Keep pulling the thread on James Davolos.
James Davolos predicts the global economy is in the early stages of a very long cycle of structurally higher inflation.
James Davolos asserts that a significant amount of real estate in the United States is "essentially frozen" because it was underwritten at capitalization rates based on perpetual 2% maximum risk-free rates.
James Davolos argues that the market will find it difficult to return to the narrative of software as an "unassailable moated business" because the risk to perpetual cash flow assumptions from new technologies is not easily resolved.
Physical energy traders report that in parts of Southeast Asia, the delivered cost of oil is equivalent to $200 per barrel.
Since its 2007 IPO from Newmont, Franco-Nevada has produced three times its original 2P reserves from its existing asset base, with remaining reserves being another four times that amount.
The business model of financial exchanges can produce operating margins of 40% to 60% due to their capital-light nature and revenue generation from transactional volume.
James Davolos's current mandate at Horizon Kinetics manages approximately $1.6 billion in assets across US and European versions of the fund.
As of the last quarter, Horizon Kinetics had just over $11.5 billion in total assets under management.
Horizon Kinetics underwrites investments for a minimum of 5 years, with an ideal holding period of 7 years to forever.
The US Consumer Price Index (CPI) is heavily dependent on housing, which accounts for approximately 42% of the index.
The US CPI uses "owner's equivalent rent" for owned homes, a survey-based metric, instead of more direct measures like the Case-Shiller index or Zillow data.
James Davolos speculates that potential new Federal Reserve chairman Kevin Warsh may seek ways to adjust CPI measurement to justify rate cuts while shrinking the balance sheet.