““However, the typical representation of an investor is someone who mostly looks at prices when planning his or her actions; price-only investors tend to underperform value investors. Effective investors, on the other hand, think like businesspeople, allocating capital within the firm to projects with high expected returns. Allocators—individuals making calculated capital allocations to projects or firms—play a vital role in growing the economy for us all by directing resources to the most effective value-creating organizations. We would all be better off if more investors thought like allocators.””
