Investment Lesson from the Monopoly Board Game

Investment Lesson from the Monopoly Board Game

March 06, 2023

I don't know about you. But, growing up, I loved playing Monopoly. However, after I started investing, I realized it taught valuable investment planning lessons. For example, in Monopoly, it's generally advantageous to hold onto properties rather than sell them because players can continue to collect rent on them. The same principle applies in holding onto long-term investments such as stocks or rental properties in real life.

Here's how you can apply the lesson of not selling properties in Monopoly to real-life investing:

Focus on long-term investments

Instead of trying to make quick profits by constantly buying and selling, consider holding on for the long term.

Diversify your portfolio

Diversifying your portfolio could reduce risk and increase stability. Consider investing in a mix of stocks, corporate / treasury bonds, and real estate to provide a diverse range of investment options.


Avoid emotional decisions

It can be tempting to sell investments during market downturns, but this can often result in selling low and missing out on potential future gains. It's essential to have a well-thought-out investment strategy and stick to it, even during market fluctuations.

By following these principles, you can apply the lessons learned from playing Monopoly to real-life investing which may increase your chances of success.

 

Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual All investing involves risk including loss of principal. No strategy assures success or protects against loss.

 

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk