In February of 1992, an Australian syndicate of 2,500 ‘investors’ attempted to win the Virginia Lottery by buying every number combination. The jackpot had grown to $27 million and while that seems like peanuts compared to an ordinary Powerball or Mega Millions jackpot, back then it was the largest potential payout the state had ever seen.
To the Aussies, it seemed like a good risk because the odds of winning were only 1 in 7,000,000. As long as there were less than 4 winning tickets, they’d make a profit and if they wound up with the only winning ticket, they would almost quadruple their money. [Read more…] about Is the Stock Market a Lottery?