10 Thursday AM Read – The Big Picture

my morning the train WFH reads:

The interest rate pain from high inflation has only just begun: Stocks, houses, corporate borrowers and the federal Treasury may not be ready for a world of much higher real interest rates (Wall Street Journal)

A Warren Buffett protégé strikes out on his own: Tracy Britt Cool worked closely with the famous investor for a decade. He is now applying those lessons to his own firm. (New York Times) see more In times of stress, female fund managers take less risk than men — for the same performance Fund investors aren’t compensated for the higher risk that male managers take, according to new research. (Institutional Investor)

Good damage, bad damage: not all damage is created equal: Investors must look past simple measures of profitability to understand a business’s true ability to create value. The rise of intangibles means that more investments than ever are immediately expensed versus capitalized, making today’s financial statements look distorted than in the past. Academics distinguish between GAAP losers, companies that have losses but high returns on investment, and true losers, or those that have expenses unrelated to investment that exceed sales. Evidence from recent decades shows that GAAP losers produce attractive total shareholder returns compared to actual losers and profitable companies. (Compatible Observer)

BofA survey shows complete investor capitulation amid pessimism Global growth optimism at all-time low: Fund manager survey BofA says inflation is slowing but sentiment remains subdued. (Bloomberg)

Mergers destroy value. Nothing will change without reform: The M&A playbook of perverse incentives, rent-seeking and creative accounting is due for a rewrite. (Financial Times)

$48 billion worth of wealthy Chinese want to leave – but will Xi let them? About 10,000 wealthy Chinese are looking to leave in the wake of the punishing lockdown and economic slowdown. The question is whether they can. (Bloomberg)

A shark expert tells us to stop fearing shark attacks and sightings: ‘If sharks wanted to eat us, they would’ on average only 70 shark attacks a year in the world. (grid)

The strange bird that breaks the tree of life: Darwin believed that family trees could explain evolution. Hoatzin suggests otherwise. (The New Yorker)

As professionals flee anti-abortion policies, red states face a brain drain However, early indications are that they may create new barriers to hiring workers whose skills and qualifications allow them to choose from multiple job opportunities. (Los Angeles Times)

A strange trick by Meryl Streep: It’s amazing how many times our most famous film actress has made her performance one of the most hackneyed bits of the form. I now follow this trend not with disbelief, but with reverence. (New York Times)

Be sure to check out our Masters in Business interview this weekend with Graham Weaver, founder and partner at Alpine Investors, a private equity firm in San Francisco that invests in software and services and manages nearly $8 billion. Weaver holds an MBA from Stanford GSB and a BS in Engineering from Princeton. He started Alpine in his dorm room at Stanford’s Graduate School of Business, where he is now a lecturer, teaching both management and entrepreneurship.

Wage Growth Tracker 6.7%

Source: Federal Reserve Bank of Atlanta

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