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Discuss Latest POF Blog Post: Unlimited Upside

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  • Discuss Latest POF Blog Post: Unlimited Upside

    Decisions have outcomes. Some of our decisions have well-known outcomes with limited downside and limited upside. Other choices we make ... Read more

    Click here to view the article!
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

  • #2
    Just because you do not recognize the downside does not mean it doesn't exist.

    Throwing 10k at a startup might seem like you only have a 10 k risk but since you have a high chance of failing and losing most if not all of it you are probably going to need to try and invest in several before you hit a winner.

    Not to mention the opportunity cost.

    Comment


    • #3
      Buying call options has defined, limited downside and unlimited upside. Should we all be trading options?

      Comment


      • #4
        Yeah, this analogy falls flat for me.

        Especially looking at Apple and the stock market. The same "unlimited upside, limited downside" could be said for virtually any stock. Any time you buy an individual stock, your max loss is limited to your total investment going to zero. That doesn't mean I'd recommend you go buy any individual stock.

        Seems to be very much a market timing kinda post

        Comment


        • #5
          Well I am an example of someone who has held on to Apple since 2008. It has been a great decision. Occasionally even the average get lucky.

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          • #6
            This is something that seems like a good idea in your head but then you put it on paper and should probably just hit 'delete'. There is no thing as unlimited upside just as there is no unlimited downside.

            Comment


            • #7
              actually I thought the article was great, I'm going to the quickie mart right now to buy more powerball tickets and I'm gonna finally let my 12 year old start that youtube channel shes been wanting to

              Comment


              • #8
                Originally posted by jacoavlu View Post
                actually I thought the article was great, I'm going to the quickie mart right now to buy more powerball tickets and I'm gonna finally let my 12 year old start that youtube channel shes been wanting to
                Lotto was the first thing that came to my mind as well. For a buck you have the potential to win millions!!! Just a buck!

                Comment


                • #9
                  Originally posted by Lordosis View Post
                  Just because you do not recognize the downside does not mean it doesn't exist.

                  Throwing 10k at a startup might seem like you only have a 10 k risk but since you have a high chance of failing and losing most if not all of it you are probably going to need to try and invest in several before you hit a winner.

                  Not to mention the opportunity cost.
                  The irony is that the article itself proved his point.

                  He wrote and posted it : If no one read it all he wasted was some time. That was the downside.

                  But the upside was the buzz created by the title caused many people to read it and it had more page views and hence he got more ad dollars than he otherwise would have.

                  Smart dude.

                  Comment


                  • #10
                    Originally posted by Kamban View Post

                    The irony is that the article itself proved his point.

                    He wrote and posted it : If no one read it all he wasted was some time. That was the downside.

                    But the upside was the buzz created by the title caused many people to read it and it had more page views and hence he got more ad dollars than he otherwise would have.

                    Smart dude.
                    thats short term thinking. the premise was reasonable, but the content didnt flush it out. so now i'm less inclined to be interest content from this person and certainly wouldn't go subscribe to his/her blog

                    Comment


                    • #11
                      Originally posted by jacoavlu View Post

                      thats short term thinking. the premise was reasonable, but the content didnt flush it out. so now i'm less inclined to be interest content from this person and certainly wouldn't go subscribe to his/her blog
                      You think like me when T-Mobile did not give me BOGO phone as existing customer and yet handed it to new customers and I vowed to leave them for the slight they caused.

                      But their thinking ( and maybe POF too) is - I made my money off him and if he leaves, so what. There is a sucker born every minute who will replace him.

                      Comment


                      • #12
                        there is a small but growing subset of the "content" world of blogs and podcasts that are moving toward a subscription model instead of an ad supported model. and its easy to see some of the benefits of such a system.

                        this becomes feasible when micropayments are possible. there are now podcasts that allow you to make micropayments as you listen, and you can even make little "boost" payments if you hear something you like - think of watching the debates where they have the temperature gauge that swings back and forth as someone is talking.

                        not many people want to pay a monthly sub fee to read a blog, but if it were a matter of clicking a button and paying a dime to read an article that didn't have a whole bunch of ads that im not interested in, well that changes things.

                        Comment


                        • #13
                          I think the drop off would be tremendous if blogs charged anything even pennies.

                          How many times has somebody posted a New York times or similar article that requires you either to log in or pay a couple of dollars and it dissues a whole forum of wealthy physicians from purchasing the article?

                          When I first found the white coat investor I continued reading it because it was free so therefore no harm to me. It made sense. It was simple and answered the questions I was looking for. Unfortunately if it would have cost even a couple