Although a large proportion of American companies have incredibly high valuations, they’re not actually contributing to growth. Even though there’s more profit (and therefore, capital) to go around, many American companies are increasingly hesitant to invest it into innovative ventures, supposedly out of fear of the high risk, low reward profile. Instead, they would much rather restructure and divest in order to preserve their high return rate; “(e)liminating profit streams can actually increase shareholder returns when the remaining company trades at a higher valuation”. Read full article here
Culture
The Priest in the Arena
The phrase “man in the arena” has been popularized in recent years, but a lesser known, more dangerous archetype is the “priest in the arena”. This figure is responsible for a process called theocratic capture, where an institution surrenders to a cult demanding unaccountable authority, fueled by claims to privileged knowledge. These cults often target powerful institutions and attempt to monopolize conversations with scaremongering tactics and hostile treatment of allies. It is important to identify and stop theocratic capture before it can gain control. Read full article here
Merv
May 29, 2023
