Mechanism

Counter-Cyclical Capital

TL;DR

Invest heavily during busts (when assets are cheap) and restrain investment during booms (when assets are expensive) - the opposite of most competitors.

Financial Strategies

The company that grows slowest during booms often survives longest across cycles.

Business application of biological bet-hedging principles, where organisms invest resources counter to current environmental conditions to prepare for inevitable reversals.

Business Application of Counter-Cyclical Capital

Invest heavily during busts (when assets are cheap) and restrain investment during booms (when assets are expensive) - the opposite of most competitors. Rio Tinto accelerated Pilbara construction during 2008 crisis, building mines for $500M that would cost $800M during booms. When demand recovered, they had capacity competitors couldn't match.

Related Mechanisms for Counter-Cyclical Capital

Related Companies for Counter-Cyclical Capital

Related Organisms for Counter-Cyclical Capital

Related Frameworks for Counter-Cyclical Capital

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