The Market-Proof Asset: 6 Reasons to Add Music Royalties to Your Portfolio

Oct 14

Music Royalty Investing: The Sound of Money

In a world brimming with investment options…stocks, bonds, real estate, crypto…why should a modern investor turn their attention to music royalties? The answer is simple: they offer a unique combination of benefits that is incredibly hard to find elsewhere, addressing many of the challenges faced by today's investors.

For me, discovering music royalties was a breakthrough moment. They checked all the boxes I was looking for in an ideal investment. This framework, which I call the "Six Pillars of Music Royalty Investing," is the foundation of the entire strategy I teach in my new book, The Sound of Money.

Here are the six pillars:

Truly Passive Income: Unlike real estate, which requires managing tenants and repairs, music royalties are the most passive asset I have ever owned. After the initial due diligence, your work is done. You simply collect the payments.
Stable and Predictable Cash Flow: While no investment is without risk, the cash flows from a well-chosen, mature catalog of music are remarkably stable and consistent, generated from hundreds of thousands of sources, from a Spotify stream to a radio play.
Competitive, Double-Digit Returns: Industry data validates the potential for strong returns. The marketplace Royalty Exchange has seen an average yield of 13.3% across its offerings, demonstrating that a disciplined approach can generate significant, competitive returns.
Low Correlation to the Broader Economy: This is perhaps the most powerful attribute. People listen to music in good times and bad. Data shows that music royalty returns have a market beta close to zero, making them one of the purest portfolio diversifiers an investor can find.
Significant and Sustained Industry Growth: You are investing in an industry in the middle of a global renaissance. The recorded music industry has experienced ten consecutive years of growth, driven by the explosion of paid streaming.
Powerful Diversification: While my stock portfolio was in freefall during the COVID-19 pandemic, the knowledge that I was building a position in an asset class completely uncorrelated to the market chaos gave me a profound sense of stability and confidence.

These six pillars create a powerful foundation for any modern portfolio. They're also just one of the foundational concepts I detail in my new book.

Ready to build your own stream of passive, uncorrelated income? The Sound of Money: A Modern Investor's Guide to Unlocking Music Royalty Investing is your complete guide. Order your copy on Amazon today and start building a more resilient portfolio.