The best investment of my life

By: ispeculatornew
Date posted: 12.15.2010 (5:00 am) | Write a Comment  (7 Comments)

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Close followers of this blog will not be stunned to find out what the best investment of my life has been so far. After all, I have written about the current valuations of digital properties or “digital real estate” and how cheaply these valuations were currently going for. It’s not a secret, there are many opportunities in the internet/mobile space right now and I consider myself lucky to have joined in on time. Have I peaked your curiosity yet? No, I’m not talking about an investment in Google from a decade ago (although that would have been a solid investment too), or even Facebook (I have not found an ideal way yet). It’s obviously not MySpace or Yahoo. So what is it you might ask?

M35 inc.

Does that name not ring any bells? Yes, I have to admit, it is a small company with a few part time employees, one full time employee and freelancers… so how could that be the best investment I’ve ever made? Did I load up in shares through a major cash investment? Not quite. In fact, I purchased 5 shares of the company for the equivalent of $7000. That was 2 years ago… If you have not yet figured out what I’m talking about, I mean the online company that owns this blog, TheFinancialBlogger, TheDividendGuyBlog, DoNotWait and a few other properties. We manage everything from our basements but things have been going very well.

So how could 5 shares be such a great investment? Well, in fact there are only 10 outstanding shares so a 50% ownership isn’t too bad right? Maybe at some point we will need to split the shares if we need or want to get other investors in but for now, a 10 share structure is perfect for us.

How good is the investment?

If you want to find out more, information that we publish (we are not disclosing all properties) is mostly available on TheFinancialBlogger. We wrote a post about the year that just ended (our fiscal year ends at the end of June) where revenues jumped from $18K or so to almost $120K! Most of it was either reinvested into the company but the flows of paid expenses that I get every month would be a great return if I got only that per year.. just think about it. If I invested $7K 2-3 years ago and it’s now generating close to $1000 per month, that is a 15% monthly return.

Of course, there is much more involved. The better part of the return is not the paid expenses but the actual value of the company. It has been growing fast and is now worth between $150,000 and $200,000!! As a 50% owner, the value increase of the shares is over 1000% over 2.5 years alone.

Why even bother with the stock market?

I think it would be very easy to consider that investing in the company is the only investment worth the effort. But I am far from thinking that. Like any other business, it involves risk and the environment or landscape could change in the next few years depending on legislation, innovation, etc. For that reason, both personally and soon as a company, we are diversifying with stock market and real estate investments that will give us a better shot at being ok no matter how things turn.

I do have to be fair though

While the investment in terms of money has been incredible, it has been a lot of hard work from both my partner and I but also all of those are have and continue to work on our different ventures. It is not a full time job (we have day jobs after all) but it is significant enough to not be considered a hobby anymore (even though it’s as much fun if not more).

I guess time will tell how much this investment will evolve but in the meantime I’ll take my certificate for 5 shares of M35 and store it in a very safe place…!

How about you, what has been the best investment of your life?

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7 Comments

  1. Comment by Sustainable PF — December 15, 2010 @ 10:24 am

    Very jealous! I’m hoping that you take the feedback from the anniversary on the other blog and share with us (the $6 a month bloggers 😉 ) how to go about building such an impressive empire. I subscribe to all of your sites – simply fantastic material.

  2. Comment by VeRo — December 15, 2010 @ 11:43 am

    My best investment would have been myself! I worked hard to get educated, find a decent job in what I studied and that gave me enough talent and experience to be working with you guys! 😉 Which will surely become my future best investment!

  3. Comment by dwight — December 15, 2010 @ 9:30 pm

    fell in love with my wife –
    found out she was rich…

  4. Comment by Zavi — December 16, 2010 @ 7:58 am

    hehe dwight, remember you are faster than 80% of all snakes. boy, i love that quote!

    IS, congrats on your major investment 😉 Keep it up!! You are doing a great job!

    As for me, education is at the top of my list. I think that investing in myself is key in my life 😉 My second investment is my travels. It helped me to be who I am today, to be independent and to be open to new experiences.

  5. Comment by IS — December 16, 2010 @ 8:30 pm

    @Sustainable PF – Hint.. there will be a major post on TheFinancialBlogger that will major insights.. look for it next week:)

    @VeRo – No doubt:) I think it worked out for the best!

    @dwight – lol..how soon did you find out?

    @Zavi – Haha good one Zavi!! And yes, travel is an amazing investment I did for myself:)

  6. […] far from convinced myself. However, if you think about it, I’ve said myself that the best investment I ever made was in my online company. In second place would probably be the fees that I incurred to invest in myself (exams, school, […]

  7. […] Baker (from the wonderful ManVsDebt) really believe in an elimination of debt while others like my M35 partner believe in using leverage. I personally find somewhere between those 2 point of views. I thought I […]

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