Replies to post #813 on Cavico Corp (fka CAVO)

[Maddog]

Comfort level or experience?

I think experience leads to a more complete understanding and acknowledgement of risks. Risks affect an investors comfort level. Playing to pinks is fun but it is just like playing the lottery. You can convince yourself you are going to win this time but you cannot control the outcome and the likelyhood of success is very slim. It is a gamble. Those that refuse to accept this fact (and there are some here that fall into this catagory) will move too much money into this play and can be hurt very bad. IMO, Anyone that has more than 5% of there money in pinks and more than 10% in otcbb micros ought to stick with the lottery.

From Motley Fool

According to the survey of 1,000 adult Americans, 21% agree with the statement that "winning the lottery represents the most practical way [for them personally] to accumulate several hundred thousand dollars." That's great news for lottery operators, but pretty depressing news for our nation, our educational system, and most of all, for the folks who hold this sad notion.

We all know that the chance of winning a lottery is just 1 in 80 million or so -- or we know that in theory. But too many people take the "80 million" as a given, and therefore not worth thinking about. They dream of the "1" and just hope against hope. Problem is, there is no hope.

I mean that quite literally. No hope. None at all.

Consider: On average and over time, for every $1 spent on a lottery ticket, a buyer can expect to receive approximately $0.44 back in "winnings." Now say you're a happy-go-lucky rich guy with $10,000 to blow on the lottery. Say you want to "invest" that money in lottery tickets and keep on "investing" the proceeds of your bets in even more lottery tickets. How long do you think you could keep this game rolling?

Answer: If you buy $10,000 worth of $1 lottery tickets on Day 1, then statistically speaking, you'll have $4,400 left to spend on Day 2. Do that, and by Day 3, you're down to $1,936. Keep going, and by the end of the week, you've got $31.93 left to your name. Five more days and you're all washed up -- just $0.53 in your pocket and too poor to buy another ticket.