Jim Mellon has a pessimistic attitude towards the US stock market, he is determined to change what people eat, and at the same time he remains stubbornly optimistic about the future of the younger generation.
The billionaire author told Business Insider why Warren Buffett's massive cash reserve is a wake-up call, why he wants to feed the world using bioreactors, and why workers in the age of AI should embrace what makes them human.
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According to Mellon US stocks seem 'very overvalued'taking into account that this country is inhabited by approximately 3 percent. world population, and it is responsible for over 60%. global market capitalization.
Mellon says this is a “warning sign” because in addition to “extremely stretched” valuations and “record levels of debt in brokerage accounts” Big tech companies have moved from having “clear competitive advantages” to entering into mutual, closed transactions and “doing more or less the same”, investing huge sums in building AI data centers.
What does Jim Mellon recommend investing in?
The millionaire emphasizes that in recent years he has been a great supporter of gold and silver because Government policies around the world have weakened the value of national currencies, and he has no desire to “jump on the cryptocurrency trend.”
Mellon believes that “The energy sector is probably the best place to invest” now — partly because the AI boom is increasing demand for energy-intensive data centers and straining power grids, and partly because energy is, in his opinion, “significantly undervalued relative to its share of global equity markets.”
It also suggests that investment opportunities can be found in the UK and emerging markets. At the same time, he would be “very, very wary of China” because of the risks associated with foreign ownership and state control, and would “avoid the U.S. market completely.”
He also recommends having Japanese yenbecause they are “extremely cheap” relative to the dollar and are generating higher yields today than in the past thanks to rising interest rates.
Mellon also points out that Warren Buffett's Berkshire Hathaway currently has over $350 billion. liquid assets.
— The fact that he has so much cash tells us that he sees something in the current state of the world that doesn't look very positive — he says about newly retired CEO Buffett.
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The future of food
Mellon, an experienced investor in the biotechnology sector, emphasizes that cellular agriculture allows you to grow cells from which meat is made, and precise fermentation allows you to use yeast to create egg whites, dairy products and many types of oils.
In an interview with Business Insider, he says that jIts mission is to transform the global food system – because of how much it has contributed to the deterioration of many people's health, how strongly it contributes to the climate crisis through emissions, and how badly many farm animals are treated.
Producing “clean food” instead of traditional food would cause much less environmental damage and avoid health problems related to hormones, antibiotics, heavy metals and microplastics in food, he says.
Cost remains the key challenge, but – as he emphasizes – it has already dropped significantly. He adds that he believes that soon large-scale production of beef or pork in bioreactors will be cheaper than raising cows or pigs for slaughter.
Mellon notes that he is deeply motivated to bring about this change. — If I don't make money from it, it doesn't matter.
Advice for the AI era
Asked how young people can succeed in a world where living is becoming increasingly expensive and artificial intelligence is threatening a huge number of jobs, Mellon says he is keen to hire young people – and that other employers should do so too.
— We all graduated from school once and we all got our chance – and we should give it to others too. Now is the time to hire talented people at reasonable rates, when competition for positions is very high – he emphasizes.
Mellon, who wakes up around 4 a.m. and works every day of the year, says young people shouldn't give up.
— Don't close yourself in a shell because you read so many negative things – appeals. — Don't worry about it too much. Just get out there and start doing something – he adds.
Mellon also says employees can defend themselves against AI by developing interpersonal skills, because humans will always need a human touch.
— We must assume that there will be professions that require empathy. Social care will be much more valued. Care for the elderly – as societies age – will also become much more valuable – predicts.
Mellon points out that only 10-15 years ago an entire generation of graduates were encouraged to learn programming, and today these professions are among the most threatened by AI. Therefore, betting everything on the technology of the moment is “probably the wrong way to go.”
Additionally, Mellon — who has ten dogs and no children — says he would support raising the inheritance tax to 100 percent. and allocating these funds to a one-off payment for each young person.
This way – as he points out – “instead of starting your life constantly worrying about money and trying to get enough money to buy a house, you would have some money at the start to do something with your life.”
Note: the information contained in the text is for informational purposes only and does not constitute an investment recommendation, information recommending or suggesting an investment strategy within the meaning of applicable regulations, or any other form of advice regarding the purchase or sale of financial products.
The above text is a translation from American edition of Business Insider
