From 600+ conversations with the world’s leading thinkers.
I can illustrate the current situation in the form of a story. Two boys were being chased by a Tiger. One boy stops to put on running shoes, and the other boy says, 'What are you doing?' The first boy responds, 'I don't have to outrun the Tiger, I just have to outrun you'.
We have to get out of this 'tax to spend' mentality and think about using resources to create investment funds that support local businesses, while also expecting to get something back as those businesses appreciate.
It's amusing when you ask people, well name someone who became rich as a hedge fund client?
Running a business is a challenging job, but until relatively recently, that job was simplified to the extent that you had one target – make as much money as you can for the shareholders. Now, you have to balance a multitude of targets which makes it much more challenging.
You know what else is immoral? 700 million people who have no electricity. We need to have actual conversations about how to solve problems – and hold the uneasy tension of who pays for it, and how.
Our goal is to pinpoint where we can create the most value for humanity per dollar, rupee, or shilling spent. This isn't usually something that makes you wealthy, but it does a significant amount of good in three ways: it helps people survive and stay healthy rather than falling ill or dying; it alleviates poverty; and it improves the environment.
Investors are always looking for something different, where they can get Alpha… where they can get diversification… where they can get non-correlation. It's not necessarily linked to them being 'US Assets' but more that they are unique assets regardless of domicile and they have not previously had access to them.
Much of the mistreatment of animals is due to economics; it's cheaper to raise animals for food when they're kept in a confined 'economical' way rather than letting them graze in fields. In my view, we should actually only have the free-range farms – meat would then be more expensive and more people would become vegetarian, vegan, and find alternative protein foods so that we don't cause this terrible animal suffering.
We need to get out of the peacetime footing that we are on and we need to get onto a wartime footing against this climate crisis. During World War II, the US allocated 50% of GDP roughly to fighting, and I believe we need to get to 50% of GDP sustained over 5 to 10 years.
Out of the 1,800 companies we measured, 250 created more environmental damage a year than profit. 600 created environmental damage of 25% or more of their profits. Together, the 1,800 businesses we researched created over $3 trillion of environmental damage in a single year.
China's main comparative advantage for the past couple of decades has been cheap labour. What if we move to a world where, because robots are so cheap… cheap labour doesn't really matter anymore? What will be China's main comparative advantage after that?
I think both examples share one glaring mistake. They overlook the fact that even though knowledge diffuses, it is also agglomerative—it tends to concentrate. When it comes to the growth of knowledge, you need to double down on the capacities you already have; you want to build on cities that possess a foundation.