Welcome to Muhr's Must Reads!

I focus on relevant business & finance articles while frequently drifting to topics such as sports, art, technology and more! MMR was created because I'm passionate about sharing what I find interesting.

MMR remains free and takes many hours a month to compile, and thousands of dollars a year to sustain. If you find value in what I do, please consider becoming a Supporter with a recurring monthly donation of your choosing, between a cup of coffee and a dinner.

The defense industry and silicon valley have had a long history in tandem – there is even a lot of evidence that defense spawned the technology industry there. Whatever the case, an interesting parallel that popped into my head while reading this article. That thought was about the creation of the OSS (Office of Strategic Services) during WWII that preceded the CIA. While traditionally technologies were developed for military use first, could there be a new era of consumer-/industrial-driven advances being applied to warfare? Rather than the target customer for technology companies, the DoD is now more of a(n) sub-sector/afterthought due to companies focusing on problems that affect the mass population – and the military is tough to do business with for many reasons. While DARPA focuses on challenges that are 20-30 years out, the new task is to find challenges that need fixing which are much more immediate.

This is obviously a super-long read but I find it fascinating. We’re living through a truly unique time in the history of finance with all the extraordinary experimentation going on via central banking. There is no good way to sum up the essay but I think that this quote is pretty on-the-money: “History shows us that economic recovery from a depression has never been successfully engineered without a major debt reduction, default, hyperinflation, political revolution, or world war.” Now that is a pretty wide statement of possibilities, but I think that currently the mentality of the market is that – at least for the Fed – central banks have “beaten” the recession. The essay really is about volatility rallying for any of the stated reasons. I think it’s a pretty good bet vol is relatively cheap compared to all the “shadow convexity” that exists with these multi-dimensional risks playing out in real-time.

I’m a huge fan of Charlie Munger and the “mental-model” school of thinking. That’s why when I read this article it was just another confirmation that if you can find certain patterns in nature, they can be applied across a variety of disciplines. Here’s a good quote: “...the same basic species-area curve was found regardless of the species or habitat. To put it mathematically, the curve followed a power law, in which the change in species number increased proportionally to the square root of the square root of the area. ... Power laws are common in science, and are the defining feature of universality in physics.”

The Atlantic - How to Deal With North Korea 26min

Kim’s regime may be evil and deluded, but it’s not stupid. It has made sure that the whole world knows its aims, and it has carried out public demonstrations of its progress, which double as a thumb in the eye of the U.S. and South Korea. The regime has also moved its medium-range No-dong and Scud missiles out of testing and into active service, putting on displays that show their reach—which now extends to South Korean port cities and military sites, as well as to the U.S. Marine Corps Air Station in Iwakuni, Japan. ... In short, North Korea is a problem with no solution … except time. ... True, time works in favor of Kim getting what he wants. Every test, successful or not, brings him closer to building his prized weapons. When he has nuclear ICBMs, North Korea will have a more potent and lethal strike capability against the United States and its allies, but no chance of destroying America, or winning a war, and therefore no better chance of avoiding the inevitable consequence of launching a nuke: national suicide. Kim may end up trapped in the circular logic of his strategy. He seeks to avoid destruction by building a weapon that, if used, assures his destruction.

Blooomberg - Get Ready for the Cuban Cigar Wars 6min

He’s insulted by what he views as an uneven, inferior product and infuriated that it’s held in such high esteem around the world. Sure, Cuba’s clay-rich soil produces terrific tobacco, but the dedication to the craft of cigar rolling has evaporated under communist rule. ... Ever since John F. Kennedy slapped the embargo on Cuba, the communists and the exiles have never competed against each other in the U.S. market. What will happen when they do is a favorite topic in cigar circles. America represents about a third of the $21 billion global cigar market ... Today, there are two called Partagás, two called La Gloria Cubana, two called Montecristo, two called Romeo y Julieta, and two called Hoyo de Monterrey—one made for the U.S. market, the other produced in Cuba to be sold everywhere else. It’s the same duality that reigns in the rum industry: Bacardi produces the expat version of Havana Club, while the Cuban government has partnered with Pernod Ricard to distill its Havana Club; the two sides have been feuding in court for years over control of the trademark.

Fortune - Howard Schultz Has Something Left to Prove 14min

Handing over control of a company is always tricky—Schultz, 63, officially relinquished the CEO job on April 3—and doubly so when it involves a charismatic, longtime leader who all but founded the company. ... In Schultz’s case, how does a notorious perfectionist who craves total control apply his perfectionism to the act of ceding control? That challenge is all the more fraught because his most notorious professional failure by far was his last attempt to leave as CEO, in 2000, a slow-boiling disaster that eventually concluded with his triumphant return. ... Beyond covering the planet with coffee bars, Starbucks has two main growth initiatives, which Johnson calls the “most critical things for the future of the company.” Johnson will be in charge of one of them: the continuing development of Starbucks’ digital and mobile operations. ... second key area will fall to Schultz. As executive chairman, he’s leading Starbucks’ push to develop a higher-end brand and “experiential destinations” to entice people who have abandoned malls to stop by a store. That strategy involves a three-pronged attack consisting of (1) the Roastery, a handful of massive, ultraluxurious coffee palaces inspired in part by Charlie and the Chocolate Factory; (2) a new brand of rare and single-origin coffee beans called Reserve; and (3) a second line of boutiques—a notch above a regular Starbucks but not quite as over the top as the Roastery—also called Reserve.

1843 Magazine - Superstars Among The Dreaming Spires 15min

As long as the public delights in seeing pompous winemakers and critics humbled, journalists will keep writing Schadenfreude-laden stories about the latest “Gotcha!” study. But these articles generally confuse absence of evidence with evidence of absence: they presume that if a handful of researchers did not find that one group of connoisseurs possessed statistically significant tasting ability, any claim to wine expertise must be a hoax. The truly interesting question is the opposite one: whether it’s possible for a critic to look smart rather than silly. ... Unfortunately, designing an experiment that gives tasters a chance to succeed requires the scientist to understand wine. They need to give the drinkers plenty of time on a small number of wines, in an odourless room with appropriate stemware; to taste the bottles and ensure they are not flawed; to choose wines that are representative of a well-known style; and to serve them at the age where they best strut their stuff. In other words, what you would need is the Oxford-Cambridge Varsity match.

Nautilus - Nature, the IT Wizard 5min

As space exploration geared up in the 1960s, scientists were faced with a new dilemma. How could they recognize life on other planets, where it may have evolved very differently—and therefore have a different chemical signature—than it has on Earth? James Lovelock, father of the Gaia theory, gave this advice: Look for order. Every organism is a brief upwelling of structure from chaos, a self-assembled wonder that must jealously defend its order until the day it dies. Sophisticated information processing is necessary to preserve and pass down the rules for maintaining this order, yet life is built out of the messiest materials: tumbling chemicals, soft cells, and tangled polymers. Shouldn’t, therefore, information in biological systems be handled messily, and wasted? In fact, many biological computations are so perfect that they bump up against the mathematical limits of efficiency; genius is our inheritance.