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Unfortunately, the math is true. Its the same for student loans. Who is going to lend an 18 year old 150,000 to buy a lottery ticket? Nobody. If somebody is
by 001sky 13y ago
Unfortunately, the math is true.
Its the same for student loans. Who is going to lend an 18 year old 150,000 to buy a lottery ticket?
Nobody.
If somebody is going to lend you 150k to buy a lottery ticket should you buy it?
Interesting question. All lottery tickets are negagtive NPV. But they sell well to poor people. So, if you need 150K for college, your probabably pre-disposed to buy negative NPV lottery tickets.
And thus, the availability of capital distorts asset values.
- vinceguidry 13y agoIf I had $150K to invest in only lottery tickets, I'd buy wholesale and resell at a discount. That's how you make money in the lottery.
- 001sky 13y agoLike the abstract approach. But if you get 'wholesale pricing', the ticket is worth more to own, no? you'd then lose money on the sale. AFIK lottery tickets are only sold on comission, for this reason. If you could get the govt to sell you the tickets at a discount (lobbying.ribels), that would be an interesting investment fund, indeed.
- vinceguidry 13y ago> But if you get 'wholesale pricing', the ticket is worth more to own, no? Not necessarily. You have to line up a whole lot of factors to increase the odds enough so that the tickets' worth get anywhere near face value, and when you kick in taxes, forget it.