I am intrigued by the idea of this — but I know I would invest my money not in what makes the most financial sense, but as fanboy in the bands I love the most. Dire Straits, Steely Dan, Talking Heads, Elvis Costello, etc. (I suspect the Beatles, Rolling Stones, Bruce are not doing this).
I recognize how my own preferences and biases would work against me here. Its sexy, fun, and exciting — all words that have no place in investing. Instead, it should be boring, steady, and evidence-based.
From the website:
Legendary Rock Band Dire Straits
You can invest in a unique manager’s share of sound recording royalties generated by the entire epic catalog of rock legends Dire Straits, as well as the solo catalog of former members Mark Knopfler and John Illsley.This catalog has been earning royalties since the band released their first album in 1978. Since the beginning, the band sold 140 million records around the world, won four Grammy awards, and was inducted into the Rock & Roll Hall of Fame this year.
The royalties aren’t shabby either.
Although the band broke up in 1995, this catalog keeps earning royalties, and will for the life of the copyright. In fact, the catalog’s royalties grew 60% over the last 2 years.
I am sure others can evaluate these sorts of investments objectively, but I know myself and know I would be making portfolio decisions based on melodies, guitar licks and drum fills, not what you want your CIO to be doing.
Hard pass. I’m gonna:
Skateaway . . . That’s all.