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>> If 100 million people flipped 20 coins, 95 would get 20 heads If they were starting out with $2 million and betting it on a coin flip, they would owe 37% in
by rufus_foreman 3y ago
>> If 100 million people flipped 20 coins, 95 would get 20 heads
If they were starting out with $2 million and betting it on a coin flip, they would owe 37% income tax on the winnings of each flip.
And try finding someone to bet you $1 trillion on a coin flip.
Charlie Munger's strategy was not to start out with $2 million and bet it with a 0.0001% chance of winning $2 trillion and a 99.9999% chance of losing it all.
Some people invest money out of each paycheck, study how to best allocate that money between the investment options available to them, do that for many decades, and become millionaires. Some people buy a $2 lottery ticket and become millionaires that day. They both just got lucky, am I right?