Quote of the Day
"Analysts don't think of themselves as accountants, and given the gap between how analysts and accountants think about the value of companies, that's not going to change. But analysts really are accountants, just accountants who prefer to develop their own rules for each company."
(Byrne Hobart)
Chart of the Day
(wsj.com)Markets
- The energy sector is still less than 4% of the S&P 500. (allstarcharts.com)
- What are to make of the big, and persistent, valuation disparities between large and small caps. (morningstar.com)
Strategy
- Good luck trying to dial risk up and down at the right times. (collabfund.com)
- Expect to see some overconfidence tonight in Detroit. (seeitmarket.com)
- There's no return without risk. (bestinterest.blog)
Tesla
- Matteo Wong, "The company still has one big advantage in the EV game. No matter their manufacturer, nearly all future EVs in America will rely on Tesla." (theatlantic.com)
- Tesla ($TSLA) needs a full-time CEO. (businessinsider.com)
- Why automakers don't use stainless steel. (wired.com)
- A good year with the Tesla ($TSLA) Model Y. (mrmoneymustache.com)
AI
- If you thought the metaverse was expensive, check out AI. (nytimes.com)
- AI is driving demand for more, bigger data centers. (wsj.com)
Private equity
- Industry concentration is one reason why your vet bills are going up. (theatlantic.com)
- How big private equity has built itself a moat. (ft.com)
- What happens when private equity takes over your pension fund. (semafor.com)
Finance
- The FMX Futures exchange is planning to take on the CME ($CME) in interest rate futures. (bloomberg.com)
- Rubrik ($RBRK) is now public. (cnbc.com)
- Venture capital has stalled in its ability to recycle capital. (axios.com)
Investment consultants
- Nearly all U.S. institutional investors work with a investment consultant. (institutionalinvestor.com)
- Investment consultants hold a lot of sway over pension funds. (klementoninvesting.substack.com)
Economy
- Q1 2024 GDP came in at 1.6% growth. (calculatedriskblog.com)
- Still no meaningful pickup in weekly initial unemployment claims. (bonddad.blogspot.com)
- Why inflation seems stuck at too high a level. (theatlantic.com)
Earlier on Abnormal Returns
- Longform links: free is never free. (abnormalreturns.com)
- What you missed in our Wednesday linkfest. (abnormalreturns.com)
- Personal finance links: knowing what you want. (abnormalreturns.com)
- Are you a financial adviser looking for some out-of-the-box thinking? Then check out our weekly e-mail newsletter. (newsletter.abnormalreturns.com)