Monday, November 6, 2006

Investing Gyaan in practice

Though it's a joke, it teaches too! Wanna find more jokes

A very successful investor was ready to pass on his $billion fortune to his three sons. However, he had always feared that his sons would be spoiled and not have any ambition other than party all the time. After much thought he decided he would split his fortune between his sons but not evenly. He devised a competition for them where the winner would be given 75% of his fortune, the second place finisher 20% and the one who finished last would be given only 5%.

The rules were simple. Each son would be given $500,000 and they would have 3 months to invest it and they would be ranked at the end of the competition by how high their portfolio grew. They were also given $200,000 each that they could only use as portfolio expenditures. He wanted them to learn how to make money but learn how one would utilize resources and work with others effectively to achieve goals.

The first son used his $200,000 by hiring the best scholars around. $50,000 for an Economist with a PHD, $50,000 for a mathematician and $100,00 a Business professor from Harvard. The first son's portfolio grew to $750,000.

The second son used his $200,000 to hire some of the brightest minds on Wallstreet. $100,000 for 2 successful Fund managers and a $100,000 for an analyst. The second son's portfolio grew to $1,000,000.

The youngest son began spending the $200,000 throwing weekend parties, taking friends to concerts, and going on trips. His portfolio grew to $10,000,000!!
"Wow son how did you do that?"
"Well dad. I spent $10,000 for the land.$50 for the rocks.$100 for the gold spray paint.$10,000 for the helicopter.$10,000 for the ex-geologist.$100,000 for the shell.
and the rest on parties and concerts for the brokers, analysts and writers.
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