Rishi Sunak Chosen to be New UK Prime Minister by Mark Osborne: History has been made in the U.K. this week. In choosing Rishi Sunak as national leader of the Conservative party, he became the country's third Prime Minister of 2022, the youngest in 200 years, and, perhaps most notable, the first person of colour to lead the U.K.in history.
Why Fundamentals Matter by Jamie Catherwood: “However, investors should remember that companies primarily generating returns from multiple expansion are susceptible to wild swings because this is the least tangible source of total return. A company’s earnings don’t change on a whim, but investors’ willingness to pay higher multiples for the same stock do.
This is a great irony of the speculative feedback loop described earlier. When asset prices are rising, investors typically require less conviction or belief in an asset to purchase it. When prices are falling, however, investors meticulously study the merits of an investment and make sure they have strong conviction in its prospects.
When that happens, it’s often too late to try and increase earnings or bolster other important fundamentals that were left ignored for far too long.”
Six Recent Discoveries That Have Changed How We Think About Human Origins by Penny Spikins: My big takeaways are: there appears to have been up to 21 different species of humans - we have interbred with at least several of them; and how much the environment shaped our evolution.
How Natural Gas Storage Works and Why Europe Faces a Tough Winter by Sal Gilbertie:
“What is predictable is that Europe will run out of stored gas this winter earlier than most authorities are publicly admitting. Most important of all, Europe will not be able to adequately refill its gas storage facilities next summer, meaning next winter has the potential to be a catastrophic economic and human tragedy.
Sadly, today’s harsh reality is that this winter will be tough, but one year from now Europe could be facing the equivalent of an unemployed consumer with barely enough savings to obtain basic necessities and nothing more.”
The World is Awful. The World is Much Better. The World Can Be Much Better by Our World in Data: Last month, I shared an article on how life has dramatically improved for the average human. This article builds on that point, but adds context.
“The world is awful, this is why we need to know about progress.
The news often focuses on how awful the world is. There is a large audience for bad news and it is easier to scare people than to encourage them to achieve positive change.
I agree that it is important that we know what is wrong with the world. But, given the scale of what we have achieved already and of what is possible in the future, I think it’s irresponsible to only report on how awful our situation is.
To see that the world has become a better place does not mean to deny that we are facing very serious problems.”
Focus to Win by Farnam Street: The title says it all.
Morgan Stanley Says Bottom Near for Emerging-Market Equities by Bloomberg: Morgan Stanley believes emerging-market (EM) equities have brighter days ahead. If they’re right, our portfolios will benefit as we are overweight EMs. They are currently cheaply valued and should grow faster than the developed world over the coming decades.
All the Personal-Finance Books Are Wrong by Derek Thompson: Really interesting article on how economic theory, even when sound, often fails to take human emotions into account, which can lead to poorer results.
It reminded me of Naval Ravikant’s advice on building habits: “...choose consistency over content. The best book is the one you can’t put down. The best exercise is the one you enjoy doing every day. The best health food is the one you find tasty. The best work is the work you’d do for free."
Perhaps a Visit to Wisconsin is in Order…
Do the Right Thing by The Browser: You know an article has affected you when it sends you down multiple rabbit holes. This article on rationalism did that for me. I’ve not only expired a number of websites it cited, I’m also now reading Map and Territory, a book it mentioned. Odds are it won’t stop here.
Though I’ve always been drawn to rationalism, it seems even more important today, where the truth seems under assault from all sides. Clear, rational thinking may never have been more important than it is now.
Italy has 334 ‘Most Beautiful’ Villages. Can Their Beauty Survive?: Italy has a shocking number of “beautiful villages” with crumbling infrastructures that are fighting depopulation.
Stoicism for Modern Stresses: 5 Lessons from Cato by Ryan Holiday: Five lessons from one of the most famous and courageous of all stoics. 1) Master the power of gestures; 2) Don’t compromise—ever; 3) Fear nothing; 4) Use pain as a teacher; 5) Don’t expect to control your legacy.