presentation on the board game monopoly - a real estate trading game

1. MONOPOLY – A REAL ESTATE TRADING GAME
PRESENTED BY
SHUBHAM PRADHAN
YAMINI GUPTA
DEBASISH
SHREE RAM
UPMAN
SIDDARTH

2. CONTENT
► INTRODUCTION
► TYPES OF MONOPOLY
► COMPARASION
► KEY LEARNINGS
► PLOT
► LESSONS ON Finance And Investing
► CONCLUSION
► REFRENCES

3. INTRODUCTION
DEFINATION - The Word Monopoly is a Latin Term. ‘Mono’ means Single and ‘Poly’ means Sell
► Monopoly has been a classic board game for over 100 years. It's a real estate trading game that nearly
everyone plays for fun.
► Monopoly ,the game offers a lot of financial wisdom and lesson that can be applied to the real world of finance
and Investing.
► A monopoly is a market structure in which there is a single supplier of a product.
► Monopolies exist because of barriers to entry into a market that prevent competition.
► The monopoly firm (monopolist):
► May be small or large.
► Must be the only supplier of the product.
► Sells a product for which there are only close substitutes.

4. TYPES OF MONOPOLY
 Natural monopoly: A monopoly that arises from economies of scale. The economies of scale arise from natural supply and
demand conditions, and not from government actions. Example electricity
 Local monopoly: a monopoly that exists in a limited geographic area.
 Regulated monopoly: a monopoly firm whose behavior is overseen by a government entity.
 Monopoly power: market power, the power to set prices.
 Monopolization: an attempt by a firm to dominate a market or become a monopoly.
EXAMPLES OF MONOPOLY
► Luxotica (biggest manufactures of eye glasses)
► Uniliver (180 countries 400 brands. Products – Lipton, Sunsilk, Dove etc)
► Google
► Reliance Jio
► Coal India
► Railways
► Power distribution.

5. Comparison
MONOPOLY v/s PERFECT COMPETITION
MONOPOLY PERFECT COMPETITIVE FIRM
It is a sole producer Is one of many producers
Has a downward-sloping
demand curve
Has a horizontal demand curve
Reduces price to increase
sales
Sells as much or as little at same
price
Is a price maker Is a price taker

6. Learning's
► This helped us in understanding real-estate market to an extent.
► Keep cash reserves and maintain a stable cash flow.
► Buy properties which will make you more income.
► Think long term.
► Importance of location.
► Buy cheap properties in different regions.
► Due diligence.
► Loans are not a bad thing when you can pay it back.
► Joint ventures can also help you when you are completely aware of the deeds

7. Plot
 Millions of soldiers
 1000s of leads
 100s of warrior
 The Pancha Pandavas
 The Lord Krishna.

8. LESSONS ON FINANCE AND INVESTING
 ALWAYS KEEP CASH ON HAND– The most important lesson in the both
the game and the financial world. To win in Monopoly you have to be the
last one to have money. For example ,when the Great Recession hit,
people had been spending cash like crazy, thanks to an addiction to credit.
Yet when the housing market went bust and the U.S. banking crisis
erupted, those without cash were decimated. The Monopoly effect took
place: without cash, folks had to "sell-off" what they owned at steep
discounts.
► BE PATIENT - To win at Monopoly you have to be patient and have a
game plan. You just can't win by buying every piece of real estate you land
on; you have to have a general approach of how you want to proceed. For
example KG basin invested by Dhirubhai Ambani in late 1991. “The
share of gas in India’s energy basket is set to increase from 6.5 per cent to
15 per cent. Government is focused on making our economy gas based.”
said by Dinesh K Sarraf, ONGC chairman.

9. ► FOCUS ON CASH FLOW - Monopoly is a simple game: you start off with some money
and your goal is to be the last player standing with money. The way you win in Monopoly is
by collecting rents on property, or cash flow. For example In investing, the most successful
investments come from those companies that can generate growing cash flows. Iconic
companies like Coca-Cola, Johnson & Johnson and IBM have been highly successful
investments for decades because of the growth in cash flows.
► THE MOST EXPENSIVE ASSET IS NOT ALWAYS THE BEST- Those who win at
Monopoly, and investing in the long run, instead focus on the value gained for price paid. In
investing you win by buying low and selling high. For example bitcoin cryptocurrency
► DON’T PUT ALL YOUR EGGS IN ONE BASKET - Usually the winner is someone who
spreads out his or her properties throughout the board and has multiple chances at
capturing rents. The same principle applies in investing. If you bet everything on one or two
stocks, you are exposing yourself to a potential wipe out if something goes wrong. At the
same time, you can dilute your gains by trying to own 100 different stocks. For example
Reliance Industries Limited (RIL) . Reliance owns businesses across India engaged
in energy, petrochemicals, textiles, natural resources, retail, and telecommunications

10. Conclusion
Of course, a board game like Monopoly shouldn't be taken as a
thorough education in finance and investing, as it certainly has
it's flaws. However, it does have some valuable lessons to
teach, such as to spread yourself out across the board
intelligently, keep cash on hand, focus on cash flows, be
patient and pay attention to price. Use these five lessons as a
guide post to more intelligent and successful investment
decisions.

11. References
► Google
► Investopedia
► Wikipedia
► Quora