How do you startup with low capital?

Post here if you have any strategy tips to share
Steel
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Re: How do you startup with low capital?

Post by Steel »

Yes, at some point the AI will realise your goal and they will buy back stocks. But in my game I managed to buy stocks directly from the owner of the company by making a very high offer to buy shares. Your only income source is dividents so you have to spare money and make huge offers when you are in the high millions. There is a threshold above which the AI is willing to sell its shares if you have enough money.
counting
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Re: How do you startup with low capital?

Post by counting »

Steel wrote:Yes, at some point the AI will realise your goal and they will buy back stocks. But in my game I managed to buy stocks directly from the owner of the company by making a very high offer to buy shares. Your only income source is dividents so you have to spare money and make huge offers when you are in the high millions. There is a threshold above which the AI is willing to sell its shares if you have enough money.
Relying on dividend alone in my experience would take years and years, I assume hundreds of years to be able to buy shares with premium price up to 75%, and have to pay for the rest 25% during merger as well. Since dividend is part of the profit, the higher it goes, the stock price rises along with with, for some very profitable corporation. It certainly is a very very slow process, and sometimes even impossible to chaise.
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Nazka231
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Re: How do you startup with low capital?

Post by Nazka231 »

For me it's to find the best possibility with the capital (your money + loans) you can have. The best strategy should be to have a short production path (from mines, forest, animals, etc..) to the end product. The product(s) should be highly necessary and easy to do. And a unique brand strategy or range brand strategy maybe. Also trying to be focused on one city first and then expand as wished.

Beds and frozen food are some good examples. Then the more you are confident with the risk you can support because you believe in your plan the more you can have loans and so the more options you have.
Nazka231
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Re: How do you startup with low capital?

Post by Nazka231 »

For me it's to find the best possibility with the capital (your money + loans) you can have. The best strategy should be to have a short production path (from mines, forest, animals, etc..) to the end product. The product(s) should be highly necessary and easy to do. The company should be focused on a unique brand strategy or range brand strategy, and trying to be focused on one city first.

Beds and frozen food are some good examples. Then the more you are confident with the risk you can support (because you believe in your plan), the more you can have loans and so the more options you have.
Steel
Posts: 11
Joined: Sat Nov 22, 2014 12:07 am

Re: How do you startup with low capital?

Post by Steel »

I agree that the stock buying method is the slowest in the game, it can takes many hundred years. I don't recommend it as a strategy as it is very far from real world practice, but it is possible, I did it a few times out of curiosity.

My recommended strategy is to start with a few shops selling the highest rated products of the competitors, then set up R&D centres when your profit starts to grow, and later in the game penetrate in markets where there is no competition. You can also try to compete in segments where the brand value and brand recognition is more important than the product quality once you have enough money to afford big ad expenditures. I usually make leather products for a start, you can keep up with tha AI there most of the time. My other favourite market against a wealthy AI competition is yoghurts and food in general in they are tech oriented.
counting
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Re: How do you startup with low capital?

Post by counting »

Well, there are also loophole in stock price calculation, and pure investment corporation strategy, require you to reach a level of capital by making a first high profit margin sell from the initial investment, than change your target to a much easier goal, the real capital game will start after you take control several smaller corporations and use their capital to hit bigger guy together, and make a second round of profit again, choose another target, etc. The game will become exponentially easy after you control majority of the capital/stock value in game. This way, you can actually dominate every one within 100 even just decades, depend on how low other companies' capital are to begin with and how many of AIs are there.
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counting
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Re: How do you startup with low capital?

Post by counting »

openbu.org wrote:I started very complex & dangerous.
(1)Borrow $10,000,000 from Commercial bank.
(2)Issue new shares to the public,get cash $ 5,344,200
(3)Create a commercial building next to stock exchange.
(4)Buy the land plots next to stockexchange.
(5)Sell the personal Stock of my corporation,to find & buy the low P/B ratio stock.
(6)Issue,Issue,Issue,,,,,
(7)Tunneling

...
The tunneling part is using loophole already :roll:

And from your pictures, your positive income is mostly generated from commercial building, and it's just the beginning, long ways to go for the first above 50% controlled subsidiary. The more subsidiaries you can control the more bargaining power you will have, the problem is to get at least 2 of them before it can snowball.
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counting
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Re: How do you startup with low capital?

Post by counting »

openbu.org wrote:Why every time my company's stock price will drop 50%?I just built commercial building in CBD.
Did you need to pay extra to tear down existing small houses to build your new commercial building new CBD? If so, tear down houses causing expenses, the real estate asset value also become less than the cash you spend, the initial overhead before it can turn a profit is a drag down for profit margin as well. And before your corporation has a positive EPS, the stock price will hover at a very low point.

Also, did you check the current economic status?
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counting
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Re: How do you startup with low capital?

Post by counting »

openbu.org wrote:annual return=? total return=?lifetime return =?
First, the definition of variables
The current stock price = C
The stock price a year ago = Y
The IPO stock price of the business = I
The average purchasing price of currently hold shares = A

Annual return (rate) = (C - Y) / Y * 100%
Lifetime return (rate) = (C - I) / I * 100%
Total return (rate) = (C -A) / A * 100%

Assuming there's no stock reverse split happened and readjust the stock price index.
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counting
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Re: How do you startup with low capital?

Post by counting »

openbu.org wrote:

Did you need to pay extra to tear down existing small houses to build your new commercial building new CBD? If so, tear down houses causing expenses, the real estate asset value also become less than the cash you spend, the initial overhead before it can turn a profit is a drag down for profit margin as well. And before your corporation has a positive EPS, the stock price will hover at a very low point.

Also, did you check the current economic status?
Not pay extra to tear down existing small houses.
I don't know .
another P/B ratio =0.50
Hmm, since your EPS is still negative, it's not a surprise P/B is low. Expansion status is a step up to static, so the adjustment to stock market is a slight upward.

I wonder though, since you were constantly buying and selling stock shares, did other AIs also trade on your stock frequently (AI has a tendency to join a stock trade, when a human player trade on one stock consecutively)? Temporary price shift due to stock trading could drive a stock price to a different level for quite a while.
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