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Article View: comp.sys.ibm.pc.games.strategic
Article #712816

Capitalism Plus Strategy

#712816
From: Phil H. Sheraton
Date: Sat, 01 Mar 2008 16:17
57 lines
4388 bytes
For those of you who play "Capitalism Plus" by Interactive Magic, here is my 
winning strategy that accomplishes my goals every time even on the hardest 
difficulty settings. (I usually set myself the goals of $100M revenue and 
$1B net worth within 30 years.)

First when my company starts out with 1,000,000 shares outstanding (50% 
public) and $10M cash, I immediately buy back all the public shares and get 
100% ownership. Then I take out the max $10M loan so I have $15M working 
capital. (Since my strategy causes my share price to grow the fastest of 
all, buying it all back is the best investment. It also prevents hostile 
takeovers.)

Then I build one leather goods store, one medium farm and one large factory. 
In the farm I raise two units of cattle and process both into leather. I 
make the factory produce leather wallets. The farm also grows three units of 
cotton, and when those are harvested, I make the factory produce textiles 
and combine it with leather to make leather bags and leather briefcases. (If 
there's enough money left, I try to build three leather goods stores right 
at the start in three different cities.) I also raise the price of my cotton 
so competitors are dissuaded from buying it all before my factory can use 
it.

After I've got leather goods stores in all cities and strong profitable cash 
flow, then my credit limit should let me borrow another $10-20M by year 2. I 
do that, and build an oil well and a chemical mineral mine on the cheapest 
deposits I can find. Then I build another large factory, and convert oil to 
plastic, which I combine with chemicals to make cough syrup, cold tablets 
and headache pills. I then sell those with a drugstore in every city.

After another two profitable years, I should be able to borrow another $50M 
or so, which I do and build a gold mine and silver mine. Then I build a 
small factory near each city and set them making gold rings and silver 
necklaces, which I sell in jewelry stores.

By now my cash flow should be well over $1M per month, and I should have the 
$3M to build a headquarters, where I set my character's salary to max, and 
set my dividend to 1 percent. I also consider building a couple of R&D 
centres.

By year 7 or 8 I should have cash and/or available credit around $100-200M. 
I build a medium farm and set it to grow rubber. When the rubber is ready, I 
build an iron mine, coal mine, silica mine, and all the industry needed to 
produce cars and motorcycles, which I sell with an auto dealership in every 
city.

When my auto industry is rolling, I borrow some more and build a computer 
industry, and I sell desktops, notebooks, palms, and printers with a 
computer store in each city. I also look at costs wherever I'm producing 
goods in one location and shipping to other cities, and if the shipping cost 
per finished good is too high, I consider localizing my industry.

Here I run out of investment ideas and get lazy micromanaging my sprawling 
empire, so at this stage I just pay down debt and let my net worth increase 
by over $100M per year. My stock price has grown to $2000-$5000 by now, so 
if I wanted, I could wipe out the debt with a small share issue, but I 
usually don't. I also build some mansions for my billionaire character. 
Usually I've accomplished all my goals by year 15.
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