My wife and I played a game of monopoly with our 9 year old god daughter over the weekend. We lost, with our god daughter draining us of our money, and forcing us to sell properties back to the bank, or to her as payment. She ended the game with over $4000 in cash, and a decent 25% of the properties on the board.
I find playing against adults much easier than playing against a child. Most adults acquire as many properties as they can, before the other adults do. They attempt to eventually own as many houses and hotels as possible, leaving them cash poor and asset rich. But since all the adults in the game play the same way, it usually evens everything out.
However, this strategy did not work when playing with our god daughter. She didn’t leverage at all and only purchased the properties that seemed attractive to her (not sure what her method was for choosing, it was probably the color). However, she had more than enough cash to purchase any property she landed on, and also enough to pay rents that we had. We had more properties but not a lot money to build enough houses & hotels that would use up her cash hoard. She eventually decided to build houses & hotels herself, dwarfing ours in sheer number. After landing on her hotels, we were forced to sell off our properties one by one. This did not help our situation. The rest is history.
Noted This Week :
– Having an adequate sum of cash on hand is just as important as having and acquiring assets. It allows you to handle any unforeseen events, as well as take advantage of any good opportunities that might arise.
– Pace. Don’t go too fast. Move as fast as your resources and knowledge will allow you to. If you over extend yourself too much, it can leave you stretched too thinly for resources, or in a situation where you require much more knowledge than you currently posses. That can lead to a dangerous situation and potential loss of money and assets.
– Be careful not over leverage, and invest/acquire only what you reasonably can obtain at that particular moment in time. As resources increase, you may want to increase leverage. However, you may want to maintain the same moderate proportion or ratio.