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Capital Returns: Investing Through the Capital Cycle: A Money Manager?s Reports

Capital Returns: Investing Through the Capital Cycle: A Money Manager?s Reports

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About the Book

This book provides expert, example-driven guidance on the crash-beating capital cycle approach to investing, successfully deployed by marathon asset management over the past two decades./b> br>We live in an age of serial asset bubbles and spectacular busts. Economists, policy make Rs, central bankers and most people in the financial world have been blinded by these busts, while investors have lost trillions. Economists argue that bubbles can only be spotted after they burst and that market moves are unpredictable. Yet marathon asset management, A London-based investment firm managing over $50 billion of assets has developed a relatively simple method for identifying and potentially avoiding them: follow the money, or rather the trail of investment. Bubbles whether they affect a whole economy or merely a single industry, tend to attract a splurge of capital spending./br> excessive investment drives down returns and leads inexorably to a bust. This was the case with both the technology bubble at the turn of the century and the US housing bubble which followed shortly after. More recently, vast sums have been invested in mining and energy. From an investor's perspective, the trick is to avoid investing in sectors, or markets, where investment spending is unduly elevated and competition is fierce, and to put one's money to work where capital Expenditure is depressed, competitive conditions are more favourable and, as a result, prospective investment returns are higher. This capital cycle strategy encourages investors to eschew the simple 'growth' And 'Value' Dichotomy and identify firms that can deliver superior returns either because capital has been taken out of an industry, or because the business has strong barriers to entry (what Warren buffet refers to as a 'moat'). br>Some of marathon's most successful investments have come from obscure, sometimes niche operations whose businesses are protected from the destructive forces of the capital cycle. Capital return


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Product Details
  • ISBN-13: 9781349959020
  • Publisher: Palgrave MacMillan
  • Binding: Hardcover
  • Language: English
  • Weight: 449.9999996 gr
  • ISBN-10: 1349959022
  • Publisher Date: 01 Jul 2019
  • Height: 39.99992 mm
  • No of Pages: 211
  • Width: 139.99972 mm

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