CFO is not X + Y....as CFO can be used multiple ways as well , infact can be lesser than overall Capex as well (as was case in 2008). The graph plots unrelated bets as percent of CFO as well as enterprise value (aggregate). Hope it clarifies
To seed, build, and nurture timeless, intangible human capitals — such as resilience, trust, truth, evolution, fulfilment, quality, peace, patience, discipline, relationships and conviction — in order to elevate human judgment, deepen relationships, and restore sacred trusteeship and stewardship of long-term firm value across generations.
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"Principal-Agent Risk is not a flaw in the system.
Thnx
CFO is not X + Y....as CFO can be used multiple ways as well , infact can be lesser than overall Capex as well (as was case in 2008). The graph plots unrelated bets as percent of CFO as well as enterprise value (aggregate). Hope it clarifies
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To seed, build, and nurture timeless, intangible human capitals — such as resilience, trust, truth, evolution, fulfilment, quality, peace, patience, discipline, relationships and conviction — in order to elevate human judgment, deepen relationships, and restore sacred trusteeship and stewardship of long-term firm value across generations.
A refreshing take on our business world and capitalism.
A reflection on why today’s capital architectures—PE, VC, Hedge funds, SPAC, Alt funds, Rollups—mostly fail to build and nuture what time can trust.
“Built to Be Left.”
A quiet anatomy of extraction, abandonment, and the collapse of stewardship.
"Principal-Agent Risk is not a flaw in the system.
It is the system’s operating principle”
Experience first. Return if it speaks to you.
- The Silent Treasury
https://tinyurl.com/48m97w5e
Really nice and insightful article.
Always get a new perspective to look at things from an aggregate level.
However, it seems that numbers don't add up in the last chart (M&A and Group Investment of listed India Inc).
Assuming PPE Capex as x and M&A and Group Investments as y
Then CFO= x+y
Take the year 2008 for instance, y= 0.24 x
Then (y/(x+y))= 0.1935
i.e. M&A and Group Investments as % of CFO should be 19.35%, but actually it is ~35%.
This is same for all years. Am I mistaken?