Where would you invest $1000L?

I have decided to give myself $1000L to invest. I am not able to be in world on a regular basis to get a job to feed my shopping addictions, so I have decided to become an investor. Besides real estate and currency trading, what other areas would be good choices?

This may sound nuts, but here is what I would do.

$L 1000 (approximately 3.75 USD) can only be leveraged significantly in one way.

Give it to a talented, but broke noob.



This will get the person some texture uploads, a tiny spot in a mall somewhere and a classified ad. Rely on their kindness after the fact. Yup, straight up, 100% trust with a capital T, no collateral.

Ask if they will return 5k or 10k if they are 'up and going in business' in three months. If they can't afford that in 90 days, call it 180 days. Whatever they can do. I wouldn't be surprised if you get back even more than that.



Remember, even the wildest ponzi schemes will only net you maybe $L 1500 annualised over a year. Flushing $L 1k down a slot machine.... heh. Make an investment in someone promising but broke.

Noobs. Not just for breakfast any more.

I am not going to reply to this post Desmond so there is no point getting your hopes up !

(sorry Brenda private joke)

Regards

John

The Mad Science Bunny Fund is always willing to accept donations. ;3

From strange and uselessly huge Plot Devices(tm) to mighty morphing power parts for your avatar, there is always a need to expand the lab for more ... erm, work area. So there is always room for more moolah in the coffers. *giggle*


Seriously, I am with Desmond on this one. It's how I got started. A kindly stranger just whallopped me with a 1K $L beginning bankroll and the rest is history. Paid him back with interest too once I got my paws-a-busy making things for other folks that simply cannot wrap their heads around builds and such. Give a good, promising newb a break with that knot of cabbage. It will work out well for you both.

Desmond, you are far from nuts!. Being of an artistic background in RL, Patronage is something I can relate to. I was thinking of looking for a Silent partnership in some sort of shop or retail business, but your idea is even better. I am going to look into that further. Great suggestion.

Well, 1000L doesn't even buy a good skin these days, or even 512 m of land. Get together 20,000-30,000 L and maybe you can talk investment.

Well, there are banks that do return interest I believe. I think I looked at Ginko? I think it was, and they return 1L interest a day, for every L1000? or maybe it was 1L a month interest per 1000 or per week. I don't remember but, I believe there are investment outlets like that, other banks as well. Of course, they aren't 100% guaranteed but, I'm sure many of them are reputable.

I've been here since 2004 but, I only just started doing business making and selling stuff.

With no starting capital save for like 300L I've had in my account since forever I've made about 2000L in a month selling things on the SLX and SLB and I've made about 18000L in world creating custom buildings also in the same month. (period of mid-dec to mid-jan)

Mind you, that I do have extensive prior building experience and didn't just start trying to make stuff not knowing anything. It's just that I only recently decided to try and make some money with my stuff. But, again I started with basically nothing but, 300L.

I also did all that with practically no advertising. Actually, the only advertising I have is my SLProfile and my actual personal presence in world, and posting on SecondLife and SLProfile forums.

Well, I would take the 1000L and go have a little fun with it. 1k isn't really enough money to invest, but it could buy you a couple of nice outfits. There is no way to make easy or quick money in Second Life. If you don't have a lot of time to spend here, my advice is to make your investments in real life, and shuffle a few bucks into SL from time to time to have fun.

Grins - I remember on Motley Fool once there was a question of how to invest, oh, 10, 100, 1000, 10000 and 10000 USD, and their best answers for each. Some approximate values like that; I don't recall as this was over a decade ago.

I *do* recall the ten dollar advice though. "Buy a lottery ticket" - because if ten dollars was all you could invest, you were basically really stuck with little hope anyway, and the lottery ticket basically was the only way to leverage such a small amount... hilarious!

That said, John is a financial advisor, and he's in the business of making money so I'd guess he'd be a good person to ask if it was a more sizeable amount.

Talking about $L 1000 is far more fun, though...

I'd suggest trying the World Stock Exchange. Owning stocks are risky but with dividends and everything else it can be a good long term investment.

There are currently two banks that I know of: Ginko (0.1% per day, or 1 linden per 1000 per day) and SL Bank (around 0.07%). Doesn't sound like much, but unless I'm mistaken 0.1% translates to 36.5% annual, compounded daily (that's 10 times the usual bank rate, plus the compounding).

So, recognizing that this could be risky (after all LL could crater your investment with the push of a button) it could actually make sense to invest more actual money in SL.

Now, reasons to treat this like slot machine money:
1. As stated above, LL could change the economy, deliberately or accidentally, in a heartbeat.

2. SL loses stuff. Objects and cash disappear all the time. Lousy for residents, even worse for businesses, and horrible for investors.

