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The beauty of investing in royalties is there ability to generate revenue with no or limited expenses. If you own the mineral rights to a few acres of land that produce crude oil daily than you own an interest in the production. There is no expense to you because you do not have to invest in the machinery and people its takes to produce this crude oil. Many companies have assets that I label royalty assets because these assets generate revenue with no expenses. How wonderful to have a business that has no costs yet still makes you money. This is like owning a candy vending machine without having to pay to refill the machine yet still collecting the money. There are currently two companies who have a great portfolios of royalty assets. The first company is PDL BioPharma. This company owns the rights to medicine products they created and now charge a fee for every unit of product sold. This is a lucrative asset because its generates revenue with very limited expenses. The second company,and my personal favorite, is RHI Entertainment. This company creates made for tv mini series movies. This segement of the business is fairly expensive because it costs money to produce these films. However,the value is in the companies movie library portfolio. This company charges a fee or collects a royalty every time a movie from its portfolio is played. This is a lucrative asset because the assets continue to collect revenue yet have no expense fees.

PDL BioPharma: PDLI
RHI Entertainment: RHIE

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