First off, you're pretty correct so far in your assumptions. Gornick's and Deprived's responses are generally pretty spot on as well. I'll see if I can add anything to the conversation..
So.. like.. is it just me or does every single "company" (with the exception of satoshi dice and possibly one or two others) make a huge loss ?
It really depends on two things (from my perspective): 1) the type of company or fund, and 2) effective management.
As I'm sure you've seen, there are tons of different mining securities out there. Some have been going for a while, still generating revenue and paying investors proportionally...others may have overestimated their aspirations and ended up going under because they weren't able to pay their investors properly...or their idea was terrible to begin with because they didn't think it through.
With the mining "companies" and the "companies" which invest in other "companies"... Does anyone ever make a profit long term ?
and if not, Why do people keep investing in them ?
Yes and No. Based on what I've seen, certain mining companies tend to favor the operator more so than the investors, specifically those where you purchase MH/s or GH/s per share. Mining companies that issue bonds are generally in the same boat, given investors money is being pooled to purchase equipment which will (in the end) still generate money for the operator after the bonds are paid back. Personally, I've never been quite comfortable with either model given it puts the operator above everyone else. That's why I've created a Note (essentially a smaller bond) fund to purchase equipment, which will then be rolled into stock for my investment company after the note holders are paid back. This way all investors benefit from a pooling of their bitcoins, instead of just the operator (me).
As for "Passthru" funds..I've got mixed feelings about them as well. Pooling everyone's money for one particular company amplifies risk since there isn't any diversification. However, with the right company being invested in, payouts can be quite nice.
I can only assume Satoshi dice does well because its a proper company offering a real service, right ? Which would sort of be a key factor in the sucess.... ?
And for those companies that definitely did make a loss and then just start up another company.. why the hell do people invest in that ? What makes people think the second, third and even fourth 'company' will be any better ?
Satoshi Dice has been a pretty decent investment in the past..as I consider most casino based games given the house always has the advantage (so statistically it
always makes money).
As for why people make more companies that fail...I don't know. It's a mix of "I hope I can do this right this time around" from the owner's perspective, and "Gosh, they're back again so must know how to do things right this time" from the investors perspective. I'm all for the mantra "Try, try again", but only if you're working with your own money and not someone else's.
