As a thought experiment, what is the best high-reward gamble that has a decent likelihood of payoff and a low risk of ruin?
Obviously there's a spectrum here, and I'm not sure I have good definitions for "decent payoff" and "low risk of ruin", so let's leave that open to interpretation. But I'll say that lottery and Vegas odds probably don't qualify.
Let's say you want to make a wager in the hopes of earning a return of 4x+ within a 5 year timeframe (modify these as you wish, but the idea is significantly better than a standard boglehead investment). What's your asset of choice? Single stock? Options? Unmentionable asset? Leveraged stock or fund? Beanie Babies? Why that asset?
Simply a thought experiment. Let's try to avoid the "this is a sign of the top!" comments, please.
Obviously there's a spectrum here, and I'm not sure I have good definitions for "decent payoff" and "low risk of ruin", so let's leave that open to interpretation. But I'll say that lottery and Vegas odds probably don't qualify.
Let's say you want to make a wager in the hopes of earning a return of 4x+ within a 5 year timeframe (modify these as you wish, but the idea is significantly better than a standard boglehead investment). What's your asset of choice? Single stock? Options? Unmentionable asset? Leveraged stock or fund? Beanie Babies? Why that asset?
Simply a thought experiment. Let's try to avoid the "this is a sign of the top!" comments, please.
Statistics: Posted by Gecko10x — Thu Jan 09, 2025 1:17 pm — Replies 18 — Views 514