This week on Equity Mates

Hey there Equity Mate,

A big business story over the past few years has been the value of music back catalogues. With the rise of music streaming, a popular musicians back catalogue can become a consistent revenue stream getting paid out monthly from Spotify and Apple Music.

Some of the world’s biggest musicians have sold their back catalogues and associated streaming revenue - Bob Dylan (for an estimated $300 - $400 million), Stevie Nicks ($100 million), Imagine Dragons ($100 million), David Bowie ($250 million) and Bruce Springsteen (an estimated $500 million).

Last week, another big musical act sold their back catalogue. KISS sold for a reported $300 million.

To learn more about this trend and find out how everyday investors like us can invest in the musical back catalogues, make sure you’re listening to Thursday’s episode of Equity Mates Investing.

That’s just one topic we’ll be covering in another big week here at Equity Mates.

Equity Mates Investing (Spotify | Apple | YouTube)

• Monday - Move over Magnificent 7, meet the Magnificent 11, Bryce’s small cap investment & Compounding continued

• Tuesday - Buy or Sell with Adam Dawes

• Thursday - Investing in music, Pimp my Portfolio & Troubling financial advice

• Friday - Expert: Joe Wright - Three ways to invest in resources | Airlie Funds Management

Get Started Investing (Spotify | Apple | YouTube)

• Tuesday - Your savings account should be paying 5%

Your questions, answered

Locky asked via email:
High income earner for my age (mid 20’s, over 150k) - what insurance should I have?

We put Locky’s question to Phil Thompson, insurance specialist from Skye.

To book a call with Phill and the team, click here.

Some of the biggest life decisions come into play at this age. Maybe it's time to buy your first home or start a family. It's important to take a good look at your finances and consider getting life insurance or reevaluating your current cover. As your financial responsibilities grow, like mortgages, you might need to think about providing for dependents. There are different types of cover to think about, like income protection, total & permanent disability, death cover, or trauma cover.

Here are 4 main types of insurance you may need at this stage:

1) Income protection cover
This insurance protects one of your biggest assets – your income. If you’re unable to work due to illness or injury, you’ll still receive a regular income to meet your financial commitments and living expenses.

2) Life or death cover
Death cover provides financial support to your family or dependents in the event of death or diagnosis of a terminal illness. The payment helps your family repay debts, cover funeral expenses and replace lost income.

3) Total and permanent disablement (TPD) cover
If you become totally and permanently disabled and can’t work, TPD cover helps you pay off debts and medical expenses, make modifications to your home, and replace lost income.

4) Trauma cover
Trauma insurance is paid if you get a diagnosis of a serious illness like cancer, heart attack or stroke. Put the focus on recovery and getting well – an immediate payment helps meet your financial commitments and medical costs.

In your mid-20s and earning over $150k, you're likely facing significant financial decisions. With these insurance policies in place, you can protect your financial future and provide peace of mind for yourself and your loved ones as you navigate the milestones and responsibilities of adulthood.

If you have a question you’d like answered, hit us up at [email protected] or if you’d like to chat with Phil and the team, click here

This email is thanks to Australian Property Scout

The Scouting Australia Podcast is your go to platform for all the latest strategies and information for your success in property investing.

Hosted by Equity Mates regular property expert Sam Gordon, he unpacks everything from Real Life Investor Stories, Weekly Property News Bulletins, Investing Strategies and much more.

Listen in to The Scouting Australia Podcast  on all your favourite listening platforms and start your property education journey. 

What we’ve been reading

Will Liberty Media turn MotoGP into two‑wheeled F1?

Since Liberty Media acquired the Formula 1 in 2017, it has been a runaway success. They modernised F1 by bringing it into the digital media generation. Headlined by the Netflix series Drive to Survive, an increased presence on social media and far more media access to drivers, the past 5 years has seen a new generation of fans find Formula 1.

At the same time, the sport has increased its presence with more teams entering and new races on the calendar - notably the Las Vegas Grand Prix.

Now Liberty Media has turned its attention to another motorsport, with the announcement last week that it is acquiring 86% of the MotoGP. It seems that Liberty Media is planning to do to the two-wheeled sport what it has to the four-wheeled version.

MotoGP’s current ownership has tried to follow a similar playbook. It had its own version of ‘Drive to Survive’ on Amazon, but the series fell far short. So it seems Liberty Media have their work cut out for them.

 The 4-day workweek could be here sooner than you think

This feels like a headline we’ve read before. I’m sure we’ve included something similar in a previous Equity Mates email. Yet, momentum continues to build for the 4-day workweek.

The latest updates come out of the United States as Senator Bernie Sanders introduced new legislation and held a congressional hearing calling for a 32-hour national workweek.

Unsurprisingly, Senator Sanders’ legislation is unlikely to pass. But the momentum continues to build.

What is also driving this conversation forward is the companies that have experimented with the 4-day workweek are keeping it. In 2022, 61 companies in the UK were involved in a six month 4-day workweek trial. Today, years later, 54 companies still have the policy and just over half have declared it is permanent.

For any company leaders reading this, Harvard Business Review published their explainer How to Actually Execute a 4-Day Workweek.

This change isn’t going to happen overnight. Researchers seem to agree if it does come, it is still 5 to 10 years away. For those who remain skeptical, it is worth comparing this current moment to the push for a 5-day workweek almost 100 years ago.

The key moment in that push is seen as Henry Ford’s decision to move his six-day operation to five-days with no change in employee compensation. This came after decades of Union’s pushing for change and strikes across different industries. While the roles of Unions in our working life have diminished, there’s no doubt we’re seeing similar momentum build for a change from 5-day to 4-day weeks today.

If we are ever to see it change, the question becomes which major company will be the equivalent of Ford Motor Company in 1926 and normalise the shorter working week?