Part of my long term investment strategy is purchasing established websites, preferrably Ecommerce or database driven websites. I use a strict data approach in analyzing whether I’d purchase or not or even if it would be more cost effective (after considering opportunity cost) to build the website myself. I also take into consideration if the investment would “tie me down” to a specific location and whether or not it can run on auto pilot with minimal supervision by myself.
Think this is a bad idea? There are PLENTY of outside investors, for example, who own many stores, shops in malls and shopping centers. They visit every once in awhile to check in…. but they are not involved in the day to day operations. It would be impossible to micro manage a portfolio of 20 or more businesses… For example, in my home state of WV, govenor Jim Justice owns over 100 personal businesses. (Source:WV Gazette Mail) He also names over 50 publicly traded companies he has stock in. Do you think he micro manages all of that? Not hardly… So anyway, my goal is to do the same but in CyberLand! I don’t recommend this for those who don’t know what they are doing… It’s a dog eat dog world even in CyberLand… and this has been my way of life (studying this sort of thing) for over 17 years…. so with that being said… let’s get down to crunching some numbers..
Click on the link below to get details on the website and how I analyize the data…. the table simply shows a summary. Below the summary table I will summarize the positives and negatives of this potential acquisition and state whether I’d purchase it, build it myself or forget about it…
