Forbes Daily: Meet SVB’s New Owners

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Even back in 1944, the CIA knew how to ruin a meeting. They listed a few tactics in their Simple Sabotage Field Manual—a guide for undermining enemies during World War II. If you run workplace meetings, or are someone who attends (too many of) them, I’d be willing to bet some of the “tactics” will seem familiar. Such as “haggle over precise wording of communications.” Clearly the CIA had not studied newsrooms…

But ineffective meetings can have a significant impact. In an online questionnaire, 65% of people who dislike their jobs reported that they're frequently stuck in unproductive meetings. Worth reading, or sharing (politely) with a frequent offender.

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BREAKING NEWS

Three children and three adults were killed during a mass shooting at a private Christian elementary school in Nashville on Monday. The shooter, a 28-year-old Nashville woman, also died after a confrontation with police. It’s the 129th mass shooting in 2023 so far, and the White House has renewed its push for a ban on assault weapons.

Indian billionaire Gautam Adani has once again watched his net worth tumble over the last 24 hours, this time to the tune of $4.2 billion as shares of Adani Group’s listed firms were hit by a sell-off after Indian media reports raised questions about the conglomerate’s debt repayment claims.

BUSINESS + FINANCE

Stocks rallied Monday, with bank stocks leading the charge, including First Republic and First Citizens, fresh off the announcement of its SVB acquisition. The S&P 500 hovered near its highest level since March 7, and the Dow is up 4% from its 2023 low on March 15. (Photo: Getty Images).

Raleigh, North Carolina-based First Citizens Bank and its owners, the Holding family, have kept a low profile for decades, but the bank doubled in size with its landmark FDIC-assisted acquisition of Silicon Valley Bank. It’s just the latest in their mission to expand nationwide via opportunistic acquisitions.

TECH + INNOVATION

A Chinese official said the U.S. is targeting TikTok based on a “presumption of guilt,” and so far has not given evidence that the app is a threat to national security. The statement came hours after House Speaker Kevin McCarthy (R-Calif.) tweeted that the chamber will move forward with legislation to “protect Americans from the technological tentacles of the Chinese Communist Party.”

The Commodity Futures Trading Commission issued a complaint against Binance, alleging that the firm put profits over compliance and committed “numerous violations.” The filing is just the latest in a series of questionable behaviors by the world’s largest crypto exchange.

SPORTS + ENTERTAINMENT

MLB star Mike Trout is opening a golf course in his hometown of Vineland, New Jersey—designed by none other than Tiger Woods. The duo have some of the deepest pockets of any athlete: Woods was 14th on Forbes’ list of highest-paid athletes in 2022, while Trout was 23rd. (Trout also features in the brand-new list below).

Los Angeles Angels pitcher Shohei Ohtani leads Forbes’ list of Baseball’s Highest-Paid Players of 2023, and the group is set to collect a record $436 million combined this year before taxes and agents’ fees, up 15% from last year’s all-time high. More: These retired MLB greats continued to rake in earnings as well thanks to retained salaries and deferred payments.

Daily Cover Story

How to Beat the Market With Boring Stocks

TOPLINE For a depressingly protracted period, the value-conscious portfolio managers at AQR, cofounded by billionaire Cliff Asness in 1998, lost ground to competitors chasing hot growth stocks. Then came last year’s stock market rout. As the air exited inflated tech stocks, AQR funds became winners.

This is how Asness describes what bubbles do to value players: “It starts out ugly, and then it turns wonderful.” That is, if you hang in there. And Asness isn’t shy about making the case that value’s rebound is far from over.

A lot is going on in the data-intensive stock picking at AQR, but one theme shines through: the idea that value beats growth over the long haul. Value stocks are the shares of sluggish, unexciting companies that only contrarians love—like Stellantis, the Chrysler-Dodge-Fiat car company. The market darlings are fast-growing and sexy. Ferrari, for example. The latter shows up as a short position in AQR Market Neutral’s last public filing, and is priced at 49 times trailing earnings, while the former can be had for three times earnings. Asness hazards the prediction that the value rebound is in the “early innings.”

WHY IT MATTERS “Rising interest rates have already made a big dent in dream stocks—the ones promising dividends many years hence,” says Forbes Senior Contributor William Baldwin. “If we get a recession, then the futuristic stocks will probably suffer more damage. You may wish you were invested in companies that are less exciting but are delivering shareholder payouts (dividends and buybacks) here and now.”

MORE What Makes Alphabet A Value Stock?

FACTS AND COMMENTS

30%: Representation of women on boards, according to a 2023 report.

8.6 percentage points: The gender gap in homeownership between single women and single men in 2022, up from just 1.8 percentage points the year prior.

1 in 36: The rate of autism among children in the U.S., which is increasing, according to CDC estimates.

STRATEGY AND SUCCESS

The recent failures of Silicon Valley Bank and Signature Bank, and the bailout of First Republic Bank, serve as a reminder that banks can and do fail, and investors need to be aware of the potential risks. For instance, make sure you understand how FDIC-insured limits work, particularly if you have an account near the $250,000 mark. The same goes for certain investment accounts, such as IRAs and non-retirement accounts, which are covered by the Securities Investor Protection Corporation up to $500,000.

VIDEO

Elon Musk Provides Update On Who Will Keep Blue Tick—Ahead Of Twitter’s Looming Verification Rollback

QUIZ

Looking for Summer 2024 plans? You could be one of 45,000 volunteers at the 2024 Paris Olympics and Paralympics. Which of the following is not true of the job?

A. It includes free entry to the games

B. It’s a minimum of a 10-day commitment

C. Volunteers must speak French

D. It does not include accommodations

Check if you got it right here.

ACROSS THE NEWSROOM

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BEYOND THE NEWSROOM

• Join us virtually for the 2023 Forbes CIO Summit on April 12, 2023 from 9 a.m. to 10:30 a.m. ET as we gather some of the world’s top CIOs, CTOs, CDIOs and futurists for an amazing mind share focused on leadership, innovation and transformation. The summit is designed to inform, challenge and delight as we examine several key issues of importance to technology leaders.
• Join us at the 2023 Forbes Under 30 Summit in Botswana on April 23-26, 2023, This year includes performances by award-winning artists, conversations with top business leaders, exclusive networking with entrepreneurs from across the continent and the globe, plus game drives, a bush party and regional excursions. Register now.
• Looking ahead: The 2023 Forbes Future Of Work Summit will take place in New York and virtually on June 1. Here, we’ll explore the forthcoming impact of artificial intelligence, shifting dynamics between workers and employers, and more. Sign up to stay tuned for updates.

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