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THE
RAILROAD TYCOON II ROBBER BARON SITE
RT2 Strategy
All Original Content © 2002 Chrisitan Mueller. Written &
Produced by Chrisitan Mueller
The basic
strategy developed
entirely by Wilson W. Prayitno at mercury@cbn.net.id (the notes are mine, though) The
procedure to be followed can be split into different
steps:
1. Set up a
company with $100K of your own money and as much as
possible of investor money. Try to make as much profit
with it as possible. Copy the way the AI sets up a
company - run several trains between 2 cities to carry as
much passangers and mail as possible. The logic is if the
company makes money stock prices go up. If the stock
rises, so does your purchasing power. Use it to obtain
more stock of your company.
(Note from
the Robber Baron: With this strategy it would be a waste
of money to build sanding towers or repair yards, let
alone watering towers - better save the money for what
comes next. We'll wreck this company anyway, so best do
it thoroughly.)
2. Set your
dividend as high as possible. By the next year, your
stock price should be above the $100 mark. During this
time, always buy as much shares as possible of your
company.
(Note: The
dividend can be raised to its highest level once you have
made maximum profit. Therefor, if you aren't allowed to
raise the dividend, try again later.)
3. In
December of the second year, issue as much bonds as
possible and use them to buy back shares. One important
point to remember is that as you buy back shares, your
purchasing power goes up yet again. Don't forget to get
some for yourself before the year is over. By the end of
this year, your shares should have split.
(Note: If
you still have some (company) money left, use it for what
is described in the next note.. (I just love notes!!))
4. In
January of the third year, pause the game (or, if in a
multiplayer game, sell asap) and start selling and
destroying the company (as explained here). You would end up with $500K- $1,200K
(if you are good) of cash.
(Note:
Alternatively, if the company still has some money you
could buy back more shares but don't buy any yourself.
The share price should rise and one the company is too
poor to buy any more shares, you can sell all with some
more profit)
5. Set up
another company with $400K of your own money and $4,000K
of investor's. Make this company profitable too, so that
you can get a lot of dividend. Use the money left to buy
other companies' shares. Aim to get majority in companies
rather than own a bit here and there. Don't be afraid to
buy on margin.
(Note:
Another option is to make this company your "raileater"
- very useful if you have some idiots who already own the
majority of shares and are therefor immune to our stock
manipulations and takeovers. A detailed discussion of
what a "raileater" does can be found here.) 6. During recession, attempt
to merge. Pretty soon you'll wipe out all other
competitors.
How to ruin
your own company
By Chris "Robber
Baron" Mueller, Webmaster
After sucking the company dry with buying back shares,
issuing bonds like hell and building a totally
unsatisfactory infrastructure, we could leave and take
care of our new company which was financed mainly by the
old one. But we are not finished here, we were not evil
enough. True Robber Barons not only use companies, they
destroy them once they served their purpose. Therefor, we retire the one or two trains we built, and
remove every station and every railroad that is owned by
the company.(Yes, that is precicely what I expect every
competent Robber Baron to do!) In the unlikely
event that the company still has some money left, spend
it on something extremely useless. (i.e. Build and
bulldozer some stations). As one of the last things we do
to make sure the company stays down (so that not even a
genius in train operation can save it) we isse new stock
to the public, which means that it will be impossibe to
obtain more money this way for more than a year. The
money the company gained by this action should be wasted
as described above. We can now resign as chairman and
start to place as much "short sells"as possible
on this poor company which we know has three problems:
1. There is interest to pay for the bonds we issued,
usually around $ 50,000 - $ 100,000 or even more (the
more, the better for us) 2. The company has no income and
3. It won't be able to issue bonds to start building new
railroads because it's rating is somewhere between "D"
and "F" It follows that this company will never
be able to rise again and eventually, will go into
bankruptcy. Too bad. What a pity. It hurts to know that
many other stockholders were ruined because they jumped
on the train at the wrong time and failed to leave it in
time. Maybe you have already kicked out one of your
enemies....
Raileater
- ruining other companies by Chris "Robber Baron"
MuellerYou have just founded a big company with lots of
money and you want to get even more? Here is something
for you, the bane of all peaceful railbuilders - the
Robber Baron's raileater.
So, you
have just build a new track. Perhaps someone already owns
more than 50% of the shares of his company and he is
racing to the top. This in turn means that he is trying
to get ahead of us- naturally, we won't try to build a
larger network than he has, because this is too time
intensive and is too expensive for us. We have enough
money to get some other companies and increase our
railway network. The owner won't neccessarily be happy
that we take his company over, but "wealth is power
and power is wealth", and we don't want to be
friends with people but become rich. In order to do that
you need a majority of the shares, which shouldn't be a
problem since the company in question will hardly be
worth more than your purchasing power. Remember that the
more shares you get of the other company, the more money
you'll get at the merger. Now, merge the raileater with
the company, for the highest price per share possible -
because this'll make you rich enough to get into the
black numbers - and this way you don't have to be afraid
of a recession or something.
