Be Patient

https://horizonkinetics.com/wp-content/uploads/Q4-2019-Horizon-Kinetics-Commentary_FINAL.pdf

It is true, nothing much has changed so far. For better or worse, that could probably be said about most of the stocks we own at some point during the time we’ve held them. Even the very successful ones. There have been periods measuring in years during the time we’ve held Texas Pacific Land Trust (“TPL”) when nothing had changed. Lately, of course, there have been ongoing changes at TPL. It is probably common knowledge, now, but can’t not be mentioned, that last week the Conversion Exploration Committee announced that it had arrived at its much awaited conclusion. The Committee unanimously recommended to the Trustees of TPL that the Trust convert to a Delaware C-corp. That recommendation was made with the input of Credit Suisse as outside financial advisor as well as outside legal counsel. It should not escape notice that the Trustees are, in fact, on the Committee, so I suppose they took part in formally notifying
themselves.

The Committee also recommended that if such a conversion takes place, it should be structured so as to be a tax-free transaction to shareholders. Such changes require the customary regulatory filings and approvals, such as with and by the SEC and NYSE. No doubt, we’ll be hearing more in the coming weeks, since the Committee chose to extend its term for one more month, through the end of February. It could as easily have made it two months or three.

3 thoughts on “Be Patient

  1. Well, that’s something. It’s hard to wait sometimes. Patience to do nothing, is hard but that’s the key to investing. Time to read HK Murray Stahl commentary. Am guilty of agreeing with a lot of what he says.

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  2. It is widely known that Steven Bregman writes these commentaries … while Bregman is not a member of TPL’s C-Corp committee – he has worked with Stahl since the late 1980s at Banker’s Trust and helped to co-found HK. These commentaries are extremely unique and insightful.

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