December 6th 2021

Why I’m Investing in Real Foods Over “Fake Meat”

Dear Rebel Investor,

Bill Gates wants to take away your meat.

In fact, he thinks there should be laws restricting the amount of meat you have access to.

Self-serving?

You bet.

See, Gates is a co-founder, along with Jeff Bezos and Google, in a private plant-based meat substitute producer called Impossible Foods.

He’s also personally invested in, or invested in via Breakthrough Energy Ventures, other producers of fake meat.

These companies include Beyond Meat (Nasdaq: BYND) and privately held Memphis Meat.

In my mind, Memphis Meat is an especially hideous fake meat producer.

I say that because it’s currently producing synthetic meat in a lab through mass culturing of animal stem cells.

These cultures are often “brewed” in a solution containing bovine serum, hormones, growth factors and other food additives.

Sounds yummy, right?

So why is Gates so gung-ho on fake meat?

He believes that vastly reducing worldwide meat consumption will help reverse climate change because of all the energy that’s required to raise livestock.

To that end, he thinks rich countries should swap out real meat for fake meat.

He also wants the world to drink much less milk.

To help make that happen, he recently backed a biotechnology start-up called Biomilq, which is developing lab-cultured breast milk.

He talks about his anti-meat crusade in a book he released in February 2021.

It’s called, “How to Avoid a Climate Disaster: The Solutions We Have and the Breakthroughs We Need.”

So how’s he going to get people to choose fake meat over the real thing?

In an interview with MIT Technology Review, he says that people’s behaviors should simply be changed so they can learn to like it.

That’s why fake meat has been pushed so hard in the media for the last few years.

And if that doesn’t work?

Then regulations, he says, could be used to totally shift demand.

In other words, if you don’t cotton on to the idea of eating fake meat on your own, then he thinks anti-meat laws could do the trick.

This cockamamie plan is so rife with hypocrisy, I don’t even know where to begin.

For one, his PR campaigns have gone so far as to call lab-grown meat, “clean meat.”

But research published in Environmental Science suggests mass producing fake meat could actually require more energy than conventional animal meat.

Then there’s the issue of Gates’ well-crafted PR campaign that paints him as an altruistic philanthropist committed to saving the human race from climate change.

Yet the way he lives personally suggests he’s playing out of both sides of his mouth.

See…

Gates is arguably the world’s single biggest polluter

For example, did you know that he has a 66,000-square-foot mansion?

Who in hell needs a house that big?

The energy used to power residential homes (heating, cooling, cooking, etc) accounts for 10.9% of the world’s 50 billion GHG emissions per year, only slightly less than the 11.9% that road transportation contributes.

He also travels in a private jet – a Bombardier BD-700 Global Express that uses up to 486 gallons of fuel every hour.

So if he’s so concerned about saving mankind from climate change…

If he’s so hell-bent on leading the charge to do so….

Then shouldn’t he be leading my example?

He’s setting an example all right.

He’s pretty much saying it’s up to the little people to make the sacrifices necessary to cut back on their carbon footprints.

But such sacrifices apparently don’t apply to Gates himself.

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Gates is also stockpiling hundreds of thousands of acres of farmland

In fact, he owns more farmland in the U.S. than any other private farmer – a whopping 242,000 acres.

So what’s he want with all that farmland, anyway?

That remains to be seen.

But it’s worth noting that when you own the land, you also own the water beneath it.

So with all that land…

And with all that water…

He’ll be able to grow all the genetically engineered soy necessary to create the fake meat he’s so heavily pushing.

The bottom line is he wants the world to reduce its consumption of meat and dairy by 90%, and he’s trying to use his vast wealth to make that happen.

Christine Nobiss, founder of the Great Plains Action Society, which is led by indigenous people, has accused Gates of colonization.

She’s among those who have suggested that Gates should give away his farmland as an act of reparations – as a way to ensure it’s used for sustainable food production.

Fat chance of that happening.

We’d bet he’s not going to sell any of his houses, either.

Nor is he going to get rid of his private jet.

Can Gates succeed in bludgeoning the world to his will?

Maybe.

But I suspect that too many Americans will inevitably reject his fake meat.

There are signs that’s already happening.

For example, shares of Beyond Meat slumped as much as 19% on Nov. 11.

The reason is, the company came out with a weak sales forecast, citing slowing demand at restaurants and grocers for its products.

This slowdown, or course, raises questions about whether Beyond Meat’s business is nearing saturation.

So are there any investment indications on the drop-off of fake meat?

Not really… although you could invest in companies producing real food.

Perhaps the best play would be to buy companies investing in farmer’s markets.

One worth considering is Sprouts Farmer’s Market (Nasdaq: SFM).

It’s a $3 billion company out of Phoenix, Arizona that offers fresh, natural and organic produce, meat, and seafood throughout the U.S.

It also offers non-perishable items, bulk items, frozen food, as well as beer and wine, and natural health and body care products.

As of July of 2021, it operated 363 stores in 23 states.

2021 has been a good year for the company, as its stock has risen from $19.42 to $27.09 – a respectable 39.5%.

It could well do better in the coming months and years.

Well, that’s all I have for today.

Your devoted-to-real-food-for-real people contributing editor,

Doug Fogel
Contributing Editor, Dear Retail Investors

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