Posts tagged: vaporware

Online, offline, value-investing still requires a wide moat.

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By , July 5, 2010

A lot of people want to “invest” in websites and domain names. As value investors we have the same requirements for an online investment as we do for an offline one or a publicly traded equity:

  • We can buy it for less than it’s intrinsic worth
  • Safety of principal combined with reasonable return
  • A durable competitive advantage or a wide-moat

Between these three simple criteria, we can eliminate probably 99% of the “opportunities” we see out there to “invest” in a web business or a domain name….

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