Fortune

KKR is dreaming bigger than any outfit on Wall Street and embarking on a remarkable journey that few could have seen coming. Bucking the famously “capital-light” approach their industry was built on, they’re aiming to fashion the next Berkshire Hathaway—in other words, channeling the cash flows from alternative money-spinning franchises to acquire a roster of strong, stable businesses they own outright for a long period of time. That unorthodox “ownership” approach, they claim, will drive the firm’s valuation to levels never before witnessed in asset management. Another major leg of the strategy that’s also Warren Buffett–like: KKR’s 100% position in a giant insurer that’s not only a big profitmaker in its own right, but provides multiple billions a year in premiums for KKR’s fixed-income arm to manage. If co-CEOs Joe Bae and Scott Nuttall hit the mark, KKR would be worth one-third more than Bank of America’s value today, and almost 70% that of JPMorgan. But their strategy entails huge risks. Read more from the latest digital issue of Fortune Magazine: https://lnkd.in/ehXN5b2M

For the past five years, the No. 1 and No. 2 spots on the Fortune 500 have reflected a head-to-head retail rivalry. Walmart, which has ranked in first or second place on the list of America’s biggest companies by revenue every year of the 21st century and has been No. 1 for 12 years in a row, began competing with Amazon for the top spot beginning with the 2020 list, published that spring. (On the 2022 and 2024 Global 500 lists, Amazon was also No. 2.) The 2020 edition of the #Fortune500 was published amid COVID pandemic lockdowns; however, its rankings reflected results from 2019—so, pre-pandemic financial performance. But from that point, Amazon’s ascent to runner-up status, which had long been in the works, seemed sure to be a fixture of the list for years to come, as consumer behavior during a stay-at-home era fueled online shopping out of both necessity and boredom. Yet there's one key foothold that Walmart has over Amazon. Read more from the #FortuneArchives: https://lnkd.in/etPXvF9u

The first-ever Rolex "Rainbow" Daytona chronograph watch is set to come to auction and could fetch more than $3.5 million. The Rolex from the 1990s will be put on the block in Geneva on November 8. In an unusual move, the auction house Phillips has decided not to assign a high estimate value for the piece, but expects it to sell for at least 3 million Swiss francs ($3.5 million). The watch is believed to be the first-ever example to feature the now-famous "rainbow" gem-set pattern produced by the Swiss watchmaker, according to Phillips. Read more: https://lnkd.in/eGHE-cdK

Does American tennis have a pickleball problem? Even as the U.S. Open opened this week with more than a million fans expected for the sport’s biggest showcase, the game’s leaders are being forced to confront a devastating fact — the nation’s fastest-growing racket sport (or sport of any kind) is not tennis but pickleball, which has seen participation boom 223% in the past three years. “Quite frankly, it’s obnoxious to hear that pickleball noise,” U.S. Tennis Association President Dr. Brian Hainline grumbled at a recent state-of-the-game news conference, bemoaning the distinctive pock, pock, pock of pickleball points. Read more: https://lnkd.in/ePDNxuzf

There are more starter homes ready for people to buy, but they are not getting any cheaper. Still, there’s some increased interest among buyers. Pending sales of starter homes leaped around 10% in July from a year earlier, to their highest level since October 2022, according to a recently published analysis by Redfin. It shows “there may be signs of life for first-time homebuyers at the lower end of an otherwise sluggish market,” Redfin said. To be clear, a pending home sale means a seller has received and accepted an offer on their home, but the deal hasn’t been closed. While pending home sales of starter homes rose, middle-tier homes, by contrast, fell 6.5% during the same period. Upper-priced pending home sales fell, too, by 10%. And pending home sales of luxury homes dropped close to 8%. Read more: https://lnkd.in/eyq7xY43

WFH companies can capture more talented candidates. About 83% of recruiters say they believe remote work has improved the quality of the applicants they attract, according to a new report from MyPerfectResume, which polled more than 750 recruiters across the U.S. “Organizations are really becoming savvy to what kind of employee really works,” Jasmine Escalera, a career expert for MyPerfectResume, tells Fortune. “That might not necessarily always be someone who is local. Now you get to choose from all over the world.” Read more in the #CHRODaily newsletter:

Nvidia’s skyrocketing stock has made its employees so rich they’ll tolerate pretty much anything—even its demanding and sometimes unhealthy work culture. The company’s shares have shot up more than 3,000% since the start of 2019, making many of its employees millionaires. But even though they may be wealthy, workers are often too busy at the office to enjoy it, 10 anonymous current and former employees told Bloomberg. Still, few are willing to leave if it means putting their vested shares at stake. One former employee who worked in technical support for enterprise clients and left in May said he often worked seven days a week, and frequently ended his work day at 1:00 or 2:00 a.m. Other workers, especially those in the engineering department, worked even later, he added. Read more: https://lnkd.in/e7UJjXMk

Red Lobster closed about 100 restaurants in May, filed for bankruptcy, and plans to close another 23 restaurants. But now a former P.F. Chang CEO is poised to bring changes to the well-known seafood restaurant chain, and a new CFO is likely to be named too. The new blood will be welcomed as Red Lobster struggles to recover from a shrimp promotion that led to a fiasco. Fortress Investment Group announced on Monday that Damola Adamolekun will become the chief executive of RL Investor Holdings LLC, a new corporate entity set to acquire Red Lobster following a court approval of the restaurant’s Chapter 11 plan, which is expected next month. Read more in the #CFODaily newsletter: bit.ly/3Xw4zX3

"It'd be crazy for me to leave my job, assuming I can do it." In an interview at the 2015 Fortune Most Powerful Women Summit, Berkshire Hathaway's Warren Buffett shared the reason why he won't retire. "I see these people, they spend a whole week planning their haircut. That is not my idea of living," Buffett said. Read more here: bit.ly/3Mo11iY

There’s a lot of hotly-awaited AI news this week. Markets will be watching Nvidia’s earnings announcement tomorrow to gauge the health of the AI boom. According to news reports, the company is expected to say that quarterly sales have more than doubled, even though the year-on-year revenue growth rate has slowed. The other eagerly anticipated AI news of the week is the fate of California’s proposed AI regulation, SB 1047, which is expected to come to a vote in the State Assembly sometime this week. Read more: