Sunday, January 8, 2012

How to win monopoly game

Monopoly game is a fantastic game. Its truely real life. You can view player as you or a company.

1) cash flow is the single most important thing. Build it.
2) Make sure you and the company you invest always have cash to meet daily life and daily operation, including allowance for unexpected event that need cash.
3) After fulfill step no.2 requirement, all cash are excess cash. Find place to park your excess cash at places provide highest return with tolerable risk
4) As your asset or investment generate income, reinvest the cash and find place to park the cash like step no.3.
5) Always review and repeat step no.2 to step no.4. As you have more asset, cash flow grow.

Additional tips:
6) When supply become limited, willing / not afraid of, to bid for high price or offer record high price, depending on your financial strength, (financial strength can be known by reviewing step no.2) to get asset and to grow income, but most important to gain competitive advantage.
7) Willing / not afraid of, to buy / trade with other for very high or record high price, to get asset that have potential to provide you competitive advantage, in whatever way (even mortgage)

Lesson
8) When you are strong, (most importantly you have a lot of good assets, 2ndly you have have lots of cash) you have negotiation power, you get better deal. If you are weak, you have to accept lousy deal.

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