Investing in Digital Real Estate with Mohit Tater

The 7investing Podcast

You could think of the internet as a gigantic digital Monopoly board. Those who invest in and develop the right properties can reap incredible real estate gains over time.

But how should a potential investor even begin his or her search? Just as physical homes are priced based upon the neighborhood and the beauty of the kitchen counters, are there similar things to look for in a digital property? And is advertising still the primary money-maker rfor internet sites -- or has it transitioned to other income streams such as subscriptions or affiliate marketing?

To help us answer those questions, we've brought in an expert. Mohit Tater is a lifelong investor in digital real estate. His private equity firm BlackBook Investments invests in undervalued websites and improves their ROI over time. His company has delivered a 27% ROI annually (after fees) for its investors for the past ten years.

Simon kicks of the interview by asking Mohit how the internet has changed the most during the past decade. Mohit says there are significantly more creators today and that video has become the predominant form of content. This opens up new forms of advertising, which command much higher rates and pricing than simple programmatic display or audio ads. Even though it's made headlines in recent years, it's likely the third-party cookie will continue to be used for tracking we behavior for quite some time.

Mohit then describes what BlackBook looks for when making an investment. They target stable growth in revenues and traffic, with "low hanging fruit" that is available for them to improve upon.

In the final segment, Mohit describes how GPT will augment -- not displace -- Google's advertising business and how the internet is different in India than it is in America.

Publicly-traded companies mentioned in this podcast include Alphabet, Meta Platforms, and Twitter. 7investing's advisors and/or its guests may have positions in the companies that are mentioned.

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