Pythia Capital: Investment Strategies for a Sustainable Future
Our Mission
Pythia Capital explores investment strategies for complex global problems using living sustainable systems as guiding principles. Our fundamental goals are to address the root cause of our societies’ complex problems and develop effective investment and business strategies to address them.
The Challenge
To accomplish these important goals, we must be honest about the dysfunctional, global, socio-economic issues that enable:
– Highly uneven income distributions
– Unhealthy living conditions
– Chronic “boom and bust” cycles in our global societies
While these issues are complex and challenging, we believe that change is possible:
– One step at a time
– One business at a time
– One investment at a time
We can come together and find solutions that start to change things for the better. At the very least, we can begin to organize ourselves differently and engage with each other using more thoughtful and ethical intentions.
Problems with Existing Economic Frameworks
Central Bank Interventions
Global central banks have engaged in unprecedented maneuvers to stabilize and stimulate economies worldwide. Despite these efforts, global economies still suffer from:
– Large debt overhang
– Extreme income disparities
Unintended Consequences
These efforts have had unfortunate byproducts:
– Exacerbating income inequalities by inflating global asset prices, benefiting the asset-rich ultra-wealthy
– Increasing greed, arrogance, and herding behavior in investing, business, scientific, and technical areas
– Creating numerous asset bubbles worldwide
– Encouraging “short-term decision making” as people rush to capitalize on potential upside
Power Imbalances
– Increased power in big global companies and unlimited lobbying has resulted in crony capitalism
– This power shift comes at the direct expense of the working class, the environment, and the general health and well-being of people and animals
Fear of Change
– Many people fear that necessary societal changes will result in loss rather than gain
– This fear further divides people, making changes more difficult
Chaos and Control
– Inevitable chaos occurs as we shift from one set of systems to another
– In attempting to manage this chaos, many governments, businesses, and financial systems use linear, command-and-control processes to force order
– This approach increases fear and despair while destroying innovation, freedom, individual creativity, and the environment
Educational Shortcomings
– The principles of economics and capitalism taught in universities and schools are based on linear models
– These models do not reflect the true, complex nature of these systems
– This results in the few controlling the many and unintended consequences that destroy our freedom, health, vitality, and the environment
A Path Forward
We believe that following natural intelligence can help us:
– Balance order and chaos in a healthier and more congruent way for the whole
– Find and apply breakthrough technologies and science for complex problems
– Implement solutions in a more organic way, steering us away from a dystopian and Orwellian path
Diversity, intrinsic creativity, inclusivity, health, vitality, and balance are only possible in our global societies with economic systems modeled on the natural intelligence of nonlinear, complex adaptive systems. Advanced science and technology are just catching up now to the wisdom of natural complex systems.
Conclusion
At Pythia Capital, we’re committed to exploring and implementing investment strategies that align with these principles, fostering a more sustainable and equitable future for all.