Wealth creation 2025: three tipping points in AI, energy and biotech

0:00We are living through the most extraordinary wealth creation moment in human and feline history. And right now, three world historic technologies are hitting their tipping points simultaneously. This isn't just another market cycle. This is a once in an 80 years reinvention that will create $50 trillion in new wealth.

0:24My name is Felix Prehn. I'm a former investment banker. I'm the founder of the Goat Academy with over 20,000 students and the co-founder of Trade Vision. And I've seen three previous moments like this in American history. And each time the investors who understood what was happening became generationally wealthy. And as an ex-investment banker, I've analysed every major wealth cycle of the past century.

0:47The last time we saw this pattern was 1945, post World War II, that boom that created the greatest middle class in history. Before that, if you want to go back further, you literally have to go back to 1865, after the Civil War, the Gilded Age that built America's industrial empire. And what if you want to go back even further than that? Well, 1787, the founding era that established the modern economic system. Each one of these cycles in each of these generational moving events lasted 25 years and created unprecedented wealth for those who positioned themselves correct.

1:31There are three tipping points here. We have AI, not just ChatGPT. We're talking about a $390 billion market growing to $2 trillion. We have the clean energy revolution, the first energy source that's pure technology, not commodity. Costs are dropping 80% over the next decade. And then we have bioengineering. We can now edit life itself for just literally $100. 20 years ago, we could also do that, but it cost $3 billion.

2:08Now, here's the thing about tipping points. Timing is actually everything. But most people think it's about the entry timing. Most people think it's about when they buy. That actually doesn't matter anywhere near as much as you think. Where the real profits, and this is after reviewing thousands and thousands of students' portfolios and how they behave, is actually where you sell. Whether you sell for a small profit or a big profit or a small loss, it's all about selling.

2:36You see, most people leave lots of money on the table because they sell a winner far too early. And then even if they have a really big winner, well, they hold on to it for too long. So they're losing on both fronts. And don't even get me started on losses because people pile up these huge losses, which is entirely avoidable.

2:55So if you're a serious investor and you made it this far, I've got something even better for you than this video, which is going to walk you through the three big shifts in the market. I'm going to teach you live and for free exactly when Wall Street sells. What are Wall Street's rules for selling? Profiting, you could also call it. And we can do that in less than 2 hours and you'll walk away with an insane amount of knowledge and skill that you don't currently possess.

3:22Why do we do it? Because it's insanely satisfying to get the happy messages that I get from you guys every single day. So join me. It's going to be on Tuesday at 9:00 p.m. Eastern time. It's New York time for those of you who don't know what Eastern time is. And all you got to do is grab yourself a free seat and show up. Show up on time. Show up for yourself.

3:43Now, let's dig a little deeper for all of these three sectors that I just mentioned. And just to recap, AI, clean energy, and essentially longevity. Bioscience, technology, whatever, but it's all about longevity, right? Who wants to live longer, healthier? If that's you, put an L in the chat for longevity. The algorithm is going to be thinking, why are all these L's in the chat? It's really weird. Let's freak them out a bit.

4:07The government is committing over $1 trillion to various infrastructure projects, AI infrastructure. We have all these green initiatives, trillions of dollars going into green energy and hundreds of billions going into AI research and going into technology. Venture capital is funding all this biotech stuff at the highest levels ever. Now this money has to flow somewhere and therefore the sector is ripe for the picking.

4:37But let's dive deeper into the first sector, the AI infrastructure. If you just think about what's just happened, Nvidia, which I know as a company that makes gaming cards for nerds, they just reported a $35 billion, not revenue, profit, not for the year, but for the quarter. That's an increase of 94% year over year. OpenAI was just valued at $500 billion. There's a little chat thing you talk to, ChatGPT. That's bigger than most countries' GDPs.

5:14So the generative AI market alone is going to exceed $65 billion this year. That's going to be 5 times higher by 2030. But Wall Street doesn't really want you to know this. The real money isn't in the obvious place. So where is the smart money going? Well, everybody of course is buying Nvidia, but that's not what the smart money is. Cloud computing, that's the customer of Nvidia. That is meant to grow 300% over the next 3 years.

5:4675% of companies are already using AI, but they need infrastructure. They need security, they need integration, and the companies providing these services are trading at fractions of the AI darlings. So instead of chasing the Nvidias or the overvalued AI plays out there, there is a cheaper, much cheaper way to get exposure to this.

6:08Who here has been looking at data centre REITs, real estate investment trusts? Sounds sexy, doesn't it? It's the landlord of AI. Who is looking at cyber security stocks? Let me know down in the comments. That's growing insanely because when you have AI it's getting more powerful, you need more and more security. And then we have hardware semiconductor, not just the manufacturers, the equipment guys. And I talk about those companies all the time on this channel, so check out some of the other videos.

6:42Let me give you an example. Remember the internet boom, 2000, all of that? Everybody was talking about Amazon the whole time. But the guys making the infrastructure for Amazon to be able to do what they do, well, they were called Cisco. They're still around. Do you know how much money early investors made on Cisco? 75,000%. Shovel play.

7:09And today, Cisco equivalents are hiding in plain sight. And they're trading sometimes at 15 to 20 times earnings, while these AI darlings are trading at 50 times earnings. So you got to be smart about where you put your money, right? We've got plenty of videos on this channel. We talk about specific stocks here. I want to give you the road map. Now the road map, nothing else matters.

7:32Secondly, we have the energy revolution. This isn't your grandfather's energy sector anymore. Solar and wind are now actually technology plays. Every time the US doubled solar panel production, guess what happens? Costs drop 20%. That's Moore's law for energy. Have a look at some of the solar stocks out there like First Solar for example. Not having too shabby of a run since May, up 74%.

7:58But the real story is what's happening to the entire energy ecosystem. So for the first time in human history, we have an energy source that actually gets cheaper over time. Oil gets more expensive as reserves eventually deplete. You have a well, you dig, eventually less in it, gets more expensive to pick it up. Solar actually gets cheaper as technology improves.

8:18The Inflation Reduction Act, which is one of the most idiotically named pieces of legislation, allocated $369 billion until 2032 into this sector. Or have a look at another stock here. I'm not telling you to buy these, but I'm telling you to have a look at these. NextEra Energy, they even pay a 3% dividend. And then of course we've got the unloved sector of EV charging.

8:46Now, a lot of the stuff of course Tesla covers. That's another play potentially, but that's going to grow a lot. Now, I don't think energy charging itself is a good business because it's like running a petrol station, which doesn't get me all that excited unless you're selling particularly good, I don't know, Cheetos or something. But there is going to be a wave.

9:07Remember after COVID everyone was investing in things like Plug and I was like, that business makes no sense, right? But at the right price point, even a dumbass business like Plug makes sense. And what am I seeing here? I'm seeing a stock that has collapsed in the most spectacular fashion. It's wiped out 99% of investor money. And it's a stupid business. It just makes no sense.

9:37But guess what? There's a price for everything. And the markets decided that down here was the bottom of the market. And right now it's actually looking pretty freaking good as a short-term play if you know when to sell. If you don't want to sell, better not buy anything at all. Seriously, hold off until Tuesday. I'll teach you when to sell.

9:58But this is an opportunity. And I don't think it's going to go up all the way back to what it was because that was crazy. But what if it just recovers a little bit? Just a little bit of a momentum run. Because if it were to go up all the way back to where it started, well, we'd have to go up 3,000, 4,000%. That's not going to happen. But we don't need that to happen to live fruitfully, happily ever after.

10:22So what have we got? We've got smart grids, grid modernisation, management of that. And you could argue that Tesla fits into that. You could argue that Tesla fits into that or Palantir or some of those players. True. But then look at the valuations. Then we have energy storage, battery technology, again think people like Tesla, grid scale storage.

10:44And so on. And that's really because green energy, renewable energy comes and goes. It isn't continuous like nuclear or something like that. And actually I would add to that also hydrogen. I think hydrogen is going to make a comeback. It's like Posco all over again. Have a look at Brookfield for example. They actually pay a pretty decent dividend as well.

11:06So how do you start with all of this? Well, beginner, always the best place to start. ETF, less risk, broad exposure. Utility stocks that are part of this renewable world could be a good one. You could also look at solar manufacturers. And if you're wondering, well, what about the specific stocks? Well, it's natural you would think that, it's natural you would ask that, but really what you want is learn how to find the stocks.

11:36"No, I don't have the time for that, Felix." Well, then you're always just hoping that somebody else is right. And that's a dangerous place to be because what happens if that person is wrong? Do you know what to do at that point? You don't, right, because you didn't really know where you bought in the first place.

11:56And that's really why I would say to you start with the exit. We build backwards. We need to know where are we selling. What's the goal? What are the rules for selling? Once you know that, we can work backwards and the buying is actually the easy part. So come and join me on Tuesday and I'll walk you through that. Felix.org/training.

12:17Now the third bit and I'm weirdly excited about this. Well, first of all, the whole gene thing. I don't like all the bloody animal testing. I think that's god awful. Surely we need to invent, somebody should invent something for that, but we don't need to do that because that's just cruel evil. But at the same time I'd quite like to live till 130 years and maybe you think that's mad because a lot of people just think you should die in your 70s.

12:38But I look at my granddad. My granddad lived till 96. Most of my grandparents lived into their 90s and they lived through two world wars and hunger and misery, right, and obviously relatively little in terms of medical support. What about me? Well, a fairly cushy life so far. So I kind of think that's a good target. But I want to live it healthily.

13:01I think that's what people always think. "Oh, I don't want to get old because I'll be unwell." Well, longevity science, bioscience has cracked the code of life itself and it's becoming cheapest software. CRISPR, that's a great stock to do some research on. Gene editing, right? We see that's a market at the moment of $4 billion. That's expected to triple.

13:23Synthetic biology is expected to quintuple. Is that the word? We've got FDA approval for gene therapies, treatments for rare diseases. So what's the investment? Obviously everybody's missing, well, there is gene therapy. There's stocks like, I want to write these down and have a look at these, don't just run out and blindly buy them. Krystal Biotech, it's very strong buy ratings. These little 4D Molecular Therapeutics, I don't know what that means, but it sounds exciting.

13:54And then you have the whole pharma supply chain. It's being rebuilt from the ground up because they can do everything faster and cheaper. Now again, you might want to start with an ETF on the sector. Just pick the one with the lowest fees. If you're picking individual companies, focus on the ones obviously with some potential, but focus on the ones that do multiple things because otherwise it's so high risk. They need to have multiple drug candidates, otherwise one failure and they're out.

14:23Look for partnerships. You want partnerships with big ugly evil pharma. Sorry, did I say that out loud? Must be a Tourette's thing or something. You see, I have a condition. Send me some drugs, please. And then look at FDA approval calendars, those are your catalysts, those are your real things.

14:39We've had a few IPOs this year in the biotech space and I'm hugely bullish on biotech at the moment. Apimeds, Medsera, some interesting candidates out there. Fresh opportunities. The gene editing market is going to grow like mad.

14:55But there's a big but. 90% of biotech investments fail. So maybe this isn't your cup of tea. Or maybe this is your cup of tea for 1 to 5% of your portfolio, right? You might be thinking, "Oh, it's too small. I don't care." Well, imagine if that went up by 10x. Suddenly it would be 10 to 50% of your portfolio. If everything else stayed the same, suddenly that would be interesting.

15:21But we have this critical 18 months window ahead of us where I think it is optimal timing that we position ourselves. And that's the real wealth creation machine. It is where all of this combines. It is where we get AI, where we get clean energy to come power the AI because otherwise it'll be unaffordable. And then we get bioengineering which means we get to live happier longer lives. And that's powered by AI which is powered by clean energy.

15:48You see the circle, right? We're going to get AI designed solar panels that are way more efficient, gene edited crops that produce biofuels. And I hate that stuff, that GMO bollocks they're trying to shove down your animals' throats, don't eat it. I think it makes you sick. That's an opinion. You might disagree with that, but I think that's evil stuff.

16:08So I'm very cautious on the whole gene editing thing because you might trigger things you didn't imagine. But AI discovered drugs, well, if you're really sick and you need something faster, that could be a big thing, right? And even if you don't agree with it, well, you can still make money out of it and then put that money to good use to push your own thoughts forward, right?

16:28But look at the internet revolution. Look at the lessons there. Infrastructure outperformed the content guys. Look at the mobile phone revolution. Components companies are beating the applications. Infrastructure made money first. The apps came second. And biotech is something that is very very dependent on interest rates. Lower rates.

16:52So a 1% cut in rates typically gives us a 10% increase in biotech stocks. Could be more of course because the market overreacts. Now retail investors are insanely bearish on biotech. "Oh, it's crazy. It's risky. I don't want to touch it." And that's a classic contrarian indicator.

17:13So I want you to move from the retail investor, not doing any research, just buying technology because it's shiny, and then buying after everybody else has bought. I want you to move in that direction where you have better information, you understand where the money is flowing, and you position yourself before a lot of other people appreciate what the heck's going on there, right?

17:35I'm going to give you a big piece of that puzzle if you join me Tuesday. And Tuesday is literally all about this. It's all about risk management. It doesn't sound sexy, but I can tell you from thousands and thousands of people that we've taught, the number one, the easiest, lowest hanging fruit, the needle mover for everybody is just get a little bit better at this. Get a little bit better at this and you see big outcome.

17:59So how would I position myself for this? Personally, I think infrastructure is still where it's all at. I think infrastructure, cloud is where it's at for AI. The component guys are still overlooked. There's still a lot of that. There's the cyber security. I think it's still overlooked.

18:13Geographically, I wouldn't bother. Everyone always says, "Oh, diversify. Buy something in Indonesia." What do you know about Indonesia? I happen to have some amazing employees in Indonesia. They're lovely people. But I don't know anything about the government or the structure or the business. I just don't know. So it's much easier to buy stocks that are listed in the world's biggest stock market, which happens to be in the US of A.

18:38But this is important. This is critical. You can't just buy and forget. So it's a myth, buy and forget. There are some exceptions. If you want to buy and forget, you can buy the S&P 500. You're done because the S&P 500 does the job for you. The crappy companies fall out of the 500 and the good companies get added. You're going to get average returns, you're going to get somewhere between 8 and 12%.

19:05If you're happy with that, buy the S&P 500, right? But if you're buying an individual stock and you're hoping it's going to last forever, very very rarely the case. There are a couple of exceptions to that rule over recent years. Microsoft, for example, has been an absolute outperformer for a very long time. But most stocks do this.

19:23So you want to capture the gain, you want to get out here, you want to get back in here, capture the gain, get out there. And you might be thinking, "Oh, nobody can do that," because that's what the ETF crowd's been telling you. Well, let me open your minds and join me for that on Tuesday.

19:38So this opportunity is real. Timing here is going to be critical. Not like one day kind of timing, but not missing the boat completely. And I honestly think this is the greatest wealth creation opportunity for many generations because so many things are happening at the same time. And if you understand this, I think you can genuinely capture life-changing returns.

20:00I'm not promising you them, but isn't it worth learning the skill to potentially capture life-changing returns? I certainly think it is. So I look forward to those of you who are serious seeing you on Tuesday live and walking you through this in much more depth because we're going to do education. We're going to do teaching and we're going to do it live. We're going to do it together and it's going to be fun and it's going to drive outcomes, big beautiful shiny.

20:24Outcomes. If you got some value out of this video, let me know down in the comments below and share this video. But most importantly, do something for yourself. Sign up at felixprehn.org/training.

20:34I wish you all the best. If you missed Intel's 50% surge in the last few days or MP Materials' 175% surge since May, what I'm about to show you could be your second or even third chance at life-changing profits.