Tuesday, October 30, 2007

The Lucky Penny Theory of Investing.

1. Get 1024 pennies.

2. Every morning, ask them "Will the market go UP (Heads) or DOWN (Tails)" and flip them all.

3. If the market goes UP, discard the Tails; If the market goes DOWN, discard the Heads. (On average, you will discard half your pennies).

4. The next day, if you have more than 1 penny left, go back to step 2.

5. At this point, you have 1 penny left. This penny has SUCCESSFULLY predicted something like 10 DAYS of market performance.

This is your LUCKY PENNY! It is clearly more successful than any human at predicting the market!

Give it a salary and a bonus.

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