy grail is sustainable growth. Compounding over a long period of time. That requires looking beyond the numbers. At what could of happened, but didn’t. At things that have never happened before, but would be a big deal if they did. At what does happen at the core, but gets missed because we focus on the frills and glitter. Done well, Capital allocation leading to sustainable growth can free people from filtering the question “what do I want to be” through filters like “how can I make money out of this?”.




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