Good. Now, you have a decent company. Two things are open
to you: Suck the company dry just as in the beginning or
use it till everyone is beaten. I prefer the latter,
because it hurts the others more....
We can repeat the above procedure until there are only
companies left whose owners have the majority of shares.
Then we have a problem: We can't take over any more
companies (my guess is that you can take over one to
three companies, depending on how well the others are
doing and how many others there are).
Ok, our railroad generates a lot of money (through the
aquired companies) but we can't do anything to hurt the
others. That's what you think. In reality, a real Robber
Baron would also accept losses for his company in order
to ruin another railway. So what do we do? Suppose there
is a major city connected to a rival railroad, which
happens to be close to our railway network - we'll build
a track there. Ah, I know what you're saying "but
he'll get money through my trains entering his network
and his station!" - did I say ANYTHING about
building the track into his station or using his
network??? No, we'll build our own station there, and
then we'll draw off everything in this city. We run
trains between this station with as much freight being
picked up there as possible. You needn't carry anything
there, just make sure there is nothing his trains can
pick up. Now you're saying "but he still survives!".
Of course he does. We are not finished here. We can build
our tracks to every part of his empire, build a station
everywhere where he builds one - and thus crush his
income. It will hurt our company, no doubt about this.
But remember that his company cannot endure as much as
ours can. We have a bigger rail network and better
income, and we don't have someone transporting our
passengers out to someone else's station. Remember that
you shouldn't posess any shares of this poor company.
Maybe when he is going down he'll try to let you take
over. Don't do it. After all, what would it be good for?
That would only get him some more money. Noooooo, that's
far too easy. Perhaps you can even place a few short
sells on the company once you are convinced that it is
crumbling, which will make the stocks fall like an iron
horse.
Much more
could be said about the raileater, but I thing your own
creativity can serve you better. Always consider the
following maxims:
1. The
others are "friendly" railbuilders that just
want to be left alone. Therfor, disturb them where you
can. Connect to stations before he does.
2. Your
company is the biggest of all. If done with skill you can
hurt the others more than the others hurt your company.
3. Be
always open for things that no-one expects you to do.
Audacity is the best way to beat your enemies. (After
all, business is like war, and all measures are allowed
to attain triumph). Stocks
- and the wonderful things that can be done with them
by Chris "Robber
Baron" Mueller Plain and simple: The stock market is
there for you, the Robber Baron. It's paradise. You can
earn money without actually doing something. You can ruin
companies without laying a single track. However, there
are also some harzards, and the one who wants to play the
stock market should have a decent understading of the
basic principles. Let's first focus on stocks: Prices
rise when the company earns a lot of money, and the less
stock there is available, the higher the price. A company
which pays high dividend will also see its stocks rise to
the top. However, if the company is loosing money, the
stock prices will fall. The prices also depend on the
current economic situation: During Recession, you can get
them for next to nothing, while during Boom times you can
get overconfident because you can buy so much stock on
margin. Here is the first trap for the unwary: Buying
stocks like hell is advisable at the beginning, but you
should aim seriously to reduce your personal dept as much
as possible, because you'll go down to hell if a
recession starts and catches you off guard. Once your
purchasing power is negative, you are done for. If, on
the other hand, you have positive money during
recessions, you can get shares so very cheap that one
might start to laugh. If you are in a multiplayer game,
during Recession you can take a look at other player's
finances and if one is dangerously low on purchasing
power, do a lot of short sells on his major companies-
this will make the stock prices fall and in turn reduce
his purchasing power to below zero which will be his ruin.
The downside is that you'll loose some money in this
operation. But you kicked a competitior out of the game
in a very elegant way, and that's worth the price.
Another stock manipulation that is possible is the
following: Sell all shares of your company and stop all
trains. This will make the company go into the red
numbers and at the end of the year, the stocks will fall
like lead. This is your chance to get much stock for a
bargain. This tactic has it's drawbacks, because once you
don't posess the majority of shares, anyone with enough
stocks can assume command of the company or merge with it.
But from my experience, if you don't have any Robber
Barons as enemies but just these megalomanic "big-railnetwork"
- builders, there isn't a problem as they neglect the
stock market. Good, now what can we do if someone has
more stocks of our company than we like him to? One
option is to make the company go to hell. (see "Ruining
your company"
for details) - which might make the foreign stockholder
angry, but then, he might forget to sell his shares in
time. The other, long-term option is to use stock
watering measures. Issue more stock every year, and
immediately buy it. This will reduce his share in your
company slowly but gradually.
There are infinite way of manipulating and using the
stock market for your advantage, so do it! Suggestions
are welcome!
