122. Invest Like a Billionaire: Bob Fraser Discusses Megatrends: Demographics, Oil & Gas, Inflation, and Interest Rates, Part 2

This is the second part of the two-part podcast interview with Bob Fraser. And we pivot today's discussion into the megatrends: demographics, oil & gas, inflation, and interest rates. He discusses the trends he’s seeing and specifically identifies what asset classes will help us capitalize on that trend.

About Bob Fraser

Bob Fraser is a finance and technology executive, with over 20 years of experience, who is passionate about educating others about alternative investments. In 2012, he co-founded Aspen Funds, a fund management company focused on alternative investments, where he is responsible for financial management, portfolio modeling, as well as systems and processes.

Here are some power takeaways from today’s conversation:

[00:00] Introduction

[02:58] The megatrends in demographics

[07:16] The industrial boom in the United States

[15:14] How investors can capitalize on the energy issue

[18:52] How LPs get comfortable with oil and gas

[24:15] Inflation is coming due to demographics

[27:21] Opportunities in the distressed debt space

[32:56] Economic forecasts for the second half of 2023

Episode Highlights:

[04:08] The Megatrends in Demographics

China's population is set to decline drastically in the next 75 years, leading to significant changes in its economy and workforce. This will result in a surplus of infrastructure that may no longer be necessary, and a severe impact on the country's manufacturing power due to the loss of two-thirds of its workforce. The demographic shift will have implications for other countries in Asia, Russia, and Italy, and will significantly alter the world's economic landscape, making it challenging for China to remain an industrial power in the future.

[15:14] Non-operated Working Interests: How Investors Can Capitalize on the Energy Issue

One way to make money is through property rights and royalty interests. However, many people park their money in this way, which can result in low returns. To generate substantial profits, it's essential to have a deep understanding of where the development is going and make smart investments.

Non-operated working interests entail owning leases, paying royalties to landowners, and giving them to other operators such as large oil companies who bring resources and expertise to the table. Revenues are shared between parties, leading to high returns on investment without direct management of operations. Despite the minimal risks associated with drilling due to advanced technology and well-understood geology, many investors are hesitant to take advantage of this opportunity, making it a cost-effective option for those willing to take the risk.

[27:21] Opportunities in the Distressed Debt Space

If you’re looking for investment opportunities, consider distressed debt as a potential option. Despite the risks involved, this type of investment can bring high returns for those willing to take calculated risks. The current market conditions may present opportunities to purchase debt at a discounted rate, with the hope of selling it back at a profit when the company recovers. It's time to overcome your fears and dip your toe into this potentially lucrative area. Keep an eye out for upcoming opportunities that may arise as the market changes.

This show is for entertainment purposes only. Nothing said on the show should be considered financial advice. Before making any decisions, consult a professional. This show is copyrighted by Passive Investing from Left Field and Left Field Investors. Written permissions must be granted before syndication or rebroadcasting.

Resources Mentioned:

Invest Like a Billionaire podcast 

Aspen Funds