A financially independent millennial says it’s ‘an incredible time’ to be an investor and explains why he’s diversifying his portfolio by purchasing niche websites and watches
- Grant Sabatier grew his wealth by investing in low-cost index funds.
- He’s always looking to diversify his portfolio. Currently, he’s investing in niche websites.
- He’s also buying collectibles, including Rolex watches.
Grant Sabatier amassed a seven-figure net worth by investing his savings in low-cost index funds in the early 2010s.
He has expanded his fortune by investing in real estate and co-founding MMG Media Group, which builds, buys, scales, and sells websites.
Nonetheless, he wishes to diversify his investment holdings even further.
“I don’t want to be fully concentrated in index funds and owning websites and having a few real estate properties,” that’s what he told Insider. “I want to diversify into other asset classes as a way to further diversify my portfolio but also to just take advantage of places where I’m learning that the prices are pretty depressed.”
Sabatier sees a struggling asset class as an opportunity, and there are plenty of them right now.
“This is an incredible time to buy a lot of things given interest rates are so high, which significantly reduces competition if you have the cash or access to private lending,” he added. “Website valuations have dropped considerably, as have other assets like sports cards and watches.”
Investing in niche websites and watches
Sabatier follows one of Warren Buffett’s investing tenets: be fearful when others are greedy, and greedy when others are fearful.
“Everyone’s been so afraid,” Sabatier said recently, indicating that there are good value investment opportunities.
Digital assets such as blogs, content websites, and Amazon FBA product sites are examples of such opportunities.
“Tons of different types of online businesses are selling at extreme discounts, like 50% or more from just a year ago, because everyone’s worried about what’s going to happen with AI,” Sabatier said in a statement. “So it’s an incredible time to be buying niche websites and optimizing them.”
While the threat of artificial intelligence is “certainly worisome,” he believes it is “somewhat overblown” in the content space.
He particularly enjoys purchasing websites because they are asset-light and relatively inexpensive.
“You don’t have to spend hundreds of thousands of dollars on these.” “You can buy sites for $10,000 to $20,000,” said Sabatier, who searches for online businesses and sites to buy on websites such as Empire Flippers, QuietLight, and The Website Flip. And just because the sticker price is $10,000 doesn’t mean you have to pay it: “I recently bought a number of them, and all of them are seller-financed.” That essentially allows you to take a loan from the seller and get them for no money down.”
Sabatier, who built his own website, Millennial Money, and acquired a few others, recommends buying an existing site and growing it rather than launching your own and starting from scratch.
Sabatier is also optimistic about alternative assets.
“The collectibles market is still very, very hot, even though it’s cooled down from the pandemic highs,” he added. “When you look at sports cards, it peaked in February of 2021 and has been declining a bit but some of these blue chip-type, autographed sports cards are just continuing to soar in value.”
He also sees potential in nostalgic items such as VHS tapes, which comedian Pete Davidson is all in on, and video games.
Sabatier prefers to buy Rolex watches. The late American novelist Jack Kerouac’s Rolex is one of his most prized collectibles.
While collectibles such as watches, sneakers, wine, handbags, and sports cards are potentially wise investments — “I think you’re going to see continued growth in analog assets,” Sabatier predicted — they shouldn’t account for a large portion of your portfolio. Consider them a fun way to add some variety to your life.
