The Greater Fool Theory of Investment Is Betting On Future Valuations of Predicted Events

Investing In Royalties Is Participating
In a Company’s Revenues
as They Occur

Currently, using the Dow Jones Industrial Average as an indication of investor experience, even though most mutual funds do not achieve results equal to the DJIA, the last 5 years and perhaps longer, have been periods in which capital was lost.

However, if investors had invested in an established company’s revenues, it is fair to suggest that they could have received royalty payments, probably returning to them the bulk of the amount paid for the royalty, while still holding a revenue sharing entitlement for the full and continuing length of the royalty payment period.

The “Greater fool theory of investment”, which worked so well in the bull market, has failed to be capital protective.

Revenue sharing royalties issued by established companies reflect the degree of success achieved in serving the interests of the company’s customers and are not dependent on volatile market valuations.

Investing in a diversified portfolio of royalties issued by established companies for 10 to 20-year periods is unlikely to experience an overall capital loss in any period.

The purpose of this posting is to alert investors that those bearing the responsibility of investing the money of others will eventually recognize that private company issued royalties are now an excellent investment and that the terms that can currently be negotiated may no longer be available in the future.


Arthur Lipper, Chairman
British Far East Holdings Ltd.
+1 858 793 7100

©Copyright 2020 British Far East Holdings Ltd. All rights reserved.



Blog Management: Viktor Filiba

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