"The big money is not in the buying or selling but in the waiting." ~Charlie Munger

The wisdom of Charlie Munger’s quote guides our disciplined approach. Upon reflection, it struck us how frequently we talk about patience. Sometimes waiting, even for short periods of time, can be hard in life and with investing.

We believe we have positioned our investment strategy to take advantage of the significant opportunities of a long-term inflationary cycle. Our investment strategy, owning strategic commodities and businesses with exposure to unique, scarce and productive assets, with manageable or no debt, is an approach poised to deliver outsized returns for an extended time frame.

Navigating a New Era of Scarcity

The world is waking up to the fact there are indeed constraints on scarce resources. We continue to see tangible evidence that we are extremely well positioned to preserve and grow capital in a challenging and complicated market.

Toyota revolutionized manufacturing and logistics with the Toyota Production System. A philosophy and practice to root out waste and inconsistency. Toyota published the official description of “TPS” for the first time in 1992. ‘Just-in-Time’ production became so successful, that others emulated, and why not? Ultimately, the world came to embrace just in time everything. In an era of abundance, why carry excess inventory or excess capacity, if it was only a drain on profits?

Covid upended a good deal of that, revealing shortages of basic, but important products like toilet paper or eggs, and also critical prescription drugs and rare earth elements found in many technology products.

Today as the world embraces a new technological revolution of artificial intelligence, or ‘AI’, it is proving to be a costly endeavor, consuming tremendous resources. “Big Tech” companies are becoming infrastructure companies – just like the steel and railroad giants of the past. As the largest corporations and governments pivot, the world finds itself offsides, woefully ill-prepared as we spent much of the last 15 years diverting investment from the energy and manufacturing companies vital to building out the necessary infrastructure.

We believe we have identified companies that control resources vital to AI development. Fortunately for us, many of these investments still remain overlooked or misunderstood. We continue to acquire long-duration assets, including land, oil and gas royalties and perhaps most valuable of all, water rights.

“An Opportunity Presents Itself”

We participated in our first initial public offering (IPO) in our 25-year history. Piggybacking on Horizon’s role as the lead investor in the recent WaterBridge Infrastructure IPO, we received our full allocation establishing a position in what we expect to be a long-term core holding. The IPO was well received, or oversubscribed as they say, and the offering was upsized to meet investor demand. Shares have risen approximately 25% from the offering in just a month.

Mad River is Growing

As our business grows and the affairs of our clients (and the world) become more complex we are mindful of having a strong team to support us. Gemma Demasi recently joined us to drive administration and client support. Gemma has more than a decade of experience at a hedge fund and a private equity firm. She is an accomplished professional with expertise in streamlining operations and process improvement. We are delighted to have her on the team.

Why are we excited!

Two unprecedented trends - unmatched in our 30+ years of experience, drive our optimism:

• First, our nation has accumulated almost $38 trillion of debt. Interest expense on that debt exceeds $1 trillion annually, which is frankly beyond comprehension. One might think you would see a bipartisan effort to address this. But currently the government is shutdown, as Congress is unable to agree on funding bills. No wonder gold, silver and Bitcoin prices are at or near all-time highs versus our constantly debased dollars. Our investments in Franco-Nevada, Wheaton Precious Metals and Bitcoin have and will likely continue to thrive in this environment.

• The second trend presenting potential opportunity beyond a scale we have seen is our country’s push towards the electrification of just about everything. The continued adoption of electric vehicles, the reshoring of manufacturing or the development of artificial intelligence and high-performance computing, all require outrageous amounts of power generation. After decades of flat or declining electricity demand, growth projections over the next decade present compelling investment opportunities. Through investments in Texas Pacific Land, LandBridge, WaterBridge and others, we believe we have unique exposure to critical resources, namely: land, energy resources, water and strategic minerals.

We believe the next one to two years are likely to be action-packed in this area.

A Year End Review Meeting?

As we begin the final quarter of 2025, we would like to find time to speak with you. Perhaps we share more color on our core investments, recent portfolio activity, or to touch base regarding capital gains for the year, we would like to hear what is on your mind!

Please let us know a time convenient for your schedule. You can identify a date and time that works for you by clicking on this calendar link https://calendly.com/josh-mriver/30min Alternatively, you can always call Josh Stewart at 617-531-1734 or email at josh@mriver.com.

We and our families are the largest investor group at Mad River. We are ecstatic about the potential of our current investments and the opportunity set for our strategy. Thank you for partnering with us.

Best regards,

Rick Silver & Josh Stewart

Mad River Investors

Important Disclosure on Model Performance: For the purpose of presenting historical performance information, we reference and present the performance of our Model. While limitations exist with models, we believe our Model offers a reasonable assessment of the typical performance of our historical investment selections for clients. Our Model is based on a taxable portfolio investing since the inception of the investment strategy in March 1999. The Model is presented net of all fees (adjusted to the highest annual fee charged to clients), brokerage expenses, and includes the reinvestment of dividends and interest. The Model generally reflects the performance of portfolios under management since the strategy’s inception in 1999. Client performance will deviate from the Model due to, among other reasons, the starting point of a client relationship; client guidelines, circumstances, and directives; the size of a portfolio and its relative costs; additions and withdrawals of funds; the timing and historical position sizing and concentration of investments; and the account type and its ability to participate in certain investments. During this period there were no strategies employed to obtain the results portrayed other than those implemented for clients pursuant to the Model and disclosed in our Form ADV. Please carefully review our Form ADV for further information. We encourage and strongly recommend that you discuss with us the application, correlation, and significance of the Model’s performance to our client’s historical returns.

Important Disclosure on Benchmark Comparison: The S&P Composite is regarded as a gauge of the US equity market. This index includes a representative sample of 500 leading companies in leading industries of the US economy. Although the S&P 500 focuses on the large-cap segment of the market, we believe it serves as a reasonable proxy for the US market. Nonetheless, the use of the S&P Composite as a comparison may not be appropriate for a variety of reasons including, but not limited to, Model and client account(s) being more concentrated; volatile; holding cash, fixed income investments, and/or option contracts; being short securities; or the average capitalization of companies comprising the Index not correlating with the capitalization of the companies comprising the Model.

Important General Investing Disclosure: Inherent in any investment is the potential for loss of capital, past performance is not indicative of future results, and the value of investments and the income derived from investments may increase or decrease. It is not our intention to state, indicate or imply that future investment results will be profitable or equal past results. The information presented is meant to form the basis of a discussion with us and is subject to further clarification and explanation during discussions with us. This information may not be duplicated, redistributed, or communicated to others without our consent. This is not an offer or solicitation to any person in any jurisdiction in which such an action is not authorized or to any person to whom it would be unlawful to make such an offer or solicitation. We do not provide tax or legal advice to our clients, and you are strongly urged to consult a tax or legal advisor regarding any potential investment strategy.

This communication may include opinions and forward-looking statements. All statements other than statements of historical fact are opinions and/or forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the beliefs and expectations discussed are reasonable, we can give no assurance that such beliefs and expectations will prove to be correct. All expressions of opinion are subject to change. You are cautioned not to place undue reliance on these forward-looking statements. Any dated information is published as of its date only. Dated and forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any dated or forward-looking statements. Investment process, strategies, philosophies, portfolio composition and allocations, security selection criteria and other parameters are current as of the date indicated and are subject to change without prior notice. 7/2025