Have you thought of the following
Okay, the winning odd is 14 million to 1 in winning lottery.
How often does it have more than 2 winners? If you have 14 million dollars, you will have a sure win situation, just buy all the tickets. Plus, the jack pot will be more afterward, and you may get 2nd/3rd prize as well
Of course, there is a chance of sharing your fortune with others. but that is a win win situtation.. what do you think if you are a rich person.... (NO need to invest on stock and bonds)
2006-09-27 05:06:34 · 9 answers · asked by mystery t 4 in Business & Finance ➔ Investing
WOW never thought of that why don't you do that and tell us how that works out for you.
2006-09-27 05:10:09 · answer #1 · answered by butterflyaht1 3 · 0⤊ 0⤋
I thought I read a story in Frank Partnoy's book "Infectious Greed" about a actual person who tried to do this by using a complex statistical model he routinely spent tens of thousands on lottery tickets and did have some winnings but he eventually went broke after a year or so because there is still luck involved and he just became unlucky. The point about the taxes is very important, you won't really bring home the full amount and most lotteries pay in an annuity (yearly or monthly payments for 20 years) so it is harder to access the money.
Partnoy's book also mentions that due to the way the stock market works and the odds of any stock going up or down in value if you did just a very small amount of research and picked 24 or more stocks from at least 3 different industry groups then statistically you have an almost guaranteed chance to either break even or make money while even if you invested thousands in the lottery you still have only vague chances of winning and once the numbers are drawn your tickets are worthless. Even if your stocks go down a little they are still worth something and there is always a chance the value could go back up.
2006-09-27 05:53:10 · answer #2 · answered by Matt M 5 · 0⤊ 0⤋
I do not think that the prize is 14 million. The price of the ticket * the odds to win has to be more than the value of the prize. Otherwise it's a loosing business for the lottery company, regardless if one person buys the tickets, or if all the tickets are purchased by different individuals.
2006-09-27 05:20:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋
To ensure a win, you can't buy "all the tickets", you must buy each and every combination possible (a heck of lot more than 14 million). Only when the lottery reaches a high enough figure does it make any since (it never has by the way, especially when you consider the cash payout is less than 50%).
2006-09-27 05:17:17 · answer #4 · answered by Irish Eyes 4 · 0⤊ 0⤋
i'm not sure the lotto is much of an investment. it's more of a tax on people who are bad at math. but, if you really want to dump 14 million into it and have a slim chance of at least breaking even, then more power to you. i of course would just buy 14 million dollars in classic cars. i'm a car guy and into the buying and resale aspects of the hobby as well. enjoy 'em for a couple years and if you bought them right and sold them right, you might walk away with 20 mil. it's hard to lose money on cars that appreciate in value over time. my charger, for example, bought it for 29 grand a year and a half ago, similar cars with similar options are stretching into the 50-60 thousand dollar range. that's where i'd put my money, not in chance dealings.
2006-09-27 05:19:41 · answer #5 · answered by Twsti07 2 · 0⤊ 0⤋
okay for that to work not only do you have to be the only winner but about 60% of lottery winnings get taxed and if you take a lump sum it is normally only half of the jackpot, I.E. 120 million if you take in annually, only about $65 million if you take a lump sum
so not a great investment
2006-09-27 05:21:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Typical lottery payout is $.50 on the dollar. The odds are stacked against you no matter how much money you have.
2006-09-27 06:03:45 · answer #7 · answered by howardrourke 3 · 0⤊ 0⤋
Assuming your figures are correct, the only problem I see is you would need to buy all the tickets before anyone else buy any.
2006-09-27 05:14:52 · answer #8 · answered by IT Pro 6 · 0⤊ 0⤋
The odds are stacked against you. The situation is statistically probable, but that doesnt mean it is a sure fire guarantee.
2006-09-27 05:17:45 · answer #9 · answered by Vinni and beer 7 · 0⤊ 0⤋