So, you want to save the world from all the political, social and economic turmoil? That is certainly a huge undertaking for anyone. But, as one of my associates says, “better save the planet first, or we haven’t got anything else to worry about.”
My colleague’s statement is brilliant and worth quoting because many investors agree that before we can solve most global issues, we have to fix our planet first. But how do we do this? How do we go about cleaning the water, air, soil and eat healthier food? If you think you can do this by volunteering or through non-profit foundations, we will never get there. It is good to build awareness, create ideas and innovate, but unless we can create scalable solutions that have lasting impact, our time will be wasted.
The Answer Lies in the Economics
What we need are economic drivers that can finance real solutions. Did you know that most of the viable resources are already worth so much that we can economically recycle or repurpose them and create new resources? That’s right! The cost to extract a new resource is either greater than — or becoming greater than — recycling a used one.
At Ultra Capital we published a paper on this topic and showed that the returns on these opportunities create better financial investments in the market today. Massive shifts are occurring and for investors that are paying attention, the opportunity exists to capitalize on the emergence of new asset classes and resources we depend on as a planet.
In the paper, we highlight the bountiful economic trends and investment possibilities:
“Over the next few decades, the way people obtain their food, water, and energy will undergo a major evolution. People will no longer rely on industrial production units hundreds or thousands of kilometers away. Instead they will source a greater proportion of essential resources, goods, and services from within their ‘neighborhood’.”
This is the direction of resource sustainability. The timing of this is more important than ever.
No matter what you believe regarding our new administration, these opportunities are not going away and, in fact, will get more interesting every year.