Capital allocation is a huge part of success in business.
In my time in business, dealing with the people who allocate the capital (PE, VC etc.) I’ve been underwhelmed at the balance between value-add in the business, and financial engineering to drive a financial return through appearance.
Not all, but the majority, for sure.
With financial engineering, you can change a P&L, a balance sheet, and, over time, a company valuation.
Without actually making things much better.
Some aspects of the world, like the environment, are not governed by made up human laws, they are governed by natural laws, laws of physics, laws of science.
Some aspects of the world can’t be ‘engineered’ to appear better; we must focus on the fundamentals to actually improve them.
It starts with applying the right type of thinking in the right areas.
That’s why a more socially minded governing body is required… a government that plays the long game, even if people don’t like it in the short term.