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?
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?If you liked this post, you can consider subscribing to our free newsletters here