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Capital Management

1-6 out of 6 results.

Two great examples of why company management matters

It’s not only products and business models that create wealth. Management teams make decisions on how to deploy capital and such actions drive vastly different outcomes over time.

RCR Tomlinson collapse gives lessons for retail investors

Large companies supported and promoted by investment managers, brokers, analysts and investment banks have disappeared quickly sometimes. Retail investors should manage equity risk by diversification.

Overcoming loss aversion in retirement income

Loss aversion means some people avoid annuities because a premature death may lead to a loss of capital, but lifetime annuities with death benefits aim to address this problem.

Companies crying wolf

The market rewards companies it thinks allocate capital well and similarly punishes those who don’t. It tries to anticipate the future and thus the changes in future returns on capital before they happen.

Financial leverage in real estate: friend or foe?

Financial leverage is already built into many real estate funds and companies, and borrowing even more to invest can produce spectacular results - on both the upside and the downside.

Capital management techniques in LICs

Many capital management techniques are used by LICs in an attempt to narrow or eliminate the discount at which the price trades relative to net tangible assets – all with varying success.

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