How to get a cut from Justin Bieber's royalties

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:

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:

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)

I hope you learned something today and if you aren’t a subscriber yet, subscribe below.

Until the next issue. 👋