A capital allocation everyone has an opinion on and nobody has modelled together.
Capital allocation and investment evaluation, where the assumptions matter more than the arithmetic and usually go unrecorded.
When this comes up
- Capital allocation
- Investment evaluation
- Budget trade-offs
Templates for finance & investment
Allocating capital across bets
Split capital across competing internal bets with the assumptions behind each one written down.
Evaluating an investment
Assess an investment against explicit criteria and record the assumptions the case depends on.