My mid-week morning
train WFH reads:
• Why Even The Most Elite Investors Do Dumb Things When Investing. The bottom line is that these investment managers are failing to maximize returns for their clients. Without some changes to improve their selling decisions, they’d be better off strictly focusing on buying stocks and letting “a robot manage their selling decisions,” Schmidt says. (NPR)
• Flowering Among the Ruins: Why Emerging Markets Are Poised for a Revival This battered asset class should benefit from a host of new developments—such as a weaker dollar. (CIO)
• Mauboussin: Everything Is a DCF Model: A Mantra for Valuing Cash-Generating Assets. This is important because an investor, from a venture capitalist to a manager with a portfolio of large-capitalization stocks, owns partial stakes in businesses. The value of those businesses is the present value of the cash they can distribute to their owners. This suggests a mindset that is very different from that of a speculator, who buys a stock in anticipation that it will go up without reference to its value. Investors and speculators have always coexisted in markets, and the behavior of many market participants is a blend of the two. But it is useful to keep in mind that these are separate activities (Morgan Stanley)
• A Genius Plan for Amtrak What the beleaguered operator should do with $66 billion from Congress. (Slate)
• Who‘s afraid of the bad Big Tech? Central banks, that‘s who. Now the BIS suggests watching them like big banks. (Financial Times)
• Go Big, Then Stop What I’m talking about is a savings philosophy so effective that it can put your future finances on easy mode. It can help you to build wealth for decades while you literally do nothing. It may just be the lowest effort way to set yourself up for a nice retirement. How does it work? You save as much as you can as early as you can, then you stop saving altogether (if you want). Go big, then stop. (Of Dollars And Data)
• HIPAA, the health privacy law that’s more limited than you think, explained You probably don’t know what HIPAA really means. Let’s fix that (Vox)
• White Evangelicals Resist Covid-19 Vaccine Most Among Religious Groups Nearly one-quarter don’t want shot, new study finds, and church leaders face hurdles persuading them (Wall Street Journal)
• Beware the moon’s wobble The result is a reoccurring cycle lasting 18.6 years that has a huge effect on tides. For half that cycle, the moon suppresses the tide. But for the other half, it amplifies it. It’s that second half, combined with the rise in sea levels, that will cause the frequency of coastal flooding to skyrocket in the 2030s. When exactly this will happen depends on the location. But it will happen in every coastal community eventually. The time to prepare is now. (Washington Post)
• Inside L.A.’s Ultimate Mid-century Modern Home The story behind an icon of California bliss, featuring images from the new book The Stahl House. (Vanity Fair)
Be sure to check out our Masters in Business interview this weekend with Dr. Charity Dean. Dean was the director of the California Department of Public Health in 2020. She is a lead character in Michael Lewis’ book The Premonition: A Pandemic Story; Lewis called her “one of the people who saw the real danger of the virus before the rest of the country did.” She is co-founder of The Public Health Company.
New Listings Stage a Comeback in June
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