Stocks -
and the wonderful things that can be done with them
by Chris "Robber
Baron" Mueller Plain and simple: The stock market is
there for you, the Robber Baron. It's paradise. You can
earn money without actually doing something. You can ruin
companies without laying a single track. However, there
are also some harzards, and the one who wants to play the
stock market should have a decent understading of the
basic principles. Let's first focus on stocks: Prices
rise when the company earns a lot of money, and the less
stock there is available, the higher the price. A company
which pays high dividend will also see its stocks rise to
the top. However, if the company is loosing money, the
stock prices will fall. The prices also depend on the
current economic situation: During Recession, you can get
them for next to nothing, while during Boom times you can
get overconfident because you can buy so much stock on
margin. Here is the first trap for the unwary: Buying
stocks like hell is advisable at the beginning, but you
should aim seriously to reduce your personal dept as much
as possible, because you'll go down to hell if a
recession starts and catches you off guard. Once your
purchasing power is negative, you are done for. If, on
the other hand, you have positive money during
recessions, you can get shares so very cheap that one
might start to laugh. If you are in a multiplayer game,
during Recession you can take a look at other player's
finances and if one is dangerously low on purchasing
power, do a lot of short sells on his major companies-
this will make the stock prices fall and in turn reduce
his purchasing power to below zero which will be his ruin.
The downside is that you'll loose some money in this
operation. But you kicked a competitior out of the game
in a very elegant way, and that's worth the price.
Another stock manipulation that is possible is the
following: Sell all shares of your company and stop all
trains. This will make the company go into the red
numbers and at the end of the year, the stocks will fall
like lead. This is your chance to get much stock for a
bargain. This tactic has it's drawbacks, because once you
don't posess the majority of shares, anyone with enough
stocks can assume command of the company or merge with it.
But from my experience, if you don't have any Robber
Barons as enemies but just these megalomanic "big-railnetwork"
- builders, there isn't a problem as they neglect the
stock market. Good, now what can we do if someone has
more stocks of our company than we like him to? One
option is to make the company go to hell. (see "Ruining
your company"
for details) - which might make the foreign stockholder
angry, but then, he might forget to sell his shares in
time. The other, long-term option is to use stock
watering measures. Issue more stock every year, and
immediately buy it. This will reduce his share in your
company slowly but gradually.
There are infinite way of manipulating and using the
stock market for your advantage, so do it! Suggestions
are welcome!
Earning
money without actually doing anything
This nice
idea is from Russ Warren,
Saint Paul,MN
What I have found to be successful is simply to set the
other company's revenue numbers at +20% (Note: This is
automatic if you choose the difficulty level "experienced"
- as every competent Robber Baron should) and then
own only the other companies until I take control of one
or more of them, then merge them and pocket the cash.
If
the company is one I want ultimately to own, I start
another company with my $1Million and "the market's"
$3Million or so and buy out the company I want. (Note:
The previous owner might not approve of the takeover, but
then, what can he do?)
I hardly ever actually run the
railroad. I let the shareholders' committee do that.
I will upgrade to add hotels and restaurants and such to
maximize revenues -- again on a
road I want to own.
(Notes are
from the Robber Baron)
Comments from the Robber Baron: Ah, how delightful - earn
money without actually doing anything! The true way of
Robber Barons! Let the others do the hard work, you will
get all the cash - unfortunately, this strategy doesn't
hurt the other players, which is why I would welcome any
suggestion as to how to use the strategy displayed here
while destroying the enemies (which is everyone else).
More
on short sells
This input is from Jim Mapes
Los Angeles, California
(Note from
the Robber Baron: Since there is much more that you can
do with short sells than told in the other sections, here
is something for all of those who want to be cruel to the
end; in other words, for all who want to be Robber Barons.)
First, in
that first month of the 3rd year when you loot and
destroy your original company (see "How
to ruin your company"), turn right around and SHORT-SELL all
the stock of it you can. A sucker is born every
minute, since the company can never recover, the stock
only goes in one direction. After about 1.5 years
it hits a extremely low flatline for a while before
bankruptcy. Unload (buy back) those shares 2-3 K
per month (stop buying soon as it rises and wait for it
to fallback next month to maximize your gains) till they
are gone (or rather you have fullfilled your short sell
orders). Shares you sold high just got bought for
pennies on the dollar, you will practically double the
take from the looting of the railroad you just did.
Number two
is briefed upon as to making stock prices fall like
bricks. The idea is to short sell all you can of a
players company forcing them to sell off stock bought on
margin (for less than they paid). Judge carefully
whether you canbring their purchasing power below zero
selling half the available market shares, you can't sell
them all unfortunately and if you don't force him to sell
you are going to take a hit for around 1-2K per share
when you are forced to buy it back at a minimum.
You want to force the player to sell immediately.
If you force him to sell, now he brings the price down
further in a fire sale. You buy back right after
and since it is cheaper you actually make a few K's in
the process of stripping the overextended player of their
stock.
(Yet
another note from the Robber Baron: I would like to hear
if someone has encountered another Robber Baron in a
multiplayer game and what a battle between two Robber
Barons looks like!)
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