Can’t Take It with Me

imagesSeveral 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.

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14 thoughts on “Can’t Take It with Me

  1. cjnewsome says:

    Loved the blog Harold. You gave a lot of helpful tips, I may incorporate in my own strategy.

  2. Rob Zabel says:

    Enjoyed your post, shared to facebook and tweeted

  3. […] Can’t Take It with Me. […]

  4. tulleuchen says:

    Good to learn about your strategies. Sorry about before btw. We’re all learning and making mistakes here. Seems strange to have a place that is for connecting, but also it’s a game, and it’s a stock market. I’ve found the hard way that those 3 ideas don’t exactly mean what they usually mean when thought of separately.

  5. marcelaubron says:

    Like this very much, Harold, and appreciate your support!

  6. Great post Harold. EA is an interesting game in that the playing strategy changes so much as you grow in the game. I don’t have nearly the daily spend level you have achieved, but your current strategies are certainly match how I like to play and useful down the road. So long story short is “this is a keeper”. Thanks for sharing!

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