I mean if I ever write a book it will be called: WhySmart People Do Dumb Things.
My partner says it should be autobiographical. Butthis might be an interesting illustration.
They are perfectly decent guys. I respect them and they helped me out when I had problems atSalomon.
They are not bad people at all.
But to make money they didn’t have and they didn’t need, they risked what they did have anddid need,
and that’s foolish, that’s excessive foolish, and don’t answer me it related with IQs.
If you risk something that is important to you for something that is unimportant to you, it justdoes not make any sense.
I don't care whether the odds you are 100 to 1 succeed or 1000 to 1 you succeed.
If you hand me a gun with a thousand chambers or a million chambers and a bullet with onechamber,
you said put it up on your temple and how much do you want to be paid the pull one.
I'm not going to pull, you know you can add anything you want, it doesn’t do anything for meon the upside and I think the downside is fairly clear.
So I am not interested in that kind of the game.
And yet people do it financially without thinking about it very much.
There was a great book, wasn’t it a great book? The great title? There is a lousy book which iswith a great title, by Walter Gutman. The title was: You Only Have to Get Rich Once.
Now that seems pretty fundamental, doesn’t it?
What if you’ve got 100 million at the start of the year and you are gonna make 10% if you areunleveraged and 20% if you are leveraged 99 times out if a 100,
but the differences that made at the end of the year, you have got 110 million or 120 million.Itmakes absolutely no difference at all.
I mean if you die at the end of the year, you know the guy who writes up the story may make atypo, he may said a hundred and ten even though you have a hundred and twenty.
You have gained nothing at all. So it makes absolutely no difference.
It makes no difference to your family. It makes no difference to anything.
And yet, the downside, especially managing on other people’s money, it not only losing all yourmoney,but it is disgrace, humiliation and facing friends whose money you have lost, right?
I just can not imagine, and equation.Does it make sense for?