XEC - Horizon Kinetics Market Commentary Q1 2021

• Horizon Kinetics LLC, founded in 1994, is an independently owned and operated investment adviser. With a long-term absolute return mindset, and based on first-hand research, our portfolios tend to be concentrated and avoid tracking or mimicking any benchmark or index.
• The short answer to the underlying concern behind these questions is that we were not perturbed when TPL and bitcoin were lower, and we’re not perturbed now that they’re higher.
• Microsoft shares appreciated 600x over the next 15 years. Had they held on, the Private Bank could have become THE Private Bank.
• Many people look at the current market value of an investment as the measure of risk. We tend to look at the amount of capital placed at risk at the time of investment as the appropriate measure.
• After the huge appreciation of the past few years, that 0.5%Bitcoin investment might now be a 10% position, although any given account can have a very different weighting. Is that too large? Should profits be ‘booked’? No, we don’t believe that they should.

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