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local Friday 23 august 2024
Simon Waslander

The Sharpe-Adjusted Altruistic Innovation Portfolio

The holy grail of invest- Wealth distribution has al- my humble view and esti-
ing has always surrounded ways been a contested mation this combination of
around the concept of the topic in various parts of hu- a high return on investment
sharp-adjusted portfolio, man history. At the moment while fulfilling pro-social al-
a theoretical portfolio of the top 1% of the wealthi- truistic goals is quite pos-
assets that maximizes the est individuals control more sible and is achievable at
amount of gain relative to than 50% of all Global as- this very moment.
the risk taken. In this ar- sets this is obviously a distri-
ticle, we seek to introduce bution that is not beneficial Use Existing Wealth Pools
the concept of the altruis- to society at Large at the for Altruistic High-RoI
tic sharp-adjusted innova- moment there are hun- Projects
tion portfolio in which we dreds of trillions of dollars According to a recent re-
will explain how the mo- in capital according to a port by Deloitte in 2024
bilization of existing capi- UBS wealth report in 2024 where they looked at Fam-
tal pools that are already which are in the hands of a ily offices of various ultra- effort by both public and and the economy are far
present and in combina- few very wealthy individu- high Network individuals, private investment parties, too complex for even the
tion with Parototopian goal als family offices and fund we see these parties al- and in combination with most trained mind however
alignment can lead to a managers Imagine if this es- ready looking towards advanced analytical tools together with advanced
radically more positive timated $213 trillion US dol- goals of Affordable Clean in which we deduce what data visualization tools ar-
World in which we create lars were to be mobilized Energy Health, Welfare and will be the best investments tificial intelligence, and
large potential benefits for in projects that possess a the Reduction of Poverty, both in the immediate teams of both public re-
all of Humanity on the way combination of high return Sustainable Communities, term but also in the longer- searchers and private mar-
to a “Radical Abundance on investment for the in- and Quality and Education term and what trade-offs ket stakeholders we can
Society”. vesting party but also most among the main invest- will be made to fulfill the create a model for an al-
importantly aspects of pro- ment targets mentioned United Nations Sustainable truistic sharp-ratio adjusted
Existing Wealth & social altruistic goals that Development Goals. The innovation portfolio. Provid-
Distribution benefit society at large. In Interconnectedness of interconnectedness, trad- ing both investment return
SDGs eoffs, return-on-investment and large societal benefits
What is missing is a coor- and potential advantages both in the immediate term
dinated and concerted for society, our ecosystem and in the long-term struc-
tural way through positive
spill-over effects.
Goal: Radical Abundance
& Paretopian Goal Align-
ment

The huge underlying im-
perative should be the cre-
ation of a society where
resource scarcity as we
currently know it is com-
pletely eliminated. While
at the same time fulfilling
short-term goals of direct
impact on human lives
and our ecosystems. Cal-
culations and analysis by
Oxford researcher Eric
Drexler show that in a so-
ciety where resources are
amplified by over a factor
thousand which he terms
the “Radical Abundance
Society”, there will be a
relative Parototopian goal
alignment for all stakehold-
ers and players within such
a society. In short, within this
context, it will cease to be
beneficial to hoard mate-
rial possessions and not in-
vest in altruistic goals.

But before we reach such a
relatively utopian scenario
we should put immediate
efforts towards the calcu-
lation and creation of the
“Sharp-Adjusted Innova-
tion Portfolio”q