Ep. 1049: Wide Thinking with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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Is Buying a Lottery Ticket a Good Investment?
Most people are unlikely to be worth a hundred million dollars starting from zero, or pretty much zero, in one unless they buy a lottary ticket. But if you invest in an extremely concentrated portfolio, so maybe just buying one or two really risky text stocks, then yes, there's an outside chance that in 30 years time that portfolio will be worth a 100 million dollars. If some one wants to get rich, then then yet, there is a more sensible way of doing it which is to put perhaps two thirds of your money in bonds and one third in stocks. And then what you do is you then leverage that portfolio. You buy it using margin and a brokerage account, or you
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