Simcountry is a multiplayer Internet game in which you are the president, commander in chief, and industrial leader. You have to make the tough decisions about cutting or raising taxes, how to allocate the federal budget, what kind of infrastructure you want, etc..
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Investment Fund Competition

Topics: General: Investment Fund Competition

John Galt

Friday, August 17, 2018 - 06:50 pm Click here to edit this post
I have been manually managing my investment fund for about a year now. I'm curious to know whether automatic management grows faster than manual. So lets compare our investment funds to see how everyone measures up haha.

My secured country fund is at 5.85T right now. That is the highest out of my empire. What about you all?

Madoff

Friday, August 17, 2018 - 09:57 pm Click here to edit this post
There are investment funds in C3s that have more than that. C3s buy low and sell high. You've said you only buy and hold, right? The odds favor automated investing.

Besides, the amount in investment funds depends a lot on the amount of population. The more population there is, the more they contribute to the investment funds.

SuperSoldierRCP

Friday, August 17, 2018 - 10:37 pm Click here to edit this post
24T ATM

At my height before the updates a few years back I was at 100T

John Galt

Monday, August 20, 2018 - 04:05 am Click here to edit this post
I haven't seen any C3s top 500 B on investment fund on LU. I'll try setting one of my countries to automated and see how it measures up over time.

Madoff

Monday, August 20, 2018 - 05:57 am Click here to edit this post
Some c3 investment funds on LU regularly buy my shares:

2T in assets

2.3T in assets

2.6T in assets

3T in assets

A few c3s, my favorite investors, have between 8T and 15T in investment funds.

Daniel Iceling

Monday, August 20, 2018 - 09:58 am Click here to edit this post
Madoff, John Galt,

The Automatic system tries to buy low and sell high. However the end result isn't anywhere near that clean. It sells stocks that have a high P/E, which means it is often selling the stock when a Corp is at a loss, and it's value is at its lowest.

Additionally, the automatic system has a lot of features built into it, that help the market function. However, these features don't necessarily make for the best profits for the funds owner.

Once you understand the AI, it becomes relatively easy to manipulate it. This leaves automatic funds vulnerable to players that know how to out smart the AI.

Unless you don't understand what you are doing. Long term a player managed fund will outperform an automated fund.

Signed President of DanNation on LU

Madoff

Monday, August 20, 2018 - 12:24 pm Click here to edit this post
It's possible but improbable for a player to beat automatic investing. Players usually don't look for bargains among thousands of corps every single game month. Or monitor the performance of each investment fund corp regularly. That searching and monitoring would require a fantastic amount of clicking.

Automatic investing is efficient, even though PE is a simplistic criterion. Most public corps are profitable most of the time. That makes buying low PE and selling higher PE profitable more often than not.

John Galt

Monday, August 20, 2018 - 02:59 pm Click here to edit this post
Do we know if C3 investment funds reset when a C3 country is taken over or purchased by a player? If that is the case, I wonder how long those C3s with large funds have been investing for. Also how much are they paying out to their relatively small population. It is kind of comparing apples to oranges with a large player controlled country vs a small C3.

Madoff

Tuesday, August 21, 2018 - 01:20 am Click here to edit this post
When a player becomes president of a c3, its investment funds don't reset. I suspect the c3s with big investment funds have been benefiting from compounding for a long time.

You can see the payout to workers on the Investments page of each c3. For example, the c3 with 3T in assets pays about 2.5B per game month. Then the workers pay roughly 40% of that to the country as income tax. That means the country gets about 1B per game month in income derived from investment fund payouts.

To extrapolate, every 3T in investment funds is like having an extra 2 fully upgraded state corps paying 70% tax or profit transfer. (That assumes an average profit of about 700 million per month per corp.) Nice extra income for the country, right?

John Galt

Tuesday, August 21, 2018 - 04:27 am Click here to edit this post
Right so my point is that the C3 with 3T in assets could have been compounding for who knows how long. So we can't really say if it is more effective than manual control without running a more controlled test. I've managed 6T in about 1 real year of a mostly buy and hold strategy in sectors that are generally profitable. I set one of my new countries to automatic so I can see how it measures up over time. I'm hoping you are right, because it is one less thing for me to manage when I log into my countries every day.


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