opinion Google shares * VS * LLLL.com domains

[bonin]

Why is it more profitable to invest in domains than in Google shares

I found an old topic ( from 2010 ) in NamePros, where someone has been put up for sale 4 letter .COM domains with BIN option and I became interested, so I decided to check whether it was more profitable to invest $250 in one Google share or with this $250 to buy ten 4 Letter .com domains.


I will not publish domains, because they are not mine … but see for yourself

Hello everyone.
I’ve the following LLLL.com for sale.
You can find the price, registrar and expiration date.
Payment through Paypal from user with 3+ Itrader.
Post “SOLD” to claim.
Thank you.
@ GoDaddy
R***.com October-2010 25$
R***.com October-2010 25$
D***.com July-2010 22$
F***.com July-2010 22$
O***.com July-2010 22$
Q***.com May-2010 22$
U***.com July-2010 10$
L***.com July-2010 10$
L***.com July-2010 10$ SOLD
L***.com July-2010 10$

Total price for the 10 domains: $ 178



During this period, shares of Google have traded at a price of

Date Open High Low Close
Mar 26, 2010 282.35 283.41 279.73 281.06
source


So with the $ 178 we could buy 10 x LLLL.com or for $ 282 x 1 Google share, and at today’s prices gets pretty interesting …..

10 x LLLL.com at an average price of $ 480 for a domain is equal to $ 4,800, but what happens to the shares of Google today – currently one share is traded at a price of $ 732.01 – Mar. 24 2016.

So 10 domain today would bring a net profit of around $ 4600, while one share of Google will fetch only about $ 520 – do not forget the $ 100 difference in favor of the domains.

Realistically, we can lost about $ 4,000 for a period of six years …… if we do not invest our money wisely.



P.S. To my regret, in 2010 I had not heard anything about domains

 

[Sam Hambling]

Is your conclusion that share / stock investments do not offer as greater return potential as domains? By 2010, Google was a pretty mature company. $289 was the 52 week high for Google. Their shares currently trade at $735.

Realistically you would be in the Warren Buffet/ Benjamin Graham/ Peter Lynch category to get a 20-30% compounded annual return but it is possible (especially when you are not managing billions of dollars as they are/ did). A 20% compound return would turn $1 into $3 over 6 years. A 30% return would turn $1 into $4.8. So yes, domains have offered greater returns over the last 6 years.... Domaining has been more risky and therefore commanded greater returns. One of the biggest benefits of domains in the past is that you could register good ones for normal reg. fees so your risk was very low. That's not really the case anymore so the risk has increased. Therefore your win % has to be pretty good.

Consider this.... Bitcoin in July 2010 was trading at $0.08. $178 invested in BTC would be worth $945,000 at the current $424.98 price,

 

[Apprich]

Many would answer your post very skeptical in the current domain market. However, I will not do this. Because, I believe what we see in the domain market today is extraordinary natural development of digital era. Because when you look at the stats of internet development in the world you can easily understand especially in Asia.

There has been long discussions of similar topic on np in recent months still not ended. It's now reality that there is big money flow from west to east, and Asian countries booming in technology and internet.. They are going to be future of digital era. This is their vision while west stays skeptical about this, they keep investing on digital world. I can see in the future, internet users will be doubled up in a short time by world scale. This means that we will have big internet market and economy globally.

It's maybe just the result of mobile revolution boosted up internet users all around the world. This is why ICANN decided to release all the generic tlds because they have seen that it's coming. and it was gonna be big demand in future. And also read the book of Eric Schmidt former Google Ceo about The New Digital Age, explaining about how internet will be flooded by Asian users in the future.

However I believe one thing ICANN didn't predict about why Asian culture would buy gtlds which are all English keywords? Or maybe they did make precise calculation Asians would buy old tlds and western would go for gtlds? I don't know but somehow where as gtlds were expected to be consumed by Asians. However, Asians decided to go on short domains in tlds. That's why your 10x 4L.com boosted up in value. I would say it's lucky bet or smart bet comparing stock of Google.

 

[Recons.Com]

LLLL.com bottom prices are more in 260-300 range, not $480, so you would have made probably around $2500, not $4600.

Other than that, the whole exercise in the OP's post is meaningless...