Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15

Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15

Edward Chancellor / Apr 22, 2021

Capital Returns Investing Through the Capital Cycle A Money Manager s Reports We live in an age of serial asset bubbles and spectacular busts Economists policymakers central bankers and most people in the financial world have been blindsided by these busts while investors ha

  • Title: Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15
  • Author: Edward Chancellor
  • ISBN: 9781137571649
  • Page: 117
  • Format: Hardcover
  • We live in an age of serial asset bubbles and spectacular busts Economists, policymakers, central bankers and most people in the financial world have been blindsided 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 iWe live in an age of serial asset bubbles and spectacular busts Economists, policymakers, central bankers and most people in the financial world have been blindsided 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 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 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 Buffett refers to as a moat 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 Returns is a comprehensive introduction to the theory and practical implementation of the capital cycle approach to investment Edited and with an introduction by Edward Chancellor, the book brings together 60 of the most insightful reports written between 2002 and 2014 by Marathon portfolio managers Capital Returns provides key insights into the capital cycle strategy, all supported with real life examples from global brewers to the semiconductor industry showing how this approach can be usefully applied to different industry conditions and how, prior to 2008, it helped protect assets from financial catastrophe This book will be a welcome reference for serious investors who looking to maximise portfolio returns over the long run.

    • [PDF] ↠ Free Download ☆ Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15 : by Edward Chancellor Ê
      117 Edward Chancellor
    • thumbnail Title: [PDF] ↠ Free Download ☆ Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15 : by Edward Chancellor Ê
      Posted by:Edward Chancellor
      Published :2021-01-09T10:27:36+00:00

    About "Edward Chancellor"

      • Edward Chancellor

        Edward Chancellor Is a well-known author, some of his books are a fascination for readers like in the Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15 book, this is one of the most wanted Edward Chancellor author readers around the world.


    559 Comments

    1. It provides a new perspective to look at investment opportunities. I learned 3 things here1. analysts should focus more on the supply side than the demand analysis of industries; demand side is moving by so many factors, while supply side has less uncertainty2. on cyclical sectors, we should invest when there is no new capital coming in; one of the articles talked about the cod fishing industry and how the supply changes with new investment coming in3. if you find management who are good at capi [...]


    2. Provides a much needed lens to view, understand and (hopefully) benefit from the cycles playing out across sectors. Just what the doctor ordered.


    3. One of my all time favoritesDo yourself a favor and enjoy the writing of the Marathon team. Thought provoking as only they can deliver. Jan


    4. A very nice book talking about the supply side economics driven by Schumpeter's famous argument around "creative destruction". The book highlights that instead of focusing on Demand (which is subject to narratives and large variations around estimates), one should try and focus on Supply (which can be quantified) depending on what competitors are doing. Prisonner's Dilemma is another thought which leads to generally "tit for tat" behaviour amongst peers. A lot of examples in industries like COD, [...]


    5. Intelligent, but mostly over my head (at least at the rate I read this book, which was in turn driven by its seemingly low amount of actionable material). The introduction was quite useful and the rest of the book might be useful to stock pickers, but for a mutual fund user like me the introductory chapters were the only useful ones. That being said, the introductory chapters were more actionable than many of the other money books I've read.


    6. Since I read Capital Returns, I can feel the impulses flowing in and out of my neurons more than ever before it started to normalize back to its mean rate. Therefore, before my return on neuron employed (RONE) falls below my cost of neuron (CON), I need to employ my neurons elsewhere i.e reading books with still abnormally high RONE. I found out that Capital Returns has a predecessor called Capital Account. The problem is that it is very hard to get hold of that book. Anyone can help me?


    7. Awesome book for the serious investor. Lots of great insights and interesting examples. Only bad thing about the book was the last chapter of letters from a fictitious investment banker, which I advise readers skip entirely.


    8. An important book for all fundamental investors to read. Explains the causes and ultimate resolution of the capital cycle using clear examples.



    9. How outstanding could memos or letter possibly be? This compilation of letters is outstanding.The fund's approach to investing is by following the capital cycle - an unusual approach, but I guess it has worked for them. In effect it is a contrarian approach.The best bits were on the banking industry and China.But the entire book is a gem - each letter is enlightening and gets the reader/ investor thinking about risk that he may have overlooked.The fund is inherently cautious in its approach and [...]



    10. Read the book a second time. Skipped over some segments as I remembered those. Their perspectives on the capital cycle is undoubtedly unique.






    Leave a Reply