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In August we saw #inflation growth moderate further, for the second consecutive month, at least relative to the impressive rate of growth in #prices witnessed around mid-year.
Core #CPI (excluding volatile food and energy components) came in at 0.10% month-over-month and 3.98% year-over-year, which was considerably less than the consensus forecast and was driven higher by #shelter components.
Meanwhile, headline #CPI data printed at a solid 0.27% month-over-month and came in at 5.20% year-over-year.
Inflation data for July moderated somewhat, at least relative to the heady pace of recent months, which should temper #market and policymaker concerns a bit, despite the fact that #inflation will stay sticky-higher for a while and the #risk remains to the high-side.
Core #CPI (excluding volatile food and #energy components) came in at 0.3% month-over-month and 4.3% year-over-year, a bit less than the consensus forecast, and headline CPI data printed at a solid 0.5% month-over-month and came in at 5.4% year-over-year.
While we think that it’s hard to see a case for the recent levels of elevated #inflation turning into “1970s style” runaway price increases, higher #wages and elevated growth for an extended period will allow companies to achieve higher levels of #PricingPower for a time. 
Some notes on the book: Quality Investing
[THREAD]
[THREAD]
1/
3 characteristics of quality
- Predictable cash generation
- High returns on capital
- Attractive growth opportunities
3 characteristics of quality
- Predictable cash generation
- High returns on capital
- Attractive growth opportunities
2/
Ways to return capital
- Capex for growth
- S&M
- R&D
- M&A
- Buybacks
- Dividends
Ways to return capital
- Capex for growth
- S&M
- R&D
- M&A
- Buybacks
- Dividends
