Hi Everyone,
This article's theme has been in the works for a while, but a recent headline I read motivated me to complete it. I’ll make it short since the message is simple.
When it comes to analyzing companies, I attempt to take a different approach than most investors in order to uncover information that they overlook. I refer to it as The view behind the curtain. What exactly do I mean?
I have cultivated a simple mental shift. Behind nearly everything in your immediate environment is a firm that profits in some way. Frequently, these companies are publicly listed (or owned by a public company) and provide various chances with long-term benefits that you can notice before Wallstreet does.
Suppose you read an unsuspicious headline such as the following:
Do I care why he is selling it? No.
Do I care if he’s broke? No.
Do I care how he spends his money? No
All I care about when I read such headlines is:
Who is the potential buyer?
Merck Mercuriadis is the founder of Hipgnosis Songs Fund Limited, a music intellectual property investment company. It was formed on the concept that successful songs are long-term, predictable, and unaffected by economic cycles assets whose value will rise as the global music streaming industry expands.
Here’s what its founder has to say about music as an investment:
“I have always believed that hit songs and music, art in general, has real value to it. What people don’t really recognize is that when a song becomes a proven song, the earnings pattern to it becomes very predictable and reliable, and is therefore investable. And these songs are as valuable as gold, or oil.”
Their portfolio includes the following artists:
Luckily, they are also publicly traded:
I recalled that there is a corporation that is well-known for alternative investments and may actually have a stake in Hipgnosis Songs Fund Limited upon further investigation I found out that I was right: BX 0.00%↑
This brings me to my primary point: Asset managers allow retail investors access to investments to which they do not initially have access. There are dozens of well-managed publicly traded asset managers that invest in a variety of niche industries and can be considered a smarter option to ETFs.
They offer diversification + experience and are a good addition to a portfolio (if you know how to spot the right ones). When researching a stock, examine its ownership structure. You might discover an asset manager that invests in companies whose goods you use on a daily basis but never considered investing in since they are not publicly traded.
Don’t just read the news like everyone else. Read them like a savvy investor who is looking for opportunities from uncommon sources.
(Note: Both Bieber and Hipgnosis have yet to comment publicly on the reported deal)
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Until the next issue. 👋