Immensely pleased to have been given the opportunity to speak at the Scottish Energy Forum at the historic Geological Society in London yesterday. I would like to thank the organizers, sponsors and the audience.
I guess it is not unusual to find snowflakes in winter.
* Students demand declaration of climate emergency and divestment from fossil fuel companies;
* College suggests turning off heating as a direct measure to help.
* Students reply: “This is an inappropriate and flippant response by the bursar to what we were hoping would be a mature discussion. *It’s January and it would be borderline dangerous to switch off the central heating*”
* Me: LMAO Surely that is exactly the point (on a global scale)…. and yet the irony of the reply appears to be lost on even the brightest and best….
“Old” energy sucks as an asset class, yet not investing in it will undermine the driver of growth (cheap energy) that allows other sectors to soar. No individual investor is incentivized to support the common good.
In game theory, the Nash Equilibrium, named after the mathematician John F Nash Jr. (of “A Brilliant Mind” film fame), is a proposed solution of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy. source
To this we can add that the observation that such an equilibrium is often sub-optimal for all players, but as noted in the description, no player has any incentive to change. Players are “locked in” to a sub-optimal outcome.Continue reading “Brilliant Minds, Sub-Optimal Outcomes in Investing: Ignore Oil and Gas at Everyone’s Peril”