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Assuming it was sold for what it was worth, the selling price could have been used as an endowment to purchase investments with a similar cashflow/risk profile
by scatters 6y ago
Assuming it was sold for what it was worth, the selling price could have been used as an endowment to purchase investments with a similar cashflow/risk profile but greater diversification so lesser risk overall. This is pretty basic economics: the value of an investment is the NPV of its future cashflows.
- tw04 6y agoWhat possible investment could ever match the risk:return of .org and where do I sign up? That is about the most risk free/cash positive investment in the history of mankind. Short of cornering the worldwide market on oxygen you aren't going to find a better investment.
- dathinab 6y agoThe .org contract ends in 2029! No guarantees that it will be renewed.
- trianglem 6y agoThat is still like having a golden goose for nearly a decade.
- felipelemos 6y agoFrom article: "One interesting fact about these contracts is that they are effectively perpetual: the contracts themselves are for quite long terms and registry agreements typically provide for automatic renewal except under cases of significant misbehavior by the registry. In other words, this is a more or less permanent claim on the revenues for a given TLD."
- jandrese 6y agoOr they could put that revenue stream into the same types of endowments.
- M2Ys4U 6y ago>Assuming it was sold for what it was worth That's a BIG assumption. More likely is that it was sold on the cheap because of a conflict of interest with who they're selling it to.