Did Your Domains Investment Return 60% Since September? It Easily Could Have

Dec 21 2010

Actually my domains didn’t but my Marchex investment did.  I admit it, I was pretty pissed at Marchex earlier in the year.   I wrote an article about them not being a domain industry measuring stick and felt they were heading the wrong direction.  Then “Bill” a reader told me I need to do my homework before I wrote the article and that I was all talk and no action.  He turned out to be right.

So I did a little homework and continued to follow Marchex.  I pulled the trigger in August but didn’t post about it because I hate to give stock picks because I’m always afraid someone will follow my lead and they might lose money.  I learned this from my last blog, a blog about investing.  It turned out I put money in Marchex, not because I thought they were doing anything exceptional but because they represent domain investing, an industry that I think is in growth mode again. I also think they are an obline advertising company, another industry which is seeing huge increased growth.  Add in their deals with AT&T  and their pay per call programs, and I think they are headed in the right direction.  I didn’t put in very much money but it has done as well as any stock in my portfolio.

Motley Fool had nice things to say about Marchex today as well (I admit it reads like it was written in 1995)

When this whole Internet thing started, not many people realized what it would mean to have a popular domain name that could drive eyeballs — let alone dollars — to your site. But “not many” doesn’t mean “no one,” and a few smart people bought up seemingly generic domain names: business.com, news.com, even sex.com.

Today, owning domain names is big business, since they can go for thousands and sometimes millions of dollars. For example, Amazon.com (Nasdaq: AMZN) paid a princely sum to the owners of Quidsi, which had the wherewithal to own both Diapers.com and Soap.com.

So if Marchex is already in your portfolio, you just might want to hang onto it, as it owns thousands upon thousands of domain names. Following the going-private deal for Internet Brands, Marchex might be able to drum up a following too.

The CAPS community is certainly leading the way, with 87% of those rating the domain hog to outperform the broad market averages.

If you think it’s too late to get in I think you’re wrong.  I think there is still room to grow. There may be a pullback in price soon (all stocks pull back at some point) but I still see this stock higher at the end of 2011.

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Outsmarting the Dumb, Outworking the Smart

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  1. Meatball

    so much for not giving stock advice

    If you think it’s too late to get in I think you’re wrong. I think there is still room to grow. There may be a pullback in price soon (all stocks pull back at some point) but I still see this stock higher at the end of 2011.

    1. Post author

      Ooops. There I go again. Disclaimer: The advice given is merely speculation and should be followed at your own risk” thanks meatball for pointing it out…..and nice name. I imagine your brother’s name is spaghetti.

  2. Oscar

    Articles like these is what makes a great blog, Shane. It’s rare that bloggers admit they were wrong, little lone do a posting about it!

  3. Michael Hudak

    I invest in domains and sometimes stocks, when they are “gamechangers”. I work two blocks from Wall St., so its almost a sin if I dont play the game a little. If any domainers want to jump on a game changer, here you go:

    Dont say I didnt tell anyone. Shane, revisit this post 2-6 months from now and give me a mention when ACTC is $1-$10. Im in at .13 LOL

    ; ) Im down a bit as for my first year in domaining, but this was a building year. This was my first year, the year that I started building a portfolio and made mistakes(at least $2000 in hand regs, $500 of which I actually like and definitely have value) and won some (golf-driver.com, bought for $500, sold for $3000+), but Im still here, ready to learn and ready to fight the good fight.

    Onto 2011!!! Happy holidays all.

  4. Mike

    @Michael Hudak – ACTC’s balance sheet and cash flow statement are HORRENDOUS. Sorry, I’ll keep my money where it is.

  5. Michael Hudak

    Mike, I know thats what all my investor colleagues are looking at, and they are saying the SAME THING, buttt…. Im up 100% already AND I have a good feeling about this one. They are going to have the only treatment for dry AMD, they may cure blindness, and I just like the feel of the company.

    All I ask is that we revisit this comment 2-6 months down the road and drop it from here on out. Im aware of the balance sheet Mike, the numbers are an abortion. But trust me on this one ; )

    I wish everyone luck in 2011 on their domains and investments. I know I am going to focus hard on learning to develop small time and learn some really good SEO strategies to move my sites along.

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