Saturday, July 23, 2016

Pokemon Go: One of the best investments in history is about an application that produces nothing

You know that your society has reached the point of sheer affluence when one of the best performing investments in history comes from the creation of a virtual application that produces nothing of real value.

Today, more people could tell you what Kanye West's secret recording of a conversation with Taylor Swift was about than can name the new vice-presidential candidate under Donald Trump.  This is because the synergies that combined the fear of starvation with the ambition to succeed are no longer prevalent in our society, and time better spent on producing tangible goods and services has been replaced with the drive to simply be entertained.

Following the release of the newest global fad Pokemon Go, the Japanese company that had been wallowing in mediocrity for close to a decade suddenly skyrocketed to an all-time record market cap, and in the course of 10 days became one of the greatest investments in history.

All because of a virtual application that turns human beings into programmed zombies.

And when it comes to those who stand to profit from said Pokemon mania, nobody is a bigger winner than Nintendo which less than two years ago became a part-owner of Niantic creator Pokemon Go. 
We only have to look at the move in the stock price of Nintendo, which in just the past two weeks has more than doubled its market cap to over $42 billion, gaining some $22 billion in market cap. 
To calculate the return, let's generously assume that Nintendo was responsible for the entire $20mm initial investment (it was probably less). What a simple XIRR analysis reveals, is that the $22 billion boost in market cap relative to the $20 million initial investment is nothing short of a mindblowing 1,550,000% IRR, or a cash on cash return of 110,000% in less than one year. - Zerohedge

So in the near future when robots take over the jobs of an expected 15 million American workers, don't fret!  Because it will give them even more time to spend chasing around virtual pets on our nation's highways, over mountainous cliffs, and even along the edge of Hoover Dam.

2 comments:

And this is why we need a culling.

This is all because of the amazing graphics and the involvement that the game is creating among the user that make it the biggest hit of the era. There are also rumored pokemon go cheat that people are looking for now.

Post a Comment