All assets, whether a gold nugget or a bottle of cologne, can and should be compared to others when making purchasing or investing decisions. In the past, I’ve used some of my own private company investments such as Mount Olympus Awards and Kennon Green Enterprises to illustrate basic concepts such as profit margins, financial ratios, investment returns, and more. Today, I’m going to share part of the theoretical basis a proprietary capital allocation hierarchy we use in-house to determine every potential capital expenditure and expense.