I don’t want to give you too much to read, since probably the most interesting reading this weekend will be Warren Buffett’s annual letter to shareholders (which should be posted here as part of Berkshire’s Annual Report, around 8am EST tomorrow), but I do have a quick teaser answer to share with you… and a couple earnings-related updates on some Real Money Portfolio stocks…
First, as I was lolling on vacation for a few days this week I got buckets of questions about Marin Katusa’s latest “Forever Royalties” pitch for his Katusa’s Resource Opportunities newsletter ($2,500, no refunds), so I should get you a quick answer… and as you might not be surprised to hear, it’s the same answer as I provided the last time Katusa pitched a royalty story.
Back in June, Marin was promoting the idea of “Independence Day Royalties” with a tease that was very light on clues. I guessed back then that he was hinting at Lucara Diamond, the best match I could identify, and I think that’s still the company he’s teasing today.
Why so? He doesn’t drop a lot of clues, but these are the ones I gleaned from his latest ad, which he calls “Forever Royalties” and says will be “my single biggest investment ever”:
“A disruptive new development—similar to a ‘toll-road’ crossing three continents—will completely turn a secretive $80 billion resource industry upside down….
“I call this opportunity ‘Forever Royalties,’ for two reasons:
“One, because this rare resource can truly last a lifetime…
“And two, because never before in history have royalties on this valuable commodity been available to anyone outside the industry—until now.”
He goes so far as to compare this to having a royalty on email, or on fracking… which is a pretty effervescent level of hype… but he does also drop a few more specific clues:
“It’s publicly traded… but it’s not a conventional royalty stock.
“If you ran a stock screen for ‘royalty companies,’ you’d never find it.
“Basically, it’s a ‘backdoor’ way to collect royalty checks from this $80 billion industry.”
And it’s well-established enough to have the backing of some big names…
“The investment and management team behind this secret ‘toll-road’ opportunity – all of whom I know and have personally worked with – are the 1-percenters of natural resource companies.”
So what does this company do?
“The company itself owns and runs one of the ...