Industries of the future - A long term investment model

Paz Itzhaki-Weinberger, 10-Apr-2012




I have decided to post this, based on my post done in the Hebrew language on March 3rd, 2012, as I find this article crucial for the understanding of the rational behind my new start-up, Weinberger Wealth.


This particular post is short and deals with 2 subjects:


The first one (also the title of this post) deals with the industries of the future and a model I created for long-term investments.


The second one (indirectly related to the industries of the future and long-term investments) deals with how our predecessors, our previous generations, abandoned us shamefully – and with your permission I will start with this one, as it is really short and after a few minutes of reading will be totally understood by you and will also serve as a proper prolog for the following topic.


So what do I mean by saying “our predecessors, our previous generations, abandoned us shamefully”?


Well, we all had previous generations – parents, grandparents, great-grandparents and so forth. Could these previous generations guarantee that we and all our relatives will be lifted from all financial worries? What would this require them to do in order to guarantee this?


To examine this topic, let’s take a stable environment (state & politics) – for instance Switzerland which exists in a relatively similar manner since 1292 until today, or even the United States of America (USA) in the last 200 years or so.


And now, let us take a journey back to the past, just 100 years ago, and imagine that one of our relatives chose to deposit for us a small sum equivalent of 1,000 USD of today (lets say a small monthly wage) in a Swiss bank, in a very conservative plan, a solid one, guaranteed by the government, that ensures an annual interest of just 4% plus follows indexation. Our relative instructions to the bank were clear – the money is not touched in any way and the plan becomes liquid and withdraw able only after 100 years exactly have passed.


The meaning – the relative actually gave up the sum of money (which is a small one) in favor of the future generations, and will never enjoy this throughout his lifetime.


You might not believe it, but this small sum will grow (base only!) in 100 years to no less then 50,000 USD, and if we take an average inflation rate of just 3% per annum, it will grow in 100 years to no less then 811,000 USD !!!


And what if our relative left instructions to the bank to wait 200 years instead of just 100?

Well, the base sum would grow to no less then 2,500,000 USD, and with the above mentioned indexation and inflation rates would reach the fantastic amount of 703,000,000 USD (703 million USD)!


The actual meaning is that if a relative of yours, even a useless person earning just minimum wages, was clever enough to leave one of his meager salaries “frozen ion time” for you for a period of 200 years, thus sacrifice a single monthly wage on this and not on buying some nonsense, you and your family could have inherited today a fortune of over 700 million USD!


Furthermore, if your relative would place a more significant amount, for instance a sum equivalent to 20,000 USD and not just 1,000 USD, in 200 years time we are talking about a fortune of 14 billion USD (yes – 14 BILLION USD!!!) It is important to understand – money generates a lot of power when time passes (due to the factor of interest on interest), especially when not used, and in fact all of us have the ability to dramatically change the lives of our future relatives, only if we are wise enough to do so – unlike our previous generations who didn’t think or care about us.


This is really just a small trailer to make you curious – I developed a much more complex model which allows people who are wealthy today and have millions of dollars free for investment to create a unique legal structure to preserve the family wealth and make it perpetual, and even strengthen the wealth significantly, neutralizing all risks that exists naturally and actually “immunizing” the wealth – a new concept named “Wealth Inoculation”– making sure the wealth is immune to poor business decisions, to political instability, wars, revolutions, divorce, death, family disputes, legal complications, foreclosures, bankruptcy etc. – In fact this is my next start-up company, which is the first legal start-up in the world, aimed for ultra-wealthy individuals, with emphasis on long-term financial thinking – this new start-up actually forms unique legal structures enabling wealthy people to guarantee their family is left perpetually wealthy, and if not forever then at least for a few centuries, and that is made sure even if future generations are not successful and/or intelligent as the founding generation is, and even if they make fatal financial mistakes along the way.


And as we are now discussing the long-term, I will reach the topic which is the title of this post – the industries of the future.

Again, this section will be written in a perspective of 200 years back.


Take a moment to consider the large companies you are familiar with today:

Take automobile companies such as Honda, Mercedes or Ford – did such an industry even exist in the year 1812? Of course not!

Take aircraft companies such as Boeing or Airbus – did such an industry even exist in the year 1812? Of course not!

Take software companies such as Microsoft, Oracle or SAP – did such an industry even exist in the year 1812? Of course not!

Take PC and Microchip companies such as Dell, Apple, Intel or AMD – did such an industry even exist in the year 1812? Of course not!

Take Pharmaceutical companies such as MSD, GSK or even Teva – did such an industry even exist in the year 1812? Of course not!

Take the big oil companies such as BP, Shell or even all the oil drilling industry of the Middle East countries – did such an industry even exist in the year 1812? Of course not!


But why go far as 200 years back?


Take the cellular phone giants – and go back just 30 years – where were they?


And if we go just 30 years back in tome, do you remember market giants such as KODAK? What happened to it today? Wiped out by digital cameras….


The point I’m aiming to is that there are actual revolutions in the world, forming entirely new industries – and with these revolutions new capital changes the hold of wealth in the world entirelythe rate of these revolutions is just increasing, so if in the past it would take a specific industry 50 years to dissolve, today it can happen in just 10-20 years.


Think for a moment what would happen if you could be beamed 50 years into the past using a time machine, and give you just 100,000 USD to buy stocks of various companies – obviously you could buy in virtually nothing stocks that are worth today a fortune, as you would know which industries are going to evolve and which has the best potential – and it is likely your would spread your money on a variety of companies and today become a major shareholder of Microsoft, Apple, Google, IBM, Intel, Boeing, Airbus, Dell, Oracle, SAP, most major automobile manufacturers, invest in Gold, Oil etc.


And the return on your money – it is obvious that that in just 50 years you could have doubled your money 4,000 times or 5,000 times easily – so instead of just 100,000 USD you would have 500 million USD!


A part of the “trick”, by the way, is not just anticipating which industry is going to evolve and succeed, but also identifying the specific companies and people which the ability to lead, manage and create their business into global businesses – this, of course, makes the investments slightly more difficult.


To my best of knowledge, a time machine has not (yet) been invented, so unfortunately what I describes isn’t possible – yet we all know our current knowledge has priceless retroactive value, and that if an ability to warp back it time existed every idiot could have made a fortune – just watch the “Back to future” series of movies with Michael J. Fox – and especially the second movie of the series with Biff….. If you don’t know what I’m talking about – you must go see these movies… J


So why am I babbling about something completely theoretical?


Well, because it is not – there is an entire science out there called futurology, trying to anticipate how the future is going to be like, so we can closely assume which are the future industries.


You must have read lately about the spider goats (goats with spider genes which produce milk containing spider web, to manufacture bullet-proof vests more powerful then Kevlar), or the fuel yeasts (yeast that manufactures diesel from sugar!) or Ray Kurtzweil’s singularity, or artificial intelligence (robots / airplanes without a pilot, unmanned war tanks) and even on artificial production of limbs and organs for human transplants.

What will happen to 100,000 USD you have today if you invest them in 100 such companies? Where will your wealth be 50 years from now?


Well, assuming you really suck in predicting the future and will only get 2% accuracy (you will identify just 2 such companies out of 100 investments you make) – in 50 years time your grandchildren will get “just” 10 million dollars from you.


If you are really good in predicting the future (and also in identifying companies with the potential to become global businesses) and 20% of your investments will be accurate – In 50 years time your grandchildren will get 100 million dollars from you!


What I’m saying is that your own future and also the future of your family “depends on the future” – If you make the right decision today, when young, when you are old you could become ultra-wealthy – and one of my major projects these days includes perfecting a model to both analyze the future industries (in long-term ranges – 25-100 years from today) and who are the entities that are likely to survive and prosper during that long range, and perform investments accordingly, where I consider also to offer others to join and invest with me by using this model, under my management.


To sum is all up – a very interesting an exciting time is ahead of me, I am certain that the best investments are long-term and even very long-term investments, that the chances of such investments (especially when done wisely) are the best, and that the chances increase even further when the investors are willing to invest money for many years or even forever – not enjoying the money in your lifetime but dedicate it for future generations – I am actually certain that only people who can afford giving up significant funds for long-term investments and for future generations can guarantee the financial prosperity of their future generations  - so I have 2 huge projects ahead of me that I’m currently working on – both are being established these days under one umbrella called “Weinberger Wealth”:


The first, as I described above, is a project to preserve the wealth of the already wealthy for centuries and ensuring the ongoing financial prosperity of their families  - a project which fits those who are currently ultra-wealthy and with available capital for investments, heads of state etc.

The actual meaning is that a person who is wealthy today will be able to guarantee his children and all future generations will continue to enjoy from his financial strength for hundreds of years to come, even if the world changes dramatically and even if they will make poor decisions and huge mistakes – a person cannot know who the son of his grandchild will marry or what kind of person he will be, and the project also makes sure the spirit of the founder will survive, and his wishes will act and be felt in everyone’s life even centuries after he died.


The second, is a project aimed for ordinary people and not to particularly wealthy individuals, and ones could enter it even with a small investment of just 50,000-100,000 USD, but with a long-term commitment, aimed to futurology and predicting the “future industries” – again this project is aimed to individuals willing to give up enjoyment from these funds throughout their lifetime or postpone it for many years to come – the purpose of the project is that in just 3-4 generations the descendants of the investors shall become ultra-wealthy themselves, by precisely locating the companies that in 50 years will become multi-billion dollar global corporations and acquire valuable stake in these companies for virtually nothing, at the right timing.