Categorized | Domaining Tips

How’s Your Dry Powder Stash?

Posted on 08 January 2019 by Andrei

As an investor (in domains or whatever else), it’s important to be prepared for financial calamities… but there’s more to this equation than just playing defense!

Some of the best acquisition opportunities tend to present themselves when the other party is fearful and when it comes to financial calamities, you have that scenario multiplied by at least several million.

Stock holders who had been previously optimistic to the point of perma-bullishness can and will (panic) sell under the right circumstances.

As will real estate investors.

Or crypto investors… with, of course, domain investors NOT representing an exception.

… the only question is this: will do be ready?

To answer this, you need to figure out:

  1. If you have enough dry powder (CASH) at hand
  2. If you can afford to HOLD whatever it is you’re interested in buying

For example, after something like a global financial crash, you might buy a portfolio of LLL.coms at an average price of $5,500 each. Juicy!

But even if you make great acquisitions, the market will most likely not reward you right away, especially in an environment of financial despair.

On the contrary, markets tend to “want” to push things in the direction of maximum pain for both buyers and sellers.

In other words, you might be feeling great about your LLL acquisitions but what if two months later, someone panic sells a portfolio at $4,500? What if you all of a sudden need access to quick capital, would you be forced to liquidate domains in an environment of depressingly low demand? What if, what if?

That right there is how the market operates, as any experienced trader can confirm.

The answers to all of these concerns is simple:


Money. Moolah. Muchos dineros.

To put it differently, now is the time to become lean and mean.

Wanted to buy a car to impress your family members and friends? Don’t.

Wanted to get an awesome home cinema? Don’t.

Wanted to live your life? How’s about a rain check on that?

… you surely get the point.

Avoid useless expenses, put that money away and do your best to increase your dry powder stash. Honestly, the best time to start doing this would have been several months ago. But that ship has sailed and the only thing you can focus on is the present.

In my opinion, a time of mouth-watering opportunity will come for those who are prepared.

LLLLs at $5,000ish? Maybe.

A temporary bitcoin dip into the high three figures or low $1,xxx zone? Perhaps.

Stocks at fire sale prices? Why not?

However, there’s something else you need to know about the market: it doesn’t exactly like to be generous when it comes to allowing people like you to take advantage of bargains. Therefore, don’t expect windows of opportunity like the previously-mentioned ones to last.

I genuinely hope you’ll be able to put this advice to good use, buckle up and when everyone else is fearful, be ready to take action and live the contrarian dream 🙂

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