Taking The Long-Term View

Hello and welcome to this SPinvest post
SPinvest is a tokenized investment fund/club for all users of social blockchains. Everyone is welcome! The concept of SPinvest is to get rich slowly by using time tested methods of earning, saving and compounding long term. This lets SPinvest offer an ROI of 20% per year on SPI tokens. We encourage long term investing on and off the blockchain. We hope someday everyone will HODL some SPI tokens that can be bought directly from @spinvest are through the hive-engine .

SPInvest is a club that was designed to take the long-term view towards investing and wealth creation. Since its inception, the idea of was grow at a consistent 20% rate annually. The concept is sound knowing that, over time, the payoff would be great for all involved.

During the time it is in operation, the club has done exceptionally well. The 20% return was smashed. During the first year, the increase in assets held by the club increased by an amazing 80%. This certainly put the club in a fantastic position to realize a nice gain over its first decade in operation.

Year 2 is shaping up to be even better. According to yesterday's post, the first few months has netted the club a return of over 60%. This puts it on pace to smash the numbers from the first year.

Of course, if we look at this from a compounding perspective, we see how the results, in raw numbers are even better. What started out as a token being priced at 1 HIVE, saw the year 1 end at 1.40. We now have a SPI token value (not price) that is over 2.20.

Results like this can be very exciting. They exceed the expectations of the club, something that everyone involved will take. However, that said, the vital thing to remember is the fact this is still a long-term situation. Thus, maintaining that view is crucial.

The big moved experience by SPInvest thus far sets it up for much bigger payouts later on. As stated, the powering of compounding is to our advantage. Getting outsided gains early comes back in droves later.

Using the base of 20%, the token value, on paper, should have looked something like this.

Year 1 1.20
Year 2 1.44 Year 3 1.73 Year 4 2.08 Year 5 2.49

Notice how SPInvest already has a token value higher than was anticipated in Year 4.

Again,returning to the 20% figure, we will see how it looks over the next 5 years from the point we are at. We will use the 2.20 as the year end price even though we are only a few months in.

Year 1: 2.64 Year 2: 3.17 Year 3: 3.80 Year 4: 4.56 Year 5: 5.47

Notice how big the difference in the value of the token is with the two projections. Both use the same rate of growth (20%) but obviously have different starting points.

Warren Buffett is thought to be one of the greatest investors of all time. He is an example of the power of compounding. The fact that he was able to consistently generate a 20% return, over more than half a century, shows how things can add up.

Let us go out a bit further in our projections. We will still use the 20% growth and start from year 6.

Year 6: 6.56 Year 7: 7.88 Year 8: 9.45 Year 9: 11.35 Year 10: 13.62

The difference gets even greater. Naturally, I took some liberties with the numbers by making presumptions. However, it does illustrate the potential that exists. Remember, all these prices are in HIVE.

Let us look at things from a USD perspective for a moment. Let us presume that, in a decade, HIVE is worth $1. This is not an outrageous claim over a decade. That is a little more than a 5X from here. By that time, BTC might be a few hundred thousand, so HIVE will be very reasonable.

This means that each SPI will be worth $13.62, something that costs around 42 cents today. That is a healthy return over a decade.

Of course, one of the biggest liberties taken is the 20% return idea. The fact that SPInvest can earn both passively from its investments and actively from the effort put forth by community members means that a higher growth rate can be achieved. We saw this in the first year and a half of the club.

Anyone can play around with the return. Imagine what would happen if the next 5 years saw a 30% return as compared to 20%. This would be half of what the club attained in the first 4 months of year 2.

That would place a 5 year value at 8.16 HIVE per SPI token.

Not a bad return especially when you factor in that SPInvest is paying out around 8%-9% annually in a dividend that is paid weekly in HIVE.

Sometimes there are opportunities that are no-brainers.

. SPinvest's content is contributed by @silverstackeruk, @underground, @no-advice, @metzli & @taskmaster4450

Today's post comes to you from @taskmaster4450