David R. Giroux - Capital Allocation

Praise for
CAPITAL ALLOCATION

Capital allocation is not always considered as an equal to business, operational, and people strategies even though it represents at least as much sustained economic opportunity. David Giroux takes his experiences as one of the best investors in the market and converts those insights into a veritable owners manual to value creation through capital. By doing so, he provides a simple road map for management and boards to test the efficacy of their capital strategiesand deliver best-in-class returns for their stakeholders.

Jeff Yabuki,
Former CEO, Fiserv, Inc.

Capital Allocation brings new important insights to management teams and boards of directors. A thoroughly researched and insightful book that gives practical frameworks on how a business can navigate making appropriate capital allocation decisions. David Girouxs deep credibility makes this book an invaluable resource.

Marc N. Casper,
Chairman, President, and CEO, Thermo Fisher Scientific

David Giroux is an astute investor focused on understanding managements strategic vision and assessing their ability to turn words into action. His deep investment experience, spanning decades of alpha generation, and his passion for rigorous analysis underpin his work. His book provides valuable insights and guidance for both investors and business leaders.

Dan Glaser,
President and CEO, Marsh McLennan

David Giroux, a leading portfolio manager with longstanding best-in-class performance, delivers again with an impactful work on capital allocation. By pairing clear concepts and connected real-world case studies, Giroux aims to fill the void that exists between academic theories and business press headlines. He challenges some conventional notions and provides a comprehensive framework for companies and boards to think about capital allocation. All of it, but in particular his chapters on acquisitions, should be required reading for boards, management teams, investment professionals, and students of business.

Daniel Comas,
Former CFO, Danaher Corporation; Adjunct Professor, Georgetown University

Most important decisions boards and CEOs make to deliver long-term value are: right CEO selection and talent, capital allocation, risk management, and ensuring the right culture. This is the best book I have read on all aspects of capital allocation with real-life examples as well as actionable recommendations, including how to measure the impact of decisions. I certainly learned a great deal and highly recommend Capital Allocation to both private and public company CEOs and boards.

Raj Gupta,
Chairman Aptiv PLC and Avantor Inc.; former CEO of Rohm and Haas Company, and former Board member of Vanguard Group, DuPont, HP, and Tyco

One of the leading investors of his generation, David Giroux highlights the critical role of capital allocation to corporate success. His readable and insightful stories about real companies will help you understand why some companies thrive and others falter. This is a high ROI book!

William J. Stromberg,
CEO and Chairman, T. Rowe Price

Copyright 2022 by David Giroux. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

ISBN: 978-1-26-427007-1
MHID: 1-26-427007-0

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Dedicated to Ann My wife and best friend

I have been interested in capital allocation ever since becoming an industrials analyst in 2000. During my time as an analyst, I saw firsthand the power of capital allocation to create long-term shareholder valueand destroy it. As a portfolio manager since 2006, I attribute much of my long-term success to filling my portfolio with stocks run by management teams and boards that deploy capital exceedingly well.