I see no issue with Facebook’s revenue model, just the valuation it’s held at. If Facebook’s P/E were around 30-40 I would seriously consider it, but not 100. There are much better companies to invest in at cheaper valuations with long profit histories.

Again this isn’t stating mint.com isn’t secure. I also use mint, though I would rather deal with knowns with my setup. With any cloud based solution it’s a black box to the end user. So you have no idea how much security (or not) is going into that service.

Keep in mind the many recent break-ins to Fortune 500 companies services. These companies also spent a lot of money on security. The RSA getting hacked is a good example.

Hence why I had Miranda research the article. I’d be curious any insight you can add to this process?

The $250,000 in tax free profits is also a wonderful addition.

Future growth should be built into the price, right? So it would have to do even better than the price suggests (and who knows what the price will be by the end of the IPO day?).

Another question is do we really understand where their revenue is coming from? Can we trust that for the future? It’s interesting you mentioned MySpace since they have actually been growing again in the last few months. Add to that sites like Google+ and Pinterest and who’s to say what the future holds for Facebook?

I’d much rather deal with a stock like Apple or Amazon where they have shown profit and growth for years. FB could prove the naysayers wrong but I’d rather not stomach all the ‘ifs’ with them right now.

Great question. The logic is as follows. A 5 year note approximately yields 2% higher than a 3 year note. The issue is does that additional 2% per year worth the additional risk of:
- default by the borrower through the life of that loan
- interest rate increases (outside of LC)
- money tied up for that term

I would rather invest in shorter 3 year notes, and take the money freed up during the life of that note to buy other notes for also 3 year terms. You are getting your principal faster with a three year note.

Keep in mind any Lending Club loan is unsecured debt. So the everything is based upon faith the borrower will pay it back in full. IMHO that is too longe of a term for unsecured debt, and I would only be willing to do this with much higher than 2% per annum.

Time will tell if my theory is correct.

I make a full time living on the internet now with various projects. I used to focus too much on saving money, but I am now trying to shift my mindset, which takes time. There is nothing wrong with living within your means, but I think you have to enjoy your money (which often represents success), in order to motivate yourself.

You also often have to be prepared to spend or risk money in order to make more. With a scarcity mindset I feel you are less likely to do this, and so will likely miss many opportunities. It’s all about balance I suppose. You can’t be too gung ho, but you do have to go for it and take a chance or two if you want financial abundance.

I have found that the old Napoleon Hill books have helped me with this, especially “Think And Grow Rich”. I think this is essential reading if you want to be a high earner.

It’s about expanding your income, not living a minimalist life.