Investing in Software

Another idea I came across in my constant research on creating residual income is to buy software or apps that people have made and are still generating income.  There are a couple of sites that have been set up as a clearinghouse for people who have created apps and are selling them to investors.

Some of these apps are being sold for as low as $500.  Many of them range, however, from $1,000 on up to $50,000.

The key to making a good investment in this type of product is to make sure that the software or app is still being used.  You can check this by analyzing the data on Google analytics and through the website that is selling the app. 

By KROMKRATHOG, published on 27 April 2013
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However, even if the app is not making any money at the moment the question is has it made money in the past and what would it take to get the app to make money in the future.  Just like Warren Buffet's approach to investing in companies you can buy a company with a strong idea and balance sheet but is not performing based on temporal conditions. 

Sites to buy apps:

http://www.apptopia.com/

http://www.sellmyapplication.com/

Market Update 7-16-12

There is a lot of uncertainty in the markets for tomorrow’s session.  Earnings are still coming out and Bernanke’s going to speak this week.  The market had a strong rally on Friday so look for a pullback tomorrow but truth be told, the market could go in any direction this week.  I’m going to stay out for the first hour to let things develop.  When the market is reacting off news its best to stick to fundamentals, play the pullbacks on a percentage basis and time your entries off Bollinger Bands, moving averages and stochastics, but make sure you are out of your position before any news announcements.

I’m still looking at Walmart but I’m a bit cautious now that it’s pushing up to the analyst target of $79.  The value of the company may be priced in at this point in the current market conditions.  On the other hand Warren Buffet increased his position in Walmart so he may know more than everyone else.