— HORIZON KINETICS LLC —
Corporate Update
The Old New Horizon Kinetics—Going Public but Staying the Same
Horizon Kinetics Holding Corporation Announces Closing of Merger with Scott's Liquid Gold-Inc.
James Davolos on The Pomp Podcast: Turning Your Land Into Bitcoin
In this conversation, James Davolos and Anthony Pompliano discuss oil & gas coming together with bitcoin mining & AI data centers, what is going on down in Texas, how the companies work, impact on artificial intelligence, bitcoin mining, data centers, and where the world is headed.
2nd Quarter 2024 Commentary
This Commentary coincides with the imminent going-public of Horizon Kinetics, which itself coincides with the 30th anniversary of Horizon’s founding in 1994. Those three decades coincidentally bookend the beginning—and what now appears to be the ending—of a unique and extended period for U.S. corporate profits and the U.S. stock market. The factors and trends that brought us to today’s historically record profit margins and equity valuations have either dissipated or, worse, are in reversal. Indexation in its modern guise is a throughline in this entire cycle. Valuation and sector weight distortions can continue indefinitely without a catalyst to trigger a shift to a new equilibrium. However, catalysts are now in plain sight, and they’re not “normal” microeconomic or domestic policy catalysts. For instance, U.S. economic dominance, both absolute and as expressed in indexes, is clearly being challenged by China. This is a systemic exogenous risk, which has profound implications for corporate profitability, valuations and indexation. Identifying the specific risks to standard asset allocations illumines pathways to avoid them and develop more informed investment choices.
Guiding Principles
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Value Driven
We are committed to long-horizon, value driven investing and building long-term, continuous relationships with our clients.
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Research Driven
We rely on our own independent research. Written research, and its discipline, has been the cornerstone of our investment process.
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Contrarian
We are contrarian (fact-based) investors. Our vision is typically opposite the movement of the crowd.
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Long Term Investment Horizon
We measure risk as an impairment of capital. Temporary price variability – ‘quotational’ risk – is not synonymous with capital risk. Returns can be increased by extension of the investment horizon rather than by extension of risk.
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Absolute Returns
Our investment approach stresses absolute returns, integrating fundamental research, discipline and patience with the goal of long-term preservation and compounding of capital.
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Opportunistic
Our strategies are driven by fundamental research and opportunity, not capacity for asset gathering.
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Skin in the Game
We invest alongside our clients and believe that a skin in the game approach is critical to aligning interests.