July 2021

This newsletter is a collection of things I have found in the last month that I enjoyed, found interesting, or simply wanted to share.

You can follow me more closely at my personal website or if you or someone you know is looking to buy or sell a home, you can point them to my real estate website.

Why do we like what we like?

The Lottery of Fascinations

But the thing is, I couldn’t choose to be interested in sports any more than I could choose to be interested in math or a huge sports fan could choose to be interested in psychology or a gay person could choose to be interested in women. I mean, there’s probably some wiggle room, maybe if I put a lot of effort into finding the most interesting sports and learning everything about them I could appreciate them a little. But would I have comparative advantage over the kid who memorized the stats of every pitcher in both leagues when he was 8? Barring getting hit by some kinda cosmic rays or something, I don’t think that’ll ever happen.

Lord of the Roths

How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank

Open a Roth with $2,000 or less. Get a sweetheart deal to buy a stake in a startup that has a good chance of one day exploding in value. Pay just fractions of a penny per share, a price low enough to buy huge numbers of shares. Watch as all the gains on that stock — no matter how giant — are shielded from taxes forever, as long as the IRA remains untouched until age 59 and a half. Then use the proceeds, still inside the Roth, to make other investments.

Owning Artists

Would You Buy Shares in Your Favorite Musician?

The notion of selling shares in an artist in band raises many intriguing possibilities—too many to deal with here. But let me list some of them.

A band could sell shares in its music, with potential for spinning off ownership of individual musicians as separate tokens in the case of a breakup. One day you own shares in the Beatles, and after the band dissolves, you still control those tokens, but now receive (in a tax-free spinoff) rights to John, Paul, George and Ringo.

Artists could do mergers. So Beyoncé and Jay Z decide one day to issue a combined token. They both enjoy some diversification benefits, and help cement their relationship at the same time.

Artists would be free to issue new shares, provided the cash or benefits received are shared equably among current owners. The end result would be like different stages in venture capital financing. I can already imagine the conversations on Sand Hill Road: “Hey, our firm got into Olivia Rodrigo in the first round, for ten cents a token—and we’re now issuing new tokens at two bucks.”

When artists run into career problems, they could turn to their powerful billionaire owners for help in resolving them. Consider it as the digital age equivalent of Johnny Fontaine in The Godfather, who gets Don Corleone to make an “offer that can’t be refused” to a stubborn movie mogul. In fact, the whole relationship between Frank Sinatra and the Mafia might be considered as a prototype for the artist tokenization business.

Fans would have endless opportunities for demonstrating their loyalty. In the old days, they could buy every album by a favored artist, but in a tokenized world the bar is raised considerably. Even accumulating, say, a 1% stake in second-tier musician might take years of scrimping and saving.

Artists would face the complex financial trade-offs all corporations need to address. Do they give away earnings as dividends to token holders, or invest the money in future projects? The older the musician, the greater the pressure to distribute the profits.

Sign Off

Do not hesitate to reply to this months email to share links, wisdom, or thoughts.

Thanks for reading. Have a great month,

Clay

Hi, that's me!

How kind of you to make your way down here.

A bit about me: I can be interested in anything, for better or worse. I love photography, travel, golf, and baseball. My latest pursuit is learning the guitar. I write a rad newsletter that I publish monthly.

Follow @claycarson on Twitter, Mastodon or Instagram.