Money Stuff: The Podcast Money Failed!: Death bets, Paramount and Archegos
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May 3, 2024 Katie and Matt dive into the world of 'death bets' and the ethics surrounding life insurance investments. They tackle the complex merger scenario involving Paramount, exploring shareholder dynamics and corporate control. The rise and fall of Bill Wang from Archegos Capital highlights the risks of concentrated investments. They also discuss dental professionals being prime targets for financial scams, bringing to light the quirks of market manipulation and the humorous side of finance along the way.
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Apollo's Death Bets
- Apollo, invested in life insurance policies, faced a lawsuit.
- A woman's estate successfully sued after her death, claiming Apollo shouldn't receive the payout.
Insurance vs. Bets
- Insurance is meant for personal reasons, like protecting families, not as bets.
- Financial investors exploit policies by rationally calculating expected values and paying premiums strategically.
Uncorrelated Returns
- Investors find life insurance appealing due to its uncorrelated returns.
- However, some are hesitant due to ethical concerns about profiting from death.