Wednesday, January 8, 2014

Increasing my maximum investment

I've had isk building up lately and nothing to invest it in. I need an opportunity which will increase the size and return of my total investment, ideally without adding effort.

This brings me back, after many years, to the idea of copying titan blueprints. But first, some rumination:

If I invest 1.2 billion isk in a capital component blueprint, I spend 1.81 months researching it and then sell it for a profit of maybe 144 million isk, which comes to 12% APM (monthly profit). More APM is better, but the size of the investment also matters: If I make 100% APM on an investment of a million isk, my profit after a month is fuck all. If I make 12% on an investment of 1.2 billion, my profit is 144 million. If I make 5% on an investment of 120 billion, as I would be if I kept my capital manufacturing process running at capacity, then I make 6 billion.

Larger investments have lower APM. You could keep your investments small, but there's a limit to how many you can have going at once. If I put my entire net worth into capital component blueprint research I could make 48 billion per month*, but I would need 300 material research slots, which is 7 large towers, and 10 accounts, to keep it going. While fueling 7 towers and installing a thousandish research runs per 1.81 months isn't impossible, it would get old quickly.

If we want to increase income without increasing the number of slots we run, we have to make a larger per-slot investment at the cost of lower APM. The trick here is that you can't increase your investment by more than your APM decreases -- if investment doubles but APM halves, you're making the same amount of money.

So let's look at copying titan blueprints:

I'll do the math for you: A ragnarok blueprint increases per-slot investment by a factor of 56, while decreasing APM by a factor of 9. This yields 6x the income per slot. The downside is that 144 million times 6 is not a huge number, and getting that return eats a vast amount of liquidity. Liquidity is a Good Thing.

Just eyeballing the BPC market it looks like I could probably put over a trillion isk into titan blueprints before I crash it, so it is something I could dump profits into for a very long time indeed.

*This would actually just crash the market.

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