Lottery tickets are easily available, cheap and offer a great potential ROI. And yet, no rational investor would think of them as a great investment.
Why then, does the hunt for the potential multi-bagger small cap seem to catch our investment fancy? No one seems to be immune from them - see Cravatex for a classic example.
These lotteries are enticing because they create a false impression of value for money and obscure the obscenely low probabilities. Anecdotal stories of people winning the lottery captures our imagination, and drives the pursuit of the next great small-cap multi bagger.
Why then, does the hunt for the potential multi-bagger small cap seem to catch our investment fancy? No one seems to be immune from them - see Cravatex for a classic example.
These lotteries are enticing because they create a false impression of value for money and obscure the obscenely low probabilities. Anecdotal stories of people winning the lottery captures our imagination, and drives the pursuit of the next great small-cap multi bagger.
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