Weekend Reading – Summer Slowdown
As is tradition, the pace of Weekend Reading slows during the summer months. I’ll be back full-throttle with new articles and ideas after Labor Day. A few link-only updates are likely over the summer. There’s plenty of good content to filter through and I’ll be sure to pass along the best of it.
I hope everybody enjoys their summer. Stay cool, stay classy!
Chart of the Week
There was an estimated $31 billion worth of cannabis sales in the U.S. last year, the lion’s share of which was generated through illegal transactions. As states start to legalize the green stuff, though, analysts at Cowen & Co. forecast a vastly different – and larger – landscape come 2026.
3 Good Reads
All-Time Highs. Why No Enthusiasm? (Josh Brown)
“The types of people who are increasingly being hired by the large funds aren’t flamboyant in the traditional Wall Street way in the presence of rising stock prices. They’re technical people, building strategies that are devoid of emotion. The analysts driving the returns at a shop like WorldQuant are nameless, faceless and dispersed around the globe, cranking away at their terminals. They’re not “Look how big my f***ing boat is this summer” people. They’re “Look how fast I can run simultaneous regressions on a thousand data sets while testing for out of sample variants” people. Don’t hold your breath expecting to see them stuntin’ at Art Basel in a lime green Murcielago.“
The Seduction of Pessimism (Morgan Housel)
“The difference between pessimism and optimism often comes down to time horizon. Anything competitive – markets, businesses, countries, careers – moves toward improvement by breaking down what isn’t working and exposing weaknesses. Which means improvement over the long term has to be interrupted by short-term adversity. Pain, regret, trudge, and bullshit is the fuel for advancing and the cost of admission you have to pay to enjoy the benefits of any long-term improvements.”
The King of Pizza Cheese (Chloe Sorvino)
“His laser focus on large pizza chains has allowed him to control as much as 85% of the market for pizza cheese and somehow sell simultaneously to a set of customers — Pizza Hut, Domino’s, Papa John’s and Little Caesars — that try to cut each others’ throat in every way that doesn’t involve where they buy their milk products. Dominating the market has its advantages: He’s able to invest in technology that no run-of-the-mill dairy farmer ever could, resulting in more than 50 patents —and an estimated 7% net margin, which dwarfs the dairy-industry average.”
Enjoy your weekend!