Several folks have asked me about my current investment strategy; so I thought I would write it down. This is not a promise about how I will do it forever. It is not a recommendation about how other folks should invest. It really is just what I am doing now.
I continue to buy new players. I buy a handful of Fresh Faces each day; generally from lists provided by Gerrit Bes and Paul Steinbrueck. Generally I work from the lists as a time saver. I will sometimes take a look a Dennis Dittrich’s suggestions also.
The vast majority of my purchases are through insideEAV. I am familiar with the other tools, but this one fits the way I think. For folks with a less technical background, I generally suggest Avenue.io. With a reasonable sized portfolio, a portfolio management tool is important; otherwise, the pain inflicted by your portfolio is too high. I have heard the complaints about tools making the game impersonal. I disagree. The tools free me from the routine purchase tasks, and allow me to have time to actually engage. I am aware of the folks who misuse the tools and act like jerks. Upon careful observation, I am confident that the tool is not the problem.
In the morning as my portfolio is loading, I check the Fresh Face graduates by looking at stocks that are 7 to 8 days old. When I look at the Fresh Face graduates, the portfolio size is probably the biggest factor determining my buy/sell decision. I know that without investments, EA is just too tough & expensive; so a small portfolio means they are likely to quit soon. Positive price graph, dividend size, and activity are the other factors that I consider. I will buy 500 to 1,500 of these depending on my cash state and my guestimate of their potential.
The next thing that I check is for folks who own at least 1 of me. I sort that list by Their shares – My shares to find the folks who have matched or exceeded my investment in them. I max or over match all of those and typically anyone within 100 or so shares of matching my investment. I next run the sort to find everyone who has an investment in me and has at least 10 EA actions this week. I buy some of all of those folks; typically 10 shares. That is usually between 500 and 1,000 stocks depending on where I am with my portfolio upgrade.
I next run a sort for everyone where I have an investment who has at least 10 EA actions. I buy some (usually 5 shares) of all of those folks if they are in the top 5,000 dividends. If you are not invested in me & not in the top 5,000 stocks, there is not much point in additional investment. As I approach 5,000 stocks in my portfolio, this becomes an issue to manage; since EA only pays dividends on your top 5,000.
If I have loose eaves left in the afternoon, I will typically work on maxing more of the high dividend stocks. I believe that I am maxed in the top 250; so I just keep working down that list. I understand my current investment strategy does not maximize my income or wealth. My net wealth is around 570M, and I receive 2.3M in daily dividends. I am unclear about any incentive to dramatically focus on growing those numbers.
I notice that my regular investments also encourage folks to buy back. I am convinced this is the reason for my slightly embarrassing price. This also seems to drive my EA network score a bit. The primary reason driving this is a hope that my investments provide income and encouragement to a wide range of players. I remember how helpful regular investments were to me as I started.
A somewhat amusing story is related. Someone complained about my small purchases pointing out that I had plenty of eaves to just max my investment in him. A quick look at his divs and stock chart revealed that he was not the highest quality investment. I told him that if I used his suggestion, that he wouldn’t see an investment from me for at least several months while I was maxing in higher scoring stocks.
Again I will tell anyone that is bothered by my purchases, it is quite easy to get me to stop. If you will max your investment in me at 1,500; then I will match your investment within a day. That makes the annoying investments from me stop…at least until Dups releases more Pie!
This strategy also explains why I deal harshly with folks who sell my shares. Since I always invest back generously in my investors, I have had a number of folks who have tried to use my kindness against me. They invest in me to produce a buy back; then they sell my shares. I don’t understand that strategy. EA is a game based on mutual success. Folks who misunderstand this principle of mutual success often look like rock stars for a time; then their sins catch up with them. I noticed with amusement someone well known for selling his investors wondering why his share price continued to fall.
One thing that I am certain of with Empire Avenue, you can’t take the eaves with you. You can take the pure gold of the relationships that you build into the world to make a real & positive difference out there.