Hey guys! This episode, we have James Davolos, from Horizon Kinetics, as a returning guest, sharing valuable insights on various topics. James discusses the nature of sticky inflation and the distinction between structural and cyclical inflation.

He also dives into the royalty business model in the precious metals industry, exploring its history and the concept of streaming agreements. James provides insights on exiting a royalty business and emphasizes the importance of conducting due diligence on high-quality royalty companies.

• [0:00] Inflation is going to be sticky
• [6:00] Structural vs Cyclical Inflation
• [12:00] Royalty Business Model in Precious Metals
• [15:00] History of the Royalty Business Model
• [20:00] Streaming Agreements
• [28:00] Getting out of a Royalty Business
• [33:00] Due Diligence on a High Quality Royalty Company
• [46:00] The worst time to be in a Royalty Business
• [1:02:00] More from James and Closing Questions

If you like what you heard, find out more about Horizon Kinetics here.

Finally, thanks to the following sponsors for making the podcast a reality!

Mitimco

This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns to support MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.

I highly recommend the site for those looking to start a stock-picking fund or learn how others have done it. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers, and more!

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I spend nearly all my time reading Tegus calls on existing holdings and new ideas. And I know you will too. So if you’re interested, head on over to tegus.co/valuehive for a free trial to see for yourself.

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