Morgan Stanley IM: Wealth Transfers

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• The first part of capital allocation is investing in the business, including capital expenditures and intangible assets.
• The second part is transacting with mispriced securities, which introduces the potential for wealth transfers between stakeholders.
• Astute investors appropriately focus on a management's ability to invest in the business, but they should also pay attention to management actions with regard to buying and selling the company’s stock.

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