ALTERNATIVE INVESTMENTS - How To Buy Music Royalties : Royalty Exchange

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MUST READS FOR VALUE INVESTORS - I don’t want to make a course because these books are better than any course. I prefer to listen to them through audible. Here are the links to the books and audiobooks.

Great For Beginners

Invested - Danielle Town and Phil Town (Great introduction to value investing)
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Rich Dad, Poor Dad - Robert Kiyosaki (Mindset and Motivation)
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The Barefoot Investor - Scott Pape (Day to Day Financial Planning)
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One Up On Wall Street - Peter Lynch (Full of Gold)
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Great For Getting Deeper into Investing.

The Little Book of Common Sense Investing - Jack C. Bogle (Index Strategy)
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The Little Book The STILL Beats the Market - Joel Greenblatt (Simple Strategy)
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The Acquirer’s Multiple - Tobias E Carlisle (Simple Strategy)
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The Dhandho Investor - Mohnish Pabrai (My Favorite Investor)
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100 Baggers - Christopher Mayer (My Favorite Book)
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The Education of a Value Investor - Guy Spier (Advanced Mindset for Serious Investors)
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Royalty payments are made generally as a percentage of the revenue generated for using the asset.

It starts to get a little complicated with all the different types of royalties with music. It’s not important to understand how this exactly works, it’s just a bit of background information.
So there is
Performance royalties – Which means, on the radio, in a cafe, sports stadiums.
Mechanical royalties – Think CD’s, Vinyls, or when streamed on Spotify and Youtube (this is why if anyone plays music on YouTube, all the money that video makes goes to mechanical royalties, not to the person who made the video).
Recording Copyrights – This is when a Movie, Tv Show or advertisement plays the song.

Benefits to owning a Royalty
There are two big benefits of owning a royalty.

1. It is an Uncorrelated asset. Which means that other industries don’t really affect a royalty payment. People listen to music when the stock market is crashing. People listen to music when an illness makes everyone stay at home. So if the housing market collapsed, and the stock market went to 0, well the royalty payment would still keep rolling in. As long as people still like music. Royalties will be valuable.
2. It’s very Passive. Music royalties is one of the most passive incomes out there. You can be sick for 3 months, and your royalty payments will keep coming to you. You literally don’t have to do anything.

To do this, the major exchange is called Royalty Exchange. Which you already knew because of the title of this video.

Royalty Exchange is the platform that I’d recommend to find a music royalty.

I’m very new to this asset class, so I am still trying to work it all out. But I think it’s a very strong alternative asset that I would like to diversify into with the right royalty.
But like anything, I will happily be patient and find something that I think is a worthwhile investment.


I hope you enjoyed learning about a different asset class today.


Please leave a comment if you have any questions. I’ll be sure to answer all of them.

See you soon.

Видео ALTERNATIVE INVESTMENTS - How To Buy Music Royalties : Royalty Exchange канала Andrew Brown