Successful domain name investment strategy,5 key points

A renowned foreign author, Ben Carlson, has written a column titled "My 24 Thoughts on Investing." Ben Carlson discusses traditional forms of investment, including stocks, bonds, and ETFs. Five of these investment viewpoints are equally applicable to domain name investment. Let's take a look.

1. Keep It Simple and Beat Complexity

The simpler and more memorable a domain name is, the more valuable it becomes as an investment, particularly for .com and .ai extensions. Domain names consisting of 1-3 letters are undoubtedly more valuable than those with over 5 letters. However, most short domain names were registered many years ago, so acquiring them may require dealing with domain name brokers.

There are numerous instances of high-value transactions for two-letter or three-letter domain names on the internet.

2. Adhere to Discipline

The domain industry is filled with instances of poor domain acquisitions. Sometimes, investors lack patience and hastily decide to abandon domain names before their value significantly increases.

I believe that as an investor, having unwavering confidence can make you more money than any other trait. I've met many highly intelligent individuals who are poor investors because they lack the right mindset.

I think domain investment is similar. Sticking to discipline in your approach, including a willingness to learn and putting in the effort, will pay off over time.

3. Some Investments Will Fail

No matter how careful your research, there will be times when you experience investment failures. It's just a part of investing. Domain investment is no different; sometimes, we invest in domain resources that ultimately become worthless, leading to the next point.

4. You Must Bear Risks

All investments come with risks, and risk and reward go hand in hand. Therefore, risk management is crucial, and managing risk is a significant part of portfolio management. However, it's impossible to completely avoid risk. While no one can predict the specific risks associated with investment decisions in a particular domain, planning ahead is always better. If not, you must be prepared to accept the risks.

5. Know Your Investment Blind Spots

Many domain investors are very clear about what they will invest in and what they won't. However, at times, it's easy to be lured by significant sales or read about emerging technologies and make hasty domain acquisitions that you later regret. While making these mistakes is part of investing, learning from past mistakes is also an integral part of investing. Don't underestimate the importance of investing only in what you know.

In domain name investment, adhering to some fundamental principles is necessary. The above five points apply not only to domains but to all investments. If you can manage your emotions in investment, you can also resist bias that affects decision-making. This is why being satisfied with your domains and your decisions is crucial.