Brett Arends’s ROI: No, at $1.9 billion the Powerball still isn’t a great deal

by | Nov 7, 2022 | Stock Market

Moe, Larry and Curly’s latest brilliant idea to retire in luxury is to buy as many Powerball tickets as they can ahead of tonight’s drawing. “Look,” says Moe, as he explains the theory to me over a coffee. “The jackpot’s up to $1.9 billion, right?” “OK,” I say. 

“And each ticket gives you a 1 in 292 million chance of winning?” he adds. I agree that’s what the website says. Read: When is the next Powerball drawing, and what are the odds of winning $1.9 billion? “So do the math!” says Larry, butting in. “A 1 in 292 million chance of winning $1.9 billion should be worth $6.50, right?” I say I got his math. If you divide $1.9 billion by 292 million you get $6.50. “But a ticket only costs you $2,” says Curly. “So you’re making a profit! A ticket costs you less than a third of what it’s worth!” OK, I say. But so what? That’s a profit of $4. You’re not going to retire on $4. “No,” says Moe impatiently. “We’re not going to buy one ticket. We’re going to buy hundreds. Thousands!” Larry adds, “If only we knew a hedge-fund manager, we’d have it made!” Why, I ask? Want some real retirement advice? Read MarketWatch Retirement “Simple,” he replies. “We’d buy 292 million tickets. One for each poss …

Article Attribution | Read More at Article Source

Share This