- 1 How it works and what the exclusive group of millionaires invests
- 1.1 WHAT DO YOU KNOW ABOUT YOUR INVESTMENTS?
- 1.2 THE FIVE “MEGATENDENCIAS” OF THE FUTURE
How it works and what the exclusive group of millionaires invests
Some of the richest businessmen in the world, such as Bill Gates, Jeff Bezos, Mark Zuckerberg or Jack Ma, have a financial coalition that handles at least a billion dollars.
The magnates club is investing in startups that develop new technologies to store clean energy, one of the great challenges that humanity has not been able to solve at a competitive cost.It is a business that will not bring immediate profits, but in the long term, it could not only be immensely profitable, but also revolutionize the energy industry and the effects generated by polluting emissions.
The classic example is that of solar panels. They are very efficient when exposed to the sun, but until now, it remains unknown how to store and distribute that clean energy on a large scale so that it is available at any time.
But the coalition, whose name is Breakthrough Energy Coalition (BEV), and calls itself as an “exclusive group” (unique group), goes far beyond energy storage, which is just one of the business lines that they know publicly. Led by Microsoft co-founder Bill Gates, this group is made up of private investors, banks and multinational corporations, who have no problem signing checks with a number of zeros difficult to imagine. How high is the bet ?. They want to finance, nothing more and nothing less, “the biggest infrastructure projects in the world”.
Just look at the list of 22 magnates that are part of the club, to get an idea of the interests involved. Among them: the Virgin founder, Richard Branson; Amazon founder Jeff Bezos; the executive director of Alibaba, Jack Ma; the president of Soros Fund, George Soros and the cofounder and executive director of Facebook, Mark Zuckerberg, among many others.
WHAT DO YOU KNOW ABOUT YOUR INVESTMENTS?
“By the middle of this century, the world will use twice as much energy as it currently needs,” Gates wrote in his blog, when the coalition was founded in late 2016.
“We need a different model to invest in good ideas that go from the laboratory to the market.”
Despite the secrecy that surrounded the investment plan of the fund created by the group of billionaires, a few weeks ago the US press revealed the names of the first two startups that would have obtained funds from the coalition: Form Energy and Quidnet Energy, both dedicated to energy storage.
Form Energy is dedicated to creating low cost and long-lasting batteries.
“Our goal is to store energy for weeks, months and perhaps longer, at a fraction of the cost of current technologies,” said company CEO Ted Wiley.
The other firm, Quidnet Energy, develops pressure systems that pump water into wells with shale rocks to generate electricity.
The stated objective of the coalition is to invest exclusively in firms that are capable of reducing polluting emissions by at least 500 million metric tons per year.
And for that, investors have said they have no problem waiting up to 20 years, before seeing any profitability.
THE FIVE “MEGATENDENCIAS” OF THE FUTURE
After studying several alternatives, the coalition of magnates defined some of the “megatrends” that will shape the world in the next 50 years and that give the guidelines on international energy consumption.
1- Expansion of solar and wind energy at low costThe group states that at present the costs of this type of clean energy have decreased substantially and that projections indicate that they will continue to do so.
2- Growth of the middle class and higher energy consumption
If more people join the middle class of their respective countries, energy consumption will skyrocket, especially in terms of producing a diet that is richer in calories and meat.
And that is where a great source of contamination is hidden. “If the livestock industry were a country, it would be the third emitter of pollutants in the world,” the coalition says on its website.
3- Increase in urbanization
More than 200,000 people a day in the world move to live in urban areas. As projections suggest that this trend will increase rapidly, it is estimated that in 30 years, seven out of 10 people will live in cities.
Given this scenario, the group of investors is working with experts to anticipate the problems and opportunities that the cities of the future will bring.
4- autonomous cars, smart buildings
The club is betting that driverless cars – and electric cars – will help reduce levels of air pollution and, on the other hand, estimate that more “smart buildings” will be built that can detect, for example, the temperature outside Automatically adjust the interior temperature.
5- The market will continue to favor fossil fuels
Although for years the energy industry has been concerned about the extinction of fossil fuels, recent studies indicate that polluting energy sources will remain available and at low cost.
That is why, they say, there is an urgent need to develop clean energies that are cheap.
Google also banned cryptocurrency ads from its search engines. Twitter and Snapchat have also regulated this type of advertising because it is an “unregulated” and “speculative” market. This business is infested with scams. According to the FTC, consumers have lost US $ 532 million in the first two months of 2018 alone. A loss of US $ 3 billion is expected before the end of the year.