Capital Account Book

The podcast revisits Marathon Asset Management's 2004 book, *Capital Account*, focusing on its capital cycle analysis framework and its relevance to current market conditions. Charles Carter, a European portfolio manager at Marathon and contributor to the book, discusses the book's origins and key insights. The conversation highlights the book's contrarian views during the late 1990s TMT boom, emphasizing the dangers of short-term earnings obsessions and flawed investment banker incentives. Examples such as Enron's earnings manipulation and the over-investment in telecom infrastructure are examined. The discussion draws parallels between the late 90s and today's AI boom, cautioning against excessive capital spending, overblown growth forecasts, and the prevalence of "fake news" in investment narratives.