Becoming a trillionaire

[mase]

Hey,

I am a player coming from Capitalism 2 and I found Capitalism lab to be much harder to play, the a.i is smarter in this game and I wasn't able to easily become a monopoly as I had previously through vertical integration and undercutting the competitor's prices so I took a different approach which is to instead own all my competitors which is in effect the same as having a monopoly.
1. Buy all of your company's stock so you own 100 percent of it, after this you will have around half your wealth depending on how much capital you started with.
2. Then I opened a frozen chicken farm and made and sold wine(or sell another high profit item) and that is just to generate some profits. I didn't sell any other products or open any other firms except banks which I will get to.
3. Invest in a profitable public company at the beginning stage, with this game once a company starts to be profitable it continues to be and without your efforts to impede that, the a.i. companies generally do not bankrupt one another. At the beginning stage the price will be cheap, so you can along with loans own around 100 percent of it with your modest profit. Now normally in capitalism 2 I would have waited for the price to go up and then sell it and use profits to expand my business with extra capital which helps me dominate my competitors but since capitalism lab is harder I keep them as a subsidiary.
4. Then with the digital age dlc on I buy a promising start-ups through private acquisition. Now with these two companies I set the dividend rate of the companies I own around 50 percent. Tech companies are great to own but really annoying to operate because of all the research that is necessary.
5. Then I bought an insurance company, as you can see mutual group. Insurance companies are really annoying to micromanage because you have to constantly buy securities but they are a good investment because you can use the insurance company's float(which is the policy premiums before being paid out) to invest in other companies you want to buy.
6. With my profits from my other companies I continue to buy other public companies and/or increase my shares in the ones I already own although they are getting much more expensive so to get around that what I do is increase my ownership to 50 percent so then I have control. I then use my control to take the profits of the company and give it to me(through a special dividend ) when then I use to buy more of the company. Essentially using the company's money to purchase the company,which is something wall street actually does in acquisitions. Also I force the company as you can do in the company to issues shares to me(parent corporation) and again partly fund it using the company's own cash to do that by the special dividend.

7. So after I am doing all this I own almost every company in the game and my subsidiaries are in every line of business so my corporation is highly diversified. Around this time I open banks, as you can see I end up making around 3.6 billion a year with banks. You should wait until later to open banks because they will end up needing cash early on to support but you can make alot of profit with them. Along with the banks I open my own media firms to advertise for the banks so that way I am essentially getting free advertising and making a profit along the way through the media firm itself. The key to making a profit with banks is to set high asset to loan ratio, competitive deposit rates, high training and majority of loans in AAA, AA and BB loans which offer considerable profit with a small rate of default. You want to find the the idea profit from higher interest rates versus defaults. Now with my banks I am making more money.
8. But at the same time I am expanding so has one company Round Petal which mostly sells software and this company even with all the other corporations I control, special dividends, line of credit is still far outside of my ability to buy outright. So what I do is use the insurance company's float to buy the shares along with the rest of the cash I own. I then once I get a sizeable share of the company with the insurance float, I then sell those shares and buy them back with the insurance company's cash and so that is so the company itself can own the shares as opposed to the float. Also around this time I set all dividends to 90-100 percent so all the profits of the subsidiaries go to me.
9. I will say I tried to use my cash previously to set up my own subsidiaries and despite a high amount of start-up capital, setting the management to focus on specific industries, to vertically integrate and experimenting with different settings I found they would always do poorly. The A.I. does not manage subsidiaries you start as well as the a.i. manages competitor a.i. companies(which it should if its the same a.i.) so instead I let the a.i. competitor do the better job of managing corporations for me(which I come to own).
10. To go back to Rose Petal, I end up owning all of it(after spending a huge amount of money purchasing the company from the ceo at inflated prices) and now I own every company/competitor in the game except for one, one company that makes 32 million a year through ISP.
11. My corporation in total if you include all the companies I control receives 21 billion a year in dividends and in total I have received 800 billion in dividends. My corporation itself makes around 3.6 billion a year in banking. Although the net income in the picture is red that's showing a negative stock return which is based on my corporation's share price, which is always fluctuating in the game.
12. As you can see in the game I am a trillionaire with a net worth of 1,036 billion dollars.

That's how I play and my strategy. Basically the best way to become profitable in the game is by subsidiaries and banking.

[chengtsai]

Great post despite it took you 87 years to complete 1 trillion evaluation.