In a previous post, I spoke of two strategies of winning in the end game. First, there was gradually over taking the competition with superior revenues and stock appreciation. Second, there was creating total chaos and turmoil in the operational and stock spheres.
Here is how turmoil is accomplished.
I previously held the B&O RR. The B&O was under capitalized (it was floated with a very low par value {IPO} meaning not too much money in the treasury). This would clearly present problems down the road for me the President of the B&O, since the company would not be able to keep up with technology advancement and buy additional rolling stock. This would leave me with two options:
(1) Withhold B&O dividends to build up the treasury so that the B&O would be ready when its existing rolling stock obselesced. The main problem with this approach is that I would receive no dividends to increase my net worth and it would depress the value of my B&O shares making me even poorer.
(2) Later pay out of pocket to purchase rolling stock for the B&O.
Generally, #1 is more attractive than #2. At least, with #1 all share holders of B&O share the pain. With #2, only the President of B&O would feel the pain and the other share holders invested in 40% would get bailed out by the President, me.
But the above were not the only options. As it turned out, since it was early in the game and other investors low on cash were looking to ride on my coat tail having floated the B&O, they also bought stock in the B&O. (If an investor holds 20% or more a RR, then the presidency of the RR can be dumped on that investor.) Given that one investor was foolish enough to buy a 20% or more stake in B&O, this gave me another option. I totally ignored the treasury and depleted buying "make a quick buck" rolling stock to up the dividend payments. Most of that dividend would go into my pocket as President. Then, when we got back to the Stock Trading round, I dumped the B&O with soon to be obsolete rolling stock and no treasury the stupid investor.
The above allowed me to get me out of B&O and dump the stock at top dollar. I then took the cash and floated another company with a fresh and healthy treasury. Thus, I screwed one fellow investor and also would accelerate the pace of the game with the extra cash I received which would cause more problems for the others too!
So, I said I would tell you how I created stock and operational chaos. First, you must understand that technology (trains) goes obsolete in this game. Unlike many games where there is a calendar or clock, 1830 has no such mechanism. The sale of particular more advanced trains causes the obsolescence of earlier models. So, you can cause problems for other RRs and their presidents by purchasing advanced technology before they are in a position to deal with the situation. This is exactly what I did.
Look at my train holdings here the Erie and the B&M. These trains forced everyone else's rolling stock to go obsolete. I did this with the money I made in the stock market above by dumping the B&O. Here you see, Ames (#2 from the top) has purchased rolling stock for his RRs which they could not afford. So, he had to pay out of his pocket. How can you see that? You will see that the treasury of his two RRs, the B&O (the one I dumped) and the NYNH, are at $0. This means the treasury was wiped out to buy rolling stock and Ames made up the rest from his own pocket! :)
Now, look at Drew and Gould (the next two investors). They will be in exactly the same position. They don't have rolling stock. The rules say that a RR must have rolling stock and if the RR cannot pay for it, then the President must. First, he will use his cash on hand. Second, he will sell stock if necessary to raise additional cash. Third, if he still doesn't have enough, he will go bankrupt, and the game will end immediately.
Now, look at the net worth graph following this Operating Round. Notice the sharp drop in everyone's net worth, but my own. That's the result of me leaving them all high and dry in the operational round unprepared for the pace at which I introduced new technology into the game. So, it hit them in their wallets hard. You can just see them beginning to make money again. However, it is already too late. They have all taken a hit that will be beyond their ability to recover from this game.
Unlike many financial games, 1830 is not a game of slow careful building. It can be, but it definitely doesn't have to be. It's a game of brutal trading maneuvers in the stock market and disruptive practices in operations that would make Rockefellor or Bill Gates proud. So, although 1830 is technically a "business game" for a "business game" is in quite a few respects has the attributes of a fine war game as you see.