🍋 Best-Behaved Bankers
WFH has surprisingly improved bankers' behavior, plus Cava plans an IPO and cities are converting shuttered malls into pickeball courts.
“After graduation, the valedictorian will often get lapped by 'average' people who better invest their time.” — James Clear
Good Morning! Everyone in NYC has heard of Cava, but the fast-casual chain is eyeing rapid expansion with an IPO and plans to open 1,000 locations. But it might not be great timing to roll out $15 salad bowls across the country - a new study found that a recession could put over one million jobs at risk. And even fortune cookie companies are turning to AI to replace writers.
But Americans are making the best of rocky economic times. Some towns are replacing shuttered malls and Bed Bath & Beyond stores with pickleball courts - there’s even an 80k square foot facility opening next month near NYC (Stamford, CT) in a vacant mall.
Want to invest in the next big brand name in your home and get in on the ground floor of an innovative technology company? Check out today’s sponsor RYSE.
1. Story of the Day: Best-Behaved Bankers
There might be an unintended positive consequence of WFH for the banking industry. Recent research has revealed a surprising finding: bankers appear to be even more well-behaved when working from home compared to being in the office.
An eye-opening study demonstrated that traders working from home exhibited a mere 7.3% chance of triggering a misconduct alert on an annualized basis. In stark contrast, for those working in the office, this probability skyrocketed to a staggering 37.6%.
So why does working from home contribute to a decrease in misconduct? Firstly, the limited access to inside information and market rumors is a crucial deterrent. When bankers operate from the confines of their homes, their avenues for acquiring privileged information become significantly restricted, thereby reducing the temptation to engage in illicit activities.
The second reason lies in the contagious nature of unethical behavior. Bankers are aware of right and wrong - we have hours upon hours of compliance training to thank. But there are always coworkers in the office that push the boundaries. And the presence of a herd mentality in the workplace can weaken individual ethical standards.
Takeaway: The vast majority of finance professionals don’t think 100% remote work is the way to go, and this new study is more an anecdote than anything. However, the authors may be onto something significant - understanding the dynamics and motivations of one's coworkers can prove to be more important than the nitty-gritty financial technical knowledge.
2. Markets Rundown
Stocks closed lower on Friday after debt ceiling talks were paused.
Movers & Shakers
(+) Catalent ($CTLT) +16% after the drug maker’s CEO announced a positive business update about meeting demand.
(+) Farfetch ($FTCH) +15% after the e-commerce company reported a revenue beat.
(–) Foot Locker ($FL) -27% after a slowdown in consumer spending.
The University of Idaho wants to buy the University of Phoenix for $500 million
Restaurant365, a restaurant management software provider, raised $135 million
Kyoto Fusioneering, a fusion engineering startup, raised $79 million
Ethernovia, a developer of hardware and software for vehicles, raised $64 million
Anybotics, a Swiss developer of inspection robots, raised $50 million
Nivoda, a B2B marketplace for diamonds and jewelry, raised $11 million
A Message from RYSE: Amazon Bets Big on Smart Homes, You Can Too
Ring 一 Acquired by Amazon for $1.2B
iRobot 一 Acquired by Amazon for $1.7B
Amazon’s investments have resulted in significant returns for early investors in these companies, leading many to wonder which area of the smart home is next?
RYSE is a tech startup poised to dominate the Smart Shades market, with an exclusive public offering of shares priced at just USD $1.
They are filling in one of the last missing pieces of the smart home, with:
Proven Demand: Offering the only product that automates existing window shades, RYSE has sold over $7M of product to date, and is launching with QVC and Best Buy soon!
Cleantech Solutions: Awarded $4M in grants owing to their product’s potential to lower cooling costs by 24% and lighting costs by 74%.
Consistent Returns: Shareholders have seen their share price increase 40% year-over-year, with significant upside remaining as RYSE prepares to launch in over 100 BestBuy stores..
3. Top Reads
San Francisco gets a $1 billion bet that workers will return (BB)
The new rules of venture debt are already being written (TC)
The low interest rate era will make a comeback (Axios)
Bumble acquires an app that helps couples strengthen their relationship (FC)
Morgan Stanley hires new CEO, ushering Wall Street sucession race (CNBC)
When cash is safer than risk-free (Axios)
Yellen says June 1 is hard deadline for raising debt ceiling (YF)
DOJ wins suit to undo JetBlue-American Airlines partnership (CNBC)
Young investors in college clubs embrace wild market ride (WSJ)
Inside the life of influencer barbers (NYT)
4. Book of the Day: How Far Do You Wanna Go?
Born on the small Greek island of Nisyros, John Catsimatidis immigrated to the States with his family and quickly became a true New Yorker, raised in Harlem.
He went to school by day and worked in a small grocery store by night to help his parents pay the bills until, just eight credits short of graduating from New York University, he opted to work in the grocery business full-time.
Today, that grocery business has become the Red Apple Group, a conglomerate with interests in energy, real estate, aviation, baseball, entertainment, and media, including the iconic radio station WABC, where John hosts leading figures in government, politics, business, and economics.
As Catsimatidis has discovered, the American Dream doesn’t come with an instruction manual—or even a sign to let you know when you’ve arrived at the finish line. How Far Do You Want to Go? tells Catsimatidis’s dynamic story, from his beginnings in the grocery business to entering the political arena, including a New York City mayoral campaign.
He’s tried his hand at nearly everything, but he’s far from finished with his adventures. Now, he offers readers a glimpse into the wisdom he’s gained—and the excitement he has for what the future holds in store.
“A detailed account of an incredible rags-to-riches story.”
5. Short Squeez Picks
Daloopa is giving Short Squeez readers access to ten financial models (any public company) if you sign up for a free account on their website
Why knowing thyself is the only career advice you need
How to do more with less
New record set for fastest trip through entire NYC subway system
How do VC’s minds work
Why micro-breaks are so good for you
6. Daily Visual: Built to Rent Housing on the Rise
Single family built-to-rent units, planned or under construction, per million residents
7. Daily Acumen
The Five Levels of Leadership is a model developed by John C. Maxwell that outlines different stages of leadership development. Each level represents a progression in leadership effectiveness and influence:
Positional Leadership: This is the lowest level of leadership, where influence is solely based on the title or position held. People follow because they have to, not necessarily because they want to.
Permission Leadership: At this level, leaders focus on building relationships and earning the trust and respect of their team members. They create a positive and supportive environment that encourages collaboration.
Production Leadership: Leaders at this level demonstrate competence and achieve tangible results. They lead by example and gain influence through their ability to deliver high-quality outcomes.
People Development Leadership: Leaders at this level prioritize the growth and development of their team members. They invest time and effort in mentoring and coaching, empowering others to reach their full potential.
Pinnacle Leadership: This is the highest level of leadership, where leaders have developed exceptional influence and have a positive impact beyond their immediate team. They focus on creating a lasting legacy and inspiring others to become leaders themselves.
By understanding the Five Levels of Leadership, individuals can assess their current level and work towards progressing to higher stages of leadership effectiveness.
This model emphasizes the importance of building relationships, developing others, and producing results to become a truly influential and impactful leader.
8. Memes of the Day
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