Quote from: ranlo on June 15, 2013, 03:49:16 AM

Quote from: twentyseventy on June 15, 2013, 02:22:36 AM

Quote from: ranlo on June 15, 2013, 01:13:03 AM

Well, the issue is that with the quickly rising hash-rates, it's going to become less and less valuable. While it may be 10% this month, next month it could be 3%, then 0.1%, etc.

I'm mostly trying to figure out if I should jump in on this now or just keep the BTC (based on number crunching I don't see the dividends paying off based on the current stock prices). I could be wrong, of course.

I feel that this is the biggest issue that people don't realize about VM. The dividend will get smaller, but the price of the bond will also fluctuate based on the expected dividend!

So many people here are calculating ROI as if the price could never drop below the IPO price...

You lost me here. You're saying that as the dividends drop, the price probably will as well. That makes it an even worse investment, wouldn't it? Being that you can't even sell it for what you bought it for?

This is the why you not only have to research into your investments, but also keep an eye on them.
The price/share can (and I think will) still go up since, as everyone has pointed out, it is currently outperforming most other dividend style investments. I am not the creator of this, TAT is, but if I was going to start this fund I would have placed the IPO price at below what I thought it was actually worth(which I think he did.) This just makes it even more likely that the market would take notice and sweep them up quickly.
If you are worried about the price going down, just make sure you keep an eye on the prices so it doesn't go under what you consider to be your limit for the dividends you will be receiving.
I'm not going to look up current prices÷nds and do the math, because I am tired Wink

but if you have received enough through dividends to make up for the price drop and you are still making decent profit then it is a good investment.
Don't forget that by keeping an eye on it, you can sell a couple of shares when the price is up and buy when they are a little lower to increase your overall holdings.
In my opinion, a lot of people using the term ROI are used to using the math for calculating hardware profitability. While there are a lot of similarities in the math, some things have to be looked at a little different.

So to my original statement (tl;dr) Do research & watch what your money is doing. Math is fun when it's profit =)

*Edit before anyone gets mad- I am not saying any specific post or person here is calculating ROI wrong, this is just the feeling I have gotten in multiple places around the forum on multiple subjects. My point is to be careful and make sure your math is logical and includes all the factors you can think to include (and try to include room for error.)