Don’t do me, do you. Be your own investor, because no other investor has the same budget, time horizon, and financial needs that you do.
Audience question: You mentioned earlier about short and long-term investments. So what happens when you have this three letter .com domain name that you’ve had for 10 years and you’re emotionally attached to it but you’ve received a $50,000 offer. Something inside is telling you to wait for 10 more years and see what happens. What would you do in between the short and the long term? Would you just go for it and make some money, by going with the short term, or wait for the long term? Or consider leasing as an option?
Michael: It’s a great question. So each one of us as individual investors needs to figure out what our investment style is. What is our desired outcome?
If we have a great three-letter domain name, is it the right time to sell, or do we hold it long-term? And it comes down to you individually.
I’ve bought a lot of domain names and I’ve sold a lot of domain names as I was learning all the processes in the industry, and I think that is necessary to figure out what kind of investor you want to be.
Do you enjoy negotiating with companies to sell a domain name? Do you prefer to just hold like you do your stock portfolio and wait long-term?
I’m going “Warren Buffet style.” I plan to hold those domain names until I’m 90 years old, and if they’re still not sold, then I’m gonna pass those 10 domain names onto my kids.
So I’m treating it like it’s physical real estate, like if I walked into Manhattan 100 years ago and started buying up land, because I think that great single-word domain names are going to be like land in Manhattan and they’re going to continue to increase in value.
So it’s an individual decision that you need to figure out for yourself whether, “Do I want to take a vacation this year? Is my anniversary coming up? Is it time to buy my kid a new car?” Then maybe it’s time to liquidate for a good price today.
And you need to understand what the market value is today and how everything is cyclical, right? When the market’s up, domains are up. When the market’s down, domains are down because they don’t have a lot of money to spend on this type of asset.
So I can’t answer that for you. It’s just something you need to figure out yourself.
WHAT TYPE OF INVESTOR DO YOU WANT TO BE?
START WITH THAT.
THEN MAKE DECISIONS.