#60 Torbjörn Arenbo: Capital Allocation and Value Creation

This podcast reviews Torbjörn Arenbo's book, "Capital Allocation and Value Creation," focusing on its application for corporate leaders. The discussion covers the book's origins, key concepts like the three value drivers (growth, profitability, cost of capital), and common pitfalls in capital allocation, particularly concerning acquisitions. Specific examples of successful and unsuccessful capital allocation strategies from various companies are analyzed, highlighting the importance of understanding risk and aligning incentives with long-term value creation. The podcast concludes with book recommendations from the author and insights into the challenges corporate executives face in grasping capital allocation concepts.