We love businesses that make revenue from royalties. What’s so great about it? Well, it has two things that we love.
1️⃣The company (for example, Games Workshop) doesn’t have to put up any capital for these projects, which makes it capital light.
2️⃣And secondly, GW doesn’t have to spend any money. So any incremental revenue from royalties is 100% profit that goes straight to the bottom line.