If I am Paul the Octopus ….
We all know the story about the octopus who predicted the winners of all 8 matches correctly. Even the stunning upset of Germany by Serbia in the group matches.
What if as investors, we can match Paul and go 8 for 8? And each time we double the money.
Let’s start with $1000 and we do a table:
| $1000 | |
| 1st | $2000 |
| 2nd | $4000 |
| 3rd | $8000 |
| 4th | $16,000 |
| 5th | $32,000 |
| 6th | $64,000 |
| 7th | $128,000 |
| 8th | $256,000 |
After the 8th iteration, and the money gained is considerable. A quarter of a million. If you are right two more times, it is a million.
All you have to do is to be right 8 times in a row like Paul. Better yet if you are right 10 times.
So, do you think you can time your purchase/selling of investment such that you get a return that doubles each time? While preventing a loss?
Or like what Peter Lynch and other legendary investors do by finding a few great investments and getting a few multi-baggers.
“Say you pick 5 stocks, and you’ve done all the research you can and you’re sure these are solid companies. Well some of them might go down, but even if 4 of the 5 are losers, if you hit just one 10 or 20 or 200 bagger, it makes up for the rest (a 10 bagger is a stock that increases 10 times in value). Look for 10 baggers, look for quality, and you’ll win out every time.” Peter Lynch
If I had a Paul the Octopus, I’d put the logos of two companies in the tank and ask him to choose. I’d bet a lot of people will buy the shares of the company that it choose.
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