John - thank you for this timely contribution. As you know, I am a big fan of Marathon and its perspective on Capital Theory, and how to incorporate into many sectors. By in large, most companies and industries operate within this cyclical framework. Glenn S
Great thought provoking piece. I encourage everyone to listen.
While entrepreneurs need to understand the capital cycle as it relates to their business, the availability of capital is always key.
The core idea is that capital seeks higher returns by moving to the most profitable locations and industries, driving efficient resource allocation and boosting economic productivity. This principle, famously described by Adam Smith’s “invisible hand,” suggests that capital naturally flows to where it can generate the most value. Joseph Schumpeter expanded upon this, arguing that capital’s role is not just about efficiency but also about sparking transformative change. Entrepreneurs need capital to bring their ideas to life, and its availability shapes innovation.
It all leads back to capital being made available for entrepreneurs and so the question that I'm left pondering is whether Jack Bogle, through the introduction of passive investing, has irreparably damaged this dynamic.
John - thank you for this timely contribution. As you know, I am a big fan of Marathon and its perspective on Capital Theory, and how to incorporate into many sectors. By in large, most companies and industries operate within this cyclical framework. Glenn S
Thanks, Glenn, glad you enjoyed it!
Great thought provoking piece. I encourage everyone to listen.
While entrepreneurs need to understand the capital cycle as it relates to their business, the availability of capital is always key.
The core idea is that capital seeks higher returns by moving to the most profitable locations and industries, driving efficient resource allocation and boosting economic productivity. This principle, famously described by Adam Smith’s “invisible hand,” suggests that capital naturally flows to where it can generate the most value. Joseph Schumpeter expanded upon this, arguing that capital’s role is not just about efficiency but also about sparking transformative change. Entrepreneurs need capital to bring their ideas to life, and its availability shapes innovation.
It all leads back to capital being made available for entrepreneurs and so the question that I'm left pondering is whether Jack Bogle, through the introduction of passive investing, has irreparably damaged this dynamic.