$1 Million Guaranteed or Coin Flip for $1 Billion?

$1M Guaranteed or Coin Flip for $1B?

  • $1M Guaranteed

    Votes: 174 66.7%
  • $1B Coin Flip

    Votes: 87 33.3%

  • Total voters
    261

Sterling Archer

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Why would it never happen? Investing $50M in something with an expected value of $500M and a literally overnight 10x potential return is very attractive.

And yeah that's a really good point. The marketing and sponsorship opportunities of making the coin flip into an event would easily generate over $1M.
It is. Not attractive enough to net a $50M loss though IMO. From a wealth management/financial analyst viewpoint that is the angle you use to get a client to invest in that opportunity but you'd be hard pressed to find a VP that would sign off on that with their own assets. They look at potential losses with a more astute eye than potential gains. So I wont say never, but im comfortable with saying almost never.
 

lib123

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It is. Not attractive enough to net a $50M loss though IMO. From a wealth management/financial analyst viewpoint that is the angle you use to get a client to invest in that opportunity but you'd be hard pressed to find a VP that would sign off on that with their own assets. They look at potential losses with a more astute eye than potential gains. So I wont say never, but im comfortable with saying almost never.

VC funds take way bigger risks with less certain returns that don’t come to fruition for 5+ years. If you’re managing $1B+, risking $50M for a 50% shot at $500M overnight is a great return. A big enough diversified portfolio can stomach the potential (tax-deductible) loss.
 
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xXOGLEGENDXx

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A million isn't as much as yall think.

A billion is life changing. No more working, buy and drive whatever car you want, live wherever you want. Access to exotic beautiful women. Eat whatever you want whenever. etc.

The coin flip is way more valuable. Odds are 50 /50.

:what:

I pray to God that some of you brehs are not real life financial advisors for people.
 

lib123

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:what:

I pray to God that some of you brehs are not real life financial advisors for people.

Again, it all depends on the individual situation. If you’re a financial advisor to someone really young or already financially secure, why wouldn’t you tell them to flip the coin? And ironically in this scenario a financial advisor may not be the best person to ask because they’re more likely to tell people who aren’t financially secure to flip the coin since the advisor could benefit immensely from managing $1 billion.
 

xXOGLEGENDXx

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Again, it all depends on the individual situation. If you’re a financial advisor to someone really young or already financially secure, why wouldn’t you tell them to flip the coin?

Uh... Maybe because $1M is life changing money to majority of the population regardless of what the internet tells you.
 

lib123

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Uh... Maybe because $1M is life changing money to majority of the population regardless of what the internet tells you.

Never said it wasn’t. But again, for some people the risk is definitely worth the potential reward. Especially if you’re young.
 
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