Empire Avenue (EAv) is a social stock market simulation. Players buy stocks in one another using a virtual currency, eaves (e), and these stocks pay daily dividends based on social media activity.
However, this simulated economy does not work the same as a real one. Most players do not speculate on the rise and fall of share prices to make a profit. Instead, savvy EAv investors amass their fortunes with residual income earned as daily dividends.
Calculate Yield
Imagine you are comparing two players with share prices of 100e. One pays an average of .50e per share in daily dividends, the other only .20e. Obviously, the first player offers a better return on investment.
This is the logic behind investing for yield. Empire Avenue players use the following equation to calculate yield:
Yield = 100 x (dividends/share price)
For our example, the first player would have a yield of 0.5 percent and the second player only 0.2 percent.
Avenue.io is a useful tool for sorting and managing your EAv holdings, and, like Empire Avenue, Avenue.io has a free, entry-level membership plan. With it, you can easily find high-yield investments.
Once you join Avenue.io and log in, click the View Ticker button.
Next, you need to import your Portfolio and Ticker data using those buttons on the screen.
100 x (.50e/100e) = 0.5%
100 x (.20e/100e) = 0.2%
Find High-yield Stocks on Empire Avenue
Avenue.io is a useful tool for sorting and managing your EAv holdings, and, like Empire Avenue, Avenue.io has a free, entry-level membership plan. With it, you can easily find high-yield investments.
Once you join Avenue.io and log in, click the View Ticker button.
Next, you need to import your Portfolio and Ticker data using those buttons on the screen.
When Avenue.io has your current information, you can then use the Stockfinder to search for high-yield stocks.
You can choose your search criteria in the drop down menus. You might start by searching 10, Stocks Not Owned, Div Yield %, Highest to Lowest, and then click the Search button. This will show you the ten highest-yield stocks you do not own.
Click on an account's icon to go to Empire Avenue and make a purchase.
Watch out for Fresh Face stocks. These stocks appear to have high yields because their prices are so low, but new players often abandon the game before the week is out. Your eaves might bear better fruit in a more experienced player who has committed to the game.
You can spot Fresh Faces on the list by the green icon next to their names. I am not saying never buy newbies, but when you start out on EAv, you should focus your high-yield investing on players with extensive networks.
Return on Investment (ROI)
Some players call the yield calculation "return on investment" or "ROI" for short. While this designation is true when weighing a purchase, I think it is a misleading phrase when reviewing your current Empire Avenue portfolio for potential sales.
For example, at the beginning of March, I saw a thread in the Empire Avenue General Discussion community about an active player who accidentally cancelled his ticker. He rebooted from scratch, and I seized the prodigal son opportunity.
I bought my first 200 shares of Jose Antonio at 20.45e. As I write this, his share price is 310.31e and his average dividends are 2.23e. So far, he has a respectable .72 percent yield.
If I am considering a new purchase, then, yes, that .72 percent yield is indicative of the ROI on those shares. However, the true ROI on the first batch of Jose's shares I bought is closer to 10.90 percent.
100 x (2.23/20.45) = 10.90%
Free Shares Have an ROI of Infinity
Consider also the ROI of the shares you receive free in invest missions. Those holdings have an ROI approaching infinity.
Some players look at today's yield and mistakenly believe low-yield shares are poor investments to hold, when many times they were never truly investments in the first place. They were gifts.
Tomorrow's post will delve deeper into the folly of selling for ROI.
What Is Your Investment Strategy?
Please comment below and share your tips for finding good investments on Empire Avenue.
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Stock market news photo courtesy of AndreasPoike.
Very interesting stuff! Thank you very much! I was looking for something like this. e(Atotsm)
ReplyDeleteYou're welcome, Thomas. I'm pleased you find it helpful.
DeleteYou are giving great tips and advice here Tammi. In the end though it is mainly about people.
ReplyDeleteGood point, Michael. It is always about the people.
DeleteThanks for the enlightenment regarding Avenue.io. I'm on my way there now!
ReplyDeleteGlad to help, Jim!
DeleteGood stuff, Tammi. Ever since Dennis stopped his service, I've been on manual. I appreciate your post.
ReplyDeleteThanks Chris! Yes, Dennis' app was awesome.
DeleteTHANKS kindly subscribed to your information
ReplyDeleteYou're welcome, Mary Helen.
DeleteExcellent! I love playing the game, but have a hard time understanding the "Stock Market" aspect of it sometimes, thanks for the details!
ReplyDeleteYou're welcome, Joe. I hope you find the tips helpful.
DeleteGood advice Tammi. Personally, I don't treat the game as if it was my own real money. If someone buys my shares I buy theirs regardless of ROI.
ReplyDelete