Esim - The Golden Company – Phase 1
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The Golden Company – Phase 1

Based on the advice of some, and the heckling of others, we’ve decided to take this Company in steps, rather than shoot for the moon with 6 Q5 companies right out of the gate. In addition, we’ve put in additional capital to ensure this party gets started, and so we have more “skin in the game”, as it were.

Phase 1 Plan

The overall investment objective, philosophy and return to investors remain unchanged. Phase 1 will consist of – as you may have guessed – the first Q5 company. The first Q5 company will be a Q5 weapons company located in the United States. The company will pay at-market wages, and will be actively managed to ensure sufficient active employees. If you have interest in WORKING for the company at current market rates, please reach out to Dorn . We will continue to sell shares for Phase 2 (which, you guessed it – will be a second Q5 company!) while Phase 1 remains operational.

Phase 1 Funding

Our current funding stands at 353 gold and 900 USD. The USD and 3 of the gold will be used for operating costs (raws and salaries). To create the Q5 Weapons company, we need 390 gold. That means we need to sell 8 more shares to get there. Once those 8 shares are sold, we’ll move forward with the company – and about a week later, the first dividend payment (see below). To date, we’ve sold 39 shares at 5 gold each (195 gold). That means that our MU has put in 176 gold – and once the other 8 shares have sold, that will represent 42.8% of the total capital for the first company (verses the 50 gold, or 12.2%, we had planned on initially). So, we’re now more invested, and have put in a higher percentage of the capital for Phase 1 than the percentage of profit we will earn.

Phase 1 Dividends

As stated in our original plan – once we are through all six phases, our MU (via the CEO’s shares) will earn 28.3% of the net income, and the investors will collectively earn the other 71.7%. Until we do reach Phase 6, our plan to send out dividends, and re-wash the CEO dividend back through the company via another dividend will not be possible due to the mechanics of the game (we’re starting with 1000 shares, so most dividends will go to the CEO shares). Until then, the CEO will make manual transfers to each investor so they receive the promised dividend payment (see below for example calculations). With 47 shares having been sold, those 47 shares will receive 71.7% of the income – or about 1.52% of the income per share

(NOTE: As we move into Phase 2, the percentage of income per share will dilute – because our MU doesn’t have enough money to fund the same percentage of each company. That calculation will get a bit complex, but at the end of the day, once phase 6 is done, each share should get approximately 0.153% of the net income of the entire company. While the income per share will be diluted as we go, early investors will be rewarded in the meantime with a higher percentage of the income pie, until we become fully invested. For now, we will hold on issuing Phase 2 shares until we can establish a plan on how to pay dividends while Phase 2 is being funded).

Expected Phase 1 Return

As you may know, the daily profit a company makes is subject to a variety of factors – and in the case of public companies, some limitations. My current calculations for our initial company suggest our expected profit based on current market conditions will be between 2 and 2.5 gold daily. This may go up or down, depending on market conditions – and I further note that in order to pay this out via dividends, we will of course need to liquidate the stock daily – which we may decide to (or be forced to) delay due to the limitations which prevent public companies from selling anywhere but the market.

Based on the above caveats and assumptions, Phase 1 should produce between 14 and 17.5 gold per week. Such amount will be issued as a dividend – and because the number of shares is so high, each share would receive 0.014 gold to .0175 gold from the dividend. With 953 of the outstanding shares, the CEO will receive 13.342 gold to 16.6775 gold. As noted, the CEO will only be keeping 28.3% of the profit, and thus would retain 3.962 gold to 4.9525 gold. The remainder will be sent directly to shareholders by the CEO. As noted, for Phase 1 the total profit received by each of the 47 shares will represent 1.52% of the income – which will include both the direct transfer via dividends, and the indirect transfer from the CEO.

On a monthly basis, the expected return (using the assumed daily profit noted above) would be 18.24% to 22.8% (based on the 5 gold initial investment). Don’t forget that the return won’t be that good once we hit phase 6 (using 2-2.5g profit for 6 companies, the return per share would be 11.02% to 13.77%) – so enjoy the stronger returns while they last, and think of them as a thank you for putting your faith in us to manage your money.

We’ll see you soon for Phase 2!


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MU Econimics (13 years ago)

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The Golden Company - Phase 2 (13 years ago)

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