Warren Buffett is widely considered to be the best investor that ever lived. However, while the Oracle of Omaha does have an excellent track record of picking investments, his skill at allocating capital has been arguably more important to his and Berkshire Hathaway's success over the long run.
Effective capital allocation is a skill every investor should have. If one cannot allocate capital effectively to the best investment opportunities, making the most of available resources and investment opportunities will be challenging.
After all, investors are only likely to see a handful of really great investment opportunities throughout their careers. It's essential to capitalize on these when they emerge, acting quickly and with conviction to take advantage of the opportunity.
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