FWR caught up again with Charlie Garcia, the founder and driving force behind membership organization R360. We touched on topics such as AI, energy investment, the more "German" model of capitalism that the US government appears to favor, and more.

Investment in artificial intelligence is helping to drive the US economy's growth, although the technology is evolving so rapidly that understanding its full economic effect is tough, a senior figure in the North American wealth sector says. 

AI’s dramatic expansion will be a powerful catalyst for energy sector investment. The technology’s significant computational demands will drive capital expenditures across both traditional energy sources, such as fossil fuels and nuclear power, as well as renewable energy initiatives, Charlie Garcia, founder of R360, a global, member-driven group of wealth creators, told Family Wealth Report recently. 

Separately, the Donald Trump protectionist [tariffs] policy speaks to a more “German” Mitteltstand model of capitalism which prioritizes manufacturing prowess, collaboration between capital and labor, and less reliance on global financialization â€“ the approach adopted by US policymakers in recent decades, Garcia said.

Garcia, who relishes a chance to engage in a wide-ranging conversation about how investors should position themselves, also spoke to this publication in April in the aftermath of the Trump “Liberation Day” tariff announcement. At that time, R360 members took a generally cautious approach to asset allocation. It appears that this remains the overall picture.

AI is a major theme for Garcia. He strongly advises investors to allocate between 5 per cent and 10 per cent of their portfolios to bitcoin, as a foundational component of an AI-driven economic infrastructure. “Bitcoin and digital currencies will play a critical role in enabling secure, automated transactions within increasingly sophisticated AI systems,” Garcia states. Investors overlooking cryptocurrency exposure may inadvertently miss a fundamental element of the evolving financial landscape. (See FWR’s coverage in this article about custody, for example, relating to recent US moves on cryptocurrency and digital assets issues.)

Energy
Garcia spoke to FWR shortly after the Israeli and US air raids on targets in Iran, which has seen oil prices rise. Garcia predicts that the price of Brent crude oil will likely move in a range of $65 to $75 per barrel.

Linking back to his comments on AI, Garcia said that investors are “mispricing the electricity consumption of AI.” Consequently, he sees continued upside potential for investing into energy, such as the nuclear sector. 

“Look at Warren Buffett – some of his biggest investments are in energy companies,” he said. Moreover, Garcia sees revitalizing the US nuclear industry as imperative from both an economic and national security standpoint, particularly given that China presently leads the US by at least a decade in nuclear reactor development. “Closing this gap must become a strategic priority for investors and policymakers alike,” Garcia emphasized.

Garcia likes, for example, what UK-based Rolls-Royce is doing around the sector of small modular reactors – nuclear power plants that can be built in batches and at scale. “I view Rolls Royce as one of my best investments over the past two years.” In evidence of the trend, Garcia noted that in June New York’s state governor Kathy Hochul pledged her desire to build an advanced nuclear plant with the ability to produce at least 1 gigawatt of power, which would be one of the first new US reactors in a generation.

Garcia is an entrepreneur with a financial sector background and a decorated military veteran. A graduate of the US Air Force Academy, Garcia served as an intelligence officer for five years before transitioning to finance, obtaining an MPA from the University of Oklahoma and a JD from Columbia Law School. He subsequently founded and sold Sterling Financial, an investment banking and wealth management firm.

Garcia previously helped shape US public policy as chair of the US Air Force Academy Board of Visitors and as a member of the Florida State Board of Education, roles in which he focused deeply on shaping men and women of strong character dedicated to national service. He also served under six US presidents of both political parties, providing bipartisan leadership at the highest levels of government. Currently, as managing partner of R360’s Florida chapter, Garcia leverages his extensive experience and influential network to guide wealth creators through today’s complex economic and geopolitical landscape.