15 ms·
I was following you for a while...but can you explain how this is different than taking out a home equity loan, going $200-300k in debt, and buying lotto ticket
by LeifCarrotson 9y ago
I was following you for a while...but can you explain how this is different than taking out a home equity loan, going $200-300k in debt, and buying lotto tickets for a chance to become a millionare? Aside from the fact that you wouldn't know whether you would or would not have won that lotto.
- kemitche 9y agoThe chance of winning the lotto is much much smaller than the chance of Uber surviving to an IPO with value at/above the fair market value that triggered $300k in AMT.
- gfodor 9y agoYep I was referring specifically to the idea of Uber options converting to stock worth some reasonable price. The idea of Uber completely imploding to $0 seems rather far fetched, but it depends on strike price, etc.
- ubernostrum 9y agoThere have been cases of lotteries where the expected value of a ticket, though low, was still sometimes positive. And there have absolutely been cases of people who figured that out and organized investors to buy large quantities of tickets for the return.