High-Return Investing Example – Kickstarter “Oculus” Project!

Happy Monday Dinarians,

I hope you had a good weekend, also.  Well, friends, this post does not “bash” hack gurus – I know many of you will be disappointed, but before you move on, please read this interesting post I had found over the weekend.

If you back a Kickstarter project that sells for $2 billion, do you deserve to get rich?

CREDIT: The VERGE

CREDIT: The VERGE

Oculus’s backers could have had a 145x return on their donation. Here’s why that never would have happened

They pose a really good question and also provide a really good example of how it is possible to get HIGH RETURNS (i.e. $43,500 ) for only speculating and paying $300 bucks!  Does this happen every day?  NO, of course not, but does it show us that this kind of high return happens? YES!  Enjoy…

The Oculus Rift virtual reality headset raised $2.4 million on Kickstarter, no strings attached. Those donors weren’t looking for a payout; they wanted to support something they believed in, and maybe get a pair of virtual reality goggles to play with. But when Facebook bought Oculus a year and a half later for $2 billion in cash and stock, backers wondered: what if I’d asked for equity instead of a poster? “I would have rather bought a few shares of Oculus rather than my now-worthless $300 obsolete VR headset,” backer Carlos Schulte wrote.

If Schulte’s donation had been an investment, he could have earned around $43,500,estimates Greg Belote, the co-founder of equity crowdfunding platform Wefunder — a stunning 145x return.

Kickstarter doesn’t allow creators to offer equity, and the company has said it never will. But a bunch of other crowdfunding sites will soon be launching to fill that gap.

“I WOULD HAVE RATHER BOUGHT A FEW SHARES OF OCULUS RATHER THAN MY NOW-WORTHLESS $300 OBSOLETE VR HEADSET.”

Previously, investing for equity was restricted to an elite, wealthy group of so-called “accredited investors.” But under Title III of the Jumpstart Our Business Startups (JOBS) Act, companies will be allowed to issue stock to the public exchange for small investments, just like Kickstarter campaigns reward backers with T-shirts and other goodies. There are already scores of equity-based crowdfunding sites at the starting line — Wefunder, SeedInvest, and Crowdfunder are just a few — waiting for the Securities and Exchange Commission (SEC) to issue final rules later this… READ MORE

Hey, if you liked the part I posted, then please read the whole article on The Verge!

“Clearly this example relates to how I feel about the speculation of the Iraqi Dinar!” ~ Mr. IQD

When people ask me do I believe that it will “RV” or that it will become much more valuable?  

I always say yes, that I personally believe that it is possible for a large increase in value to happen, over a short or long period of time.  

As most of you know, I also like to be clear that I too agree that Iraq needs to see political stability first, which will lead us to economic stability, which I feel will in turn increase the value of their IQD.

Today’s example echos other examples I gave regarding Apple’s Stock (AAPL) if you remember those posts, if not, here are two article links: link#1 and link#2.

With today’s example of Oculus being bought recently by Facebook for over $2 BILLION, an investor of just $300 (if he had an equity stake) would have realized a return of 145 times, or $43,500!  It would have taken that person in this Oculus example 2 years of waiting…. – sound familiar?

~ Mr. IQD

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