Originally posted by Alva
Just to point out that considerations other than money also play a role. When you get to a new area, you will want to pick a coastal province with a large number of docile natives and colonize it heavily. That will be your base camp which you will fortify to Medium ASAP, this is where your fleets will stay, your conquistadors will disembark and your armies will winter. I'd colonize around it meanwhile, but not heavily - just marking out the area with lvl 1 colonies. Then I would either found another base camp somewhere or invest in lvl 7 around this one (especially if it springs a COT).
This, I would say, is the middle-of-the-road strategy between targeted and scattergun that makes most sense to me - colonization relying on impregnable centers of power (COPs) rather than COTs. Sure I'll make less money than Isaak Brock's country, guided by his financial acumen - but hey, I'll feel more secure and historical that way.