🍋 Wall Street Comp Report

Overheard on Wall Street's 2024 Compensation Survey, plus Warren Buffett's first conference since Charlie Munger passed away.

“AI is a genie that scares the hell out of me.” — Warren Buffett

Good Morning! As promised, you can find the 2024 Wall Street Comp report here.

The Citi managing director who ruthlessly chewed out junior analysts finally left the firm after an investigation. Tragically, a Bank of America associate passed away reportedly due to extensive work hours. Wealthy family offices are spending up to $3 million to lure finance talent away from Wall Street. JPMorgan dropped IndexGPT in the latest Wall Street push to capitalize on the AI boom. AI engineers are starting to feel like investment bankers and complain about the rat race and feeling burned out. And private credit fundraising hit its lowest level since 2020.

SQUEEZ OF THE DAY

Buffett’s First Conference After Charlie

Warren Buffet was missing his late pal and best friend when he accidentally referred to Greg Abel as “Charlie” in one of the most wholesome moments of the 2024 Annual meeting.

Buffett paid tribute to Charlie Munger, describing him as the "architect of Berkshire" in an emotionally moving film tribute.

Berkshire also honored Munger's memory by selling copies of his book "Poor Charlie's Almanack" at the annual meeting.

Among the noteworthy moments, Buffett disclosed that Greg Abel, his successor, would now oversee investment decisions, marking a significant transition.

Berkshire has $189 billion of cash reserves with projected $200 billion by the end of the current quarter. Buffett reiterated the company's commitment to only pursuing investments that offer favorable risk-return profiles and significant profit potential.

Buffett issued a solemn caution regarding artificial intelligence, drawing parallels to the historical impact of nuclear weapons.

The presence of Apple CEO Tim Cook underscored the strong relationship between Berkshire and Apple, even as Berkshire reduced its Apple stake by 13%, with Buffett hinting it’s for tax reasons.

 

Takeaway: The 2024 Annual Meeting was a rollercoaster of emotions from Buffett’s touching homage to his late friend to the unexpected passing of the investment baton to Greg Abel. Despite the serious tone, the packed 19,000 seat arena showed that the "oracle of Omaha" still knows how to draw a crowd. With Buffett still going strong at 93, it seems we'll be enjoying these annual meetings for a while. Who knows, maybe we'll even see Buffett celebrating his 100th birthday on stage, still dropping investment wisdom and dad jokes like a pro!

HEADLINES

Top Reads

  • Citi banker exits after firm probed treatment of junior staffer (YF)

  • Associate at US bank said to die after working 120 hour weeks (eFC)

  • Talent war between family offices and Wall Street drives up salaries (CNBC)

  • JPMorgan unveils IndexGPT in next Wall Street bid to tap AI boom (YF)

  • AI engineers report burnout during 'rat race' to stay competitive (CNBC)

  • Private credit fundraising hits lowest level since 2020 (YF)

  • SEC charges Trump Media auditor with ‘massive fraud’, imposes lifetime ban (CNBC)

  • Lazard leads NY investment banks heralding surge in M&A and debt (BB)

  • U.S. job growth totaled 175,000 in April, much less than expected (CNBC)

  • Peloton shows everything doesn't need to be a subscription (YF)

CAPITAL PULSE

Markets Rundown

Stocks closed higher on Friday and notched a weekly win because of jobs data.

Movers & Shakers

  • (+) Live Nation Entertainment ($LYV) +7% after the ticketing company reported a record quarter, expects strong concert growth.

  • (+) Apple ($AAPL) +6% because the tech giant announced a $110B stock buyback plan.

  • (–) Expedia Group ($EXPE) -15% after the online travel booking company lowered its full-year guidance.

Private Dealmaking

  • Karius, an infectious disease blood testing provider, raised $100 million

  • Stargate Hydrogen, a green hydrogen startup, raised $45 million

  • Oasis Security, an identity management solutions provider, raised $35 million

  • Safebase, a cybersecurity audits platform, raised $33 million

  • Ekotrak, a facility management software platform, raised $30 million

  • IveaCare, a neuromodulation startup, raised $27.5 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Just The Good Stuff

Jim VandeHei’s high school guidance counselor laid it out clearly: VandeHei wasn’t cut out for college. In 1990, you could find him proving the counselor’s case emphatically, preferring beer to books and delivering pizzas to mapping out career plans.

He attended a two-year school before smuggling himself into the University of Wisconsin-Oshkosh, where after a year he had racked up a 1.4 GPA and was on the verge of getting the boot.

Everything changed when he discovered his passions: politics and journalism.

VandeHei went on to cover the presidency and cofound two of the biggest modern news outlets, Politico and Axios, the media companies that upended and revolutionized journalism. He took notes every step of the way.

And in Just the Good Stuff, his debut as a solo author, VandeHei writes the book he wishes someone had handed him when he was floundering—not a compendium of conventional wisdom but a real-world guide to achieving that other “good stuff,” health, wealth, happiness, all the blessings and exquisite pleasures we loosely group under that oft used but still under-appreciated rubric—success.

Delivered in his hallmark no-word-wasted style, VandeHei offers essential, no-BS guidance on how to handle everything from finding a calling to building a team to navigating the realities of a changing workplace, showing us that no matter how inauspicious our beginnings, no matter how far down the ladder we begin, no matter what kind of challenges we face, a fulfilling life is within our reach.

“A deeply personal, authentic, and clear-eyed guide to navigating today’s complex world and building a meaningful, successful career and life.”

DAILY VISUAL

Distribution of Healthcare Costs

US: The bottom 50% of healthcare spenders account for 3% of total healthcare costs

Source: Apollo

DAILY ACUMEN

Racing Thoughts

When racing thoughts keep you up at night, it can feel like you're grappling with an invisible force.

Sleep experts emphasize that trying to escape anxious thoughts often backfires, creating "sleep effort," where frustration builds as sleep slips further away.

Instead of forcing sleep, consider understanding the values driving your nocturnal thoughts.

Reflect on why certain worries surface at night—whether about work, relationships, or broader world issues—and recognize that these anxieties often stem from what matters most to you.

To create distance from these thoughts, visualize them as leaves floating down a stream, or schedule "worry time" during the day to give your concerns an outlet before bedtime.

These strategies aren't instant fixes, but by shifting how you relate to nighttime musings, you can gradually find greater peace in the stillness and learn to rest more easily.

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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