3. The "banks" themselves have no oversight or regulation whatsoever.

So far, though, I haven't heard much complaint about these "banks", making me think that money there is a lot safer than, say, a technology mutual fund. In fact, if you were thinking of starting a business, you might consider plowing an extra $100 or so into the bank to let interest help pay your monthly expenses. Now if only that money were accessible to the community to fund development; not just the usual business loans, but to hire skilled debuggers, for instance.

This is intended only as food for thought. If you feel like flaming me for posting this, your thoughts were probably pretty hungry anyway. I welcome factual corrections.

Fantastic idea, Desmond

I started with L$0 and now I have a decent profitable bussiness of my own. L$1000 could have been a huge help to develop it much faster and therefore, I think Desmond idea is excellent!
And more yet, it inspire me to do the same. I will try to support some talented undiscovered noob in the grid.
Again, Great Idea!

I like this idea as well... but how does one go about finding a talented undiscovered noob?

-Atashi

Maybe go to a sandbox and look at what people are building and check their profiles? Or go to the various building classes and building challenges that are held and see if you can spot some talent. Then again you might just have an old-timer hiding out with their alt.

Great advice all. I am not looking to get rich of this 1K stake, at least not right away. In addition to the weekly stipend, I have an allowance I earmark for Lindens, so I'm not wandering about, broke and homeless. It's just something I want to do do enhance the game now that I've been on for a couple of weeks. As for finding worthy recipients, in trolling the Malls I've already come across several people whose work I like who are relatively new . So I shall see. I like the bank as well, even if it goes bust I'm only out $4 real money.

Glad everyone likes the idea, but it really wasn't my own.


When I first started I had a little bit of land, but not enough to set up a proper shop.

Along comes Garnet Psaltery, who had some land and offered to let me use it to get started. Were it not for that... wow. It would have taken me another year, I'd guess... in which case I might be planning to open my first sim right about now, instead of how it happened.

I won't discuss our little agreement, but needless to say she did quite alright, and I'm very happy she did. The street that encircles the park in Caledon's capital, Victoria City, is named "Garnet" and now you know why.

There is an idea here that is starting to emerge Desmond and others. There is nothing new in this as it has a perfect mirror in every day life.

Supposing a group of avatars got together, who are prepared to stake say $50/$100 US real dollars into a Second Life venture finance fund. Appoint one or two people within the group who have both first and second life knowledge to make investment decisions, convert all the real dollars into Lindens and stake promising avatars money for business ideas in return for a stake in the return.

Quite common in real life, the percentages usually work out 70/30 to the business angels/new business. A collective venture or "Second Life Real Asset Collective Investment Vehicle". In theory it could produce a return, I might be willing if other well-known avatars are also, just an idea

Clearly, we're getting away from the initial slant of investing for personal gain, and starting to look at the Greater Good of SL civilization. I like that better, actually; I can handle my own money, but if I can do something that might help improve SL as a whole, that's what should be done.

What if we had a bit of capital set aside to fund scholarships to the SL institutions? Worthy, promising newbies get their SL educations paid for. The students compete somehow to earn the prizes & prestige, which might produce some nice developments right there. They would also be brought to the attention of the RL companies in-world, such as IBM, who might then hire these proven winners. Not only might we get some really nice innovations, or problems solved, we might just be starting someone's career. Someone who could take our avatars to the next level, or help make SL reliable, or modify the IM client so we don't have to see all those "Joe Blow just left this session" messages. Or invent the next virtual world entirely.

How would we set this up and pick the winners? Perhaps we should start looking at how RL institutions do it. Perhaps if we ask them, get them involved in the process, being careful not to let them bog us down or take over and make it a bureaucratic mess.

Secondary thought - student loans? The fund could pay for classes attended (never just give the student money) and expect repayment, with some interest. Sure there would be some defaults, but the potential gains...! Enough capital could draw interest sufficient to fund a limited number of applicants without depleting the fund itself, with the written agreement that if the fund were dissolved, the funds would be returned to the initial donor or the institution of his choice.

Businesses might jump at the chance to be included in this idea, just for publicity sake. And they might contribute non-cash too - there's at least one store (I'm thinking of Shnook's Guides) that publishes how-to books that might be a good part of the education. Or, builder's tools like Skidz might be donated. What else?

If income from SL business is taxable, wouldn't these things be legitimate deductions?

Just brainstorming here...

What a cool idea, I've kind of done some of this already, making land (well prims really) available to friends and even people I don't know.

Personally I'm not overly concerned if I give someone $L and never see it again (it would be nice though), I have been giving newbies I met and like cash to help them out for a while now.

I've got plenty of space and prims available, and some $L so I might just have to formalize it.

Sorry to keep this thread off topic, perhaps we should start a new thread for it.

How about... drugs?

Best one on the market is Seclimine that is sold on the streets for 60 L$ (for the best high). You can buy 10 for less than that per unit.

Go hang out in places like the Crack Den or clubs playing rave music and you'll have plenty of punters to sell to.

Don't come looking for me, though. I've been clean more that an month.

On behalf of the Duchy of Primverness, a small sim located in the far eastern reaches of the Independent State of Caledon, I would like to take this opportunity to announce the formation of the Whitehorn Memorial Avatar Aid Society. The Society has as its primary goal providing, to worthy and diligent individuals whose aspirations outstrip their present means, a financial and advisory Leg Up. This will be accomplished by disbursement of funds to deserving avatars who are genuine and sincere in their desire to better themselves and in so doing, thereby to improve the conditions of those around them.

Beginning in early March of the present year (that being 2007 C.E.), the Society will commence the periodic distribution of funds in amounts of no less than L$1,000.00 (One thousand Linden dollars) by direct transfer to such persons presenting themselves as candidates for aid by means of the submission of an application as described later in this announcement. These funds will be presented outright with no expectation of repayment to The Society. The receiver of the monies will bear only the slightest obligation, viz and to wit to allow their image to be placed on the Wall of Honour in the Primverness Workhouse, which is currently under construction. Special Consideration will be given to proposals whose purpose helps to better the lot of groups the members of which find themselves on the margins of Society through no inherent fault of their own. We take as an example those persons who find their dearest solace in the company of their own gender (if any) , or those whose integumentary hue has resulted in the loss of opportunities otherwise generally available.

Additionally, should it be deemed useful to a recipient, low-lag construction workspace in very low lag sim will be provided gratis for the term of the period during which said avatar is establishing her/him/it/zir-self, thus allowing The Work to be Carried Forward.

The particular conditions that must be met to qualify for an award are, viz and to wit, as follows:

1. The applicant must be essentially indigent, In Second Life, as determined by an examination by the Board of Governors, and entirely without holdings or stake in land or properties
   
2. A permanent email address must be provided
   
3. Funds received must be used to establish an avatar in a useful and socially beneficial profession. At the discretion of the Society, certain professions may, it is very likely, be excluded, unless a special case can be made by the applicant. As an example, we would be loath to fund the establishment of a House of Pleasure, unless the case could be made to justify it.
   

To be considered for an award, a person desiring Funds from The Society must submit to the Recording Secretary of the Society a proposal in writing, the which adheres to the following guidelines:

1. It must be delivered in writing, in English. Spelling and grammar mistakes will NOT, in the main, count against the success of a petition.
   
2. The proposal must describe the particulars of how the funds will be used. The Society desires to know "the What, the How, and the Why" of the proposed project
   
3. The proposal must be confined in its length to fewer than fifty (50) words. Proposals exceeding this length will be discarded without having been read.
   

Although not required, personal recommendations from individuals of note and of good reputation, will enhance the status of a proposal.

Additional information shall be posted to this thread, and on a message board to be erected at the railroad freight stop in the sim of Caledon Primverness.

The Society's Recording Secretary is Increase Carthage ( [email=increase.carthage@gmail.com]increase.carthage@gmail.com[/email]), to whom all correspondence should be addressed. Given the likelihood of IM caps, in-world messages are strongly discouraged in favour of e-mail missives.

Although its headquarters are located in the beautiful and industrious Independent State of Caledon, the Society wishes to emphasize that it has no connection with the owners and managers of that fair state. The Society, its mission, and its environs are supported by CoyoteAngel Dimsum of Lovelace.


In service to the grid,
Increase Carthage
Recording Secretary

Sounds very cool!

I'm sure some of the graduates will become well established residents of the grid. I know CoyoteAngel fairly well, and if you are looking for your chance for a small sponsorship, this is it.

Well, I'm impressed and pleased. Welcome and Hooray to the WMAAS. It's good to see someone turning talk into action, and I wish you (collectively) much success. Will you announce this to the SL media?

I read this announcement as a source of grants. I'm still interested in how this will apply to education and intellectual development.

Previously I had wondered about investing in a bank and distributing the interest, as CoyoteAngel has apparently done. It just occurred to me that the guy who runs the bank is always the fat cat in town; he makes a huge profit on other people's money. If an organization wanted to really maximize the fundage, would it be most efficient to do the investing themselves, the way a Credit Union makes themselves a bank? I have no idea how much time and effort is put into the money management and investing at Ginko and SL Bank, so I don't know what this would entail, just brainstorming... hopefully something else as wonderful as WMAAS emerges from the storm.

In accordance with our stated purposes (above) the AAS is pleased to announce that two grants totalling L$7000 were made in the month of March, 2007. We invite applications to submit proposals for consideration.

In svc to the grid,

Increase Carthage
Recording Sec'ty, AAS

Postscript: For record, I would like to note that "Increase Carthage" is a secondary avatar for CoyoteAngel Dimsum. Correspondence specific to the AAS should be directed to Increase Carthage via [email]increase.carthage@gmail.com[/email]