As we all know, “legendary domainers” or in other words the domain investors everyone knows about own some amazing gems, no question about that. However, I’ve noticed an interesting paradox when it comes to their portfolios. Yes, they own some truly amazing gems but on the other hand, they have considerably more low to very low quality inventory than I thought.
For example, everyone knows a thing or two about Yun Ye’s portfolio and about the sale to Marchex. Quite a few of his domains would without a doubt make even the pickiest investors drool but even in that portfolio, there were lots and lots of awful domains. For example lots and lots of long numerics which are basically worthless. Don’t get me wrong, NNN and NNNN dot coms have done remarkably well lately but *long* numerics have been, are and always will be worthless. This is just an example but the bottom line is this and I encourage you to do some research yourself: even the best domainers have considerably more low quality inventory than you’d expect.
There are of course explanations. One of them would be that since they’ve done so well and are in such good financial shape, they’ve been tempted to go on “quantity over quality” buying sprees every now and then. All in all, they’re in great shape but in my opinion, talking about “the portfolio of legendary domainer x” as if it should be treated as a whole would be a mistake. Instead, it’s better to acknowledge the fact that the portfolio in question actually consists of multiple portfolios with varying characteristics and treat it as such.
Again, I encourage you do to some research and I’m sure you’ll agree with me that pretty much all popular domain investors have not a couple but quite a few “head scratchers” in their portfolios. Blindly copying their strategy in a “legendary domainer x owns abcdefghijk.com, so it must be a good domain” manner would be a huge mistake. Legendary domainers can afford to loosen their domain choice criteria every now and then, most people however cannot