Promises outrun ships
Training 1455 minutesbubble of 1720
Trading rights look vast on paper, but actual trade is limited. A trading company’s shares soar and crash in 1720. In a practice scene, you assess a $300 investment pitch.
Training goal: Separate a growth story from evidence
▶ Play this trainingSituation
1. The pitch shows prominent partners and a huge market map. It gives no sales figures.
- Ask for sales and costs
- Invest $300 because of the partners
- Divide the market by investor count
2. The practice statement shows $900 sales and $850 costs. The pitch calls all $900 profit.
- Accept $900 as profit
- Treat $850 as profit
- Calculate the $50 remainder
3. The documents promise profit sharing but specify no share, reporting schedule or exit process.
- Ask for a verbal exit promise
- Wait for clear terms before paying
- Pay to secure a place
4. The project sends accounts and a contract. Some costs remain unclear and the deadline is today.
- Skip entry if checks are incomplete
- Invest because documents arrived
- Assume every young business is a scam
What you will learn
- A large market is not sales
- Revenue differs from profit
- Know your rights before paying
Your real-life step
Find the income source and exit terms in one investment pitch.
Questions and answers
What does the bubble of 1720 illustrate?
Prices can run far ahead of business activity. The example does not predict the next crash date.
Why is revenue not profit?
Profit deducts the relevant costs from revenue.
Do documents guarantee reliability?
No. Check content, origin and consistency with actual operations.
More trainings in this module
- A flower with no buyer
- Useful rails, uncertain returns
- New coins, waiting customers
- Closed doors, existing balances
- Bigger pay, a smaller basket
- Fuel rises, routes change
Numbers are illustrative. A game, not financial advice.