Domain Names vs Stock Market: Which is more profitable?

[BostonDomainer]

Ok, let see if a consensus can be reach here (though I doubt it).

1)Which is more profitable in the short run? (take cost of ownership into count)
2)Which is more profitable in the long run? (take cost of ownership into count)
3)Which is riskier in lieu of diversification?
4)Which do you think have more socially responsible investors?
5)Who makes more money in terms of active trading, stock investors or domain investors?
6)Option spread mentality... can it be applied to the domain industry?
7)Is it easier to create a bubble in the domain industry or in the stock market? Which is more detrimental?

You dont have to answer all of these questions, just wanted to throw some these that's been ringing in my head hear your thoughts on them as I've been thinking of leaving the industry for a bit to day trade (sorry Tobin, but your law sucks).

 

[Dale Hubbard]

Take a balanced portfolio with (IMHO) some really good .com domains. There is no 'spread' or 'bubble'. Then take a call on Northern Rock shares to 'balance' your portfolio.

 

[DN BROKER]

the market is a waste and high risk investment. If you are an experienced domainer, you will know that your return on any domain you invest will pay off. My friend lost 100K this week on the market. With that 100K, I could have made him 20-300K in one year. No stock is safe. 100K can generate more money in your domain portfolio vs market.

 

[Dale Hubbard]

the market is a waste and high risk investment. If you are an experienced domainer, you will know that your return on any domain you invest will pay off. My friend lost 100K this week on the market. With that 100K, I could have made him 20-300K in one year. No stock is safe. 100K can generate more money in your domain portfolio vs market.

Lost 100K? Your friend has some serious issues. Tell him to play markets he knows.

 

[DN BROKER]

Lost 100K? Your friend has some serious issues. Tell him to play markets he knows.

My friend doesn't need your advice, he makes more money than you can count. 100K to him is loose change.

The point of my comment is very simple, as litle as $1 a share can make you loose 100K in one market day. Very simple, there is noway you can loose 100K in a domain investment, unless you are a ROOKIE..

Oviously you have no experience with the market, 100K is low number. If you planning to invest less than 200K. You better buy a house or a car.

Even banks will tell you $300-500K is a good minimum start.

 

[DomainMagnate]

Domain Names vs Stock Market..? You gotta be kidding

~MG

 

[Poker]

It all depends on your experience and skills. I've been day and swing trading for 9 years but except for retirement accounts I only invest in domains/sites.

Trading can be very profitable, the problem that most people have is risk/$ managment. Without it, your toast.

 

[PRED]

op2::hungry:

 

[H2FC]

Can't compare one with the other....they are too much different. Unless you have some very good and experienced advisors OR a hell of a lot experience and education yourself in that area you best stay out of the mkt. Luck can only take you so far.

Domaining is a heck of a lot easier and safer.....the potential for profits is much better too unless you have one of the above. Stock markets are not like they were in your fathers time before the computer age.

 

[DN BROKER]

Can't compare one with the other....they are too much different. Unless you have some very good and experienced advisors OR a hell of a lot experience and education yourself in that area you best stay out of the mkt. Luck can only take you so far.

Domaining is a heck of a lot easier and safer.....the potential for profits is much better too unless you have one of the above. Stock markets are not like they were in your fathers time before the computer age.

Well SAID k:

 

[Poker]

Oviously you have no experience with the market, 100K is low number. If you planning to invest less than 200K. You better buy a house or a car.
Even banks will tell you $300-500K is a good minimum start.

No desire to get between you two on this, and this is hardly the forum to discuss trading stocks etc, but as far as trading goes it should be pointed out that if you know what you are doing you can trade for a living with a 50k account (even less). BTW "Banks will tell you" a lot of things that don't benefit you as much as they benefit the bank.

 

[hugegrowth]

I agree that domaining is probably safer. Spending 100k on some good generics with traffic will hold their value, in the stock market it 'could' go to zero - Enron, Laidlaw, etc. Domains are less liquid though, and could be harder to move if you need to in a hurry.

 

[MacyT.]

The stock market will always exist. A mailman can retire a millionaire if he continually invested a portion of his paycheck into a diversified portfolio throughout his career. And throughout that time, he will lose $100K or more through the down cycles - but with compounding interest and up cycles, he can leave assets which are still growing for his grandchildren.

No one can say if this will be the case for domains. Sure, short-term if you know what you are doing - domains make you more. Most are nuts though if they are betting their kids' inheritance on it. Not to mention that while stocks at times are overvalued, we all know what price they are actually selling for any day of the week. There is no SEC or organization that can legally prove that the prices claimed on sold domains and parties involved were legit.

So, while it is common for the guy at work to brag about making 25K in one week on the some secret hot stock, when in fact, he is full of it...there are many who have legitimate concerns about how regular a practice that is in the domain world as well.