RaiseFest 2023 Take Aways

In January I attended Raisefest, a conference for professional investors and investor relations. This is one of the best conferences I have attended, it the presenters delivered top-notch content and I took pages of notes. Here are a few key takeaways I believe will benefit you specifically.

Slowing Population Growth – China is in a negative curve.

Bob Fraser with Aspen funds delivered several stats. One statistic that stood out to me is the slowing population growth across the world. As education, access to health care and birth control increase, the velocity of the population growth in developing nations is slowing. He claims that the US is at currently at a stabilized rate, the concern here is that our population is aging. This will result in more retirees than workers and further compound the labor shortage we are seeing. China on the other hand is in a declining growth pattern, in addition to the issues facing the US they also had a one-child policy for several years. They are facing even more of a labor shortage than the US, this is causing prices to increase at an alarming rate. The price increases in China are bringing more jobs back to the US. We all like things to be made in America, but remember the labor shortage we discussed earlier. Also, this has made me take a second look at industrial buildings. I believe industrial is going to be one of the best asset classes in the future, along with senior living facilities.

Inflation, Wealth Destroyer, or Wealth Creator?

Inflation was a major topic of discussion among several speakers and between attendees. The big thing that stood out to me was how an investor like yourself can take advantage of inflation, simply with leverage. Let’s say you invest in an apartment complex that costs $10 Million and you take a loan out against that complex for $8 Million. If inflation is 3%, all else being equal that same complex should be worth $11.5 Million in five years if inflation averages 5%, your complex would be worth almost $13 Million. In either scenario, you still only owe $8 Million and you get to pay it back with less expensive dollars. I am not saying I am pro-inflation, I am just looking for ways to make the best of the situation.

One of the keynotes was given by Jesse Itlzler, he gave us four steps for an amazing life.

1. Misogie – Once a year schedule a massive year-defining event
2. Kevins Rule – every 8 weeks do something you wouldn’t normally do – think mini adventures
3. Every Quarter add a healthy habit – I.e. drink more water, read, work out, etc.
4. Prioritize yourself, do two things every day that are for you. You can’t pour from an empty cup, you can’t take care of others if you don’t take care of yourself.