LBI: Presenting Opportunities

LBI is one of those projects that flies under the radar. Each week, the numbers keep looking better yet most overlook it. This is simply how some of these projects on Hive are. @spinvest gets the same treatment.

Nevertheless, the opportunity is there and some take advantage of it. Considering that LBI churns out weekly dividends along with the value of the token being back by assets that are held. Thus, in each LBI weekly report, we see the "Book Value" of the fund.

According to that report, here is where things stood on Saturday.

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As we can see, the value of LBI token is worth 1.43 LEO. That means, if all assets were sold, there would be 1.43 LEO for each LBI held. At the present price of about 30 cents per LEO, that works out to a price of almost 43 cents for each LBI.

This is why this comment is really telling.

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The price of LBI was actually below that of LEO. This means that not even considering the dividends, we are looking at a discount of more then 40% on the price of LBI compared to the value of the assets backing it.

Obviously, @jfang003 was able to take advantage of an opportunity the market presented. Why was it there?

That is what happens when there is not a lot of attention paid to a project. Many funds like LBI are overlooked on Hive. Nevertheless, for those who are involved, they are money makers. The value of the assets held keeps growing. We are closing in on 50K LEO paid to the fund in rewards from posting and curating.

Markets have a mind of their own. Inefficiencies exist and can be beneficial for people who are alert. Here was a prime example of a token being offered at a severe discount. When something is generating weekly payouts along with growing in value each month, having a near 50% discount is a bargain.

This is why it is always smart to have some extra "powder in the keg". For those who have the long-term outlook of LBI, it is easy to see how token acquisition in this manner could really be of benefit down the road. We could see LBI worth 3 or 4 LEO each with the pace we are on. Couple this with a run up in the value of LEO against, say, the USD, and we are now in the area of having a massive multiple on our investment.

One of the keys to building long-term wealth is to take advantage of the opportunities when they are presented. Warren Buffett calls this "buying when assets are on sale".

Everyone is out looking for the 100X projects. We can see how something like LBI, even overlooked like it is, has that potential. While the number of token holders is small, we could see all of them ending up with a significant payout in the long run.

This is what the project is all about. We are looking to increase the value a great deal over time to create massive returns for every token holder.

Sometimes, as we see above, the market hands some people a gift.

When opportunities are presented, it is best to jump on them.

Article by @taskmaster4450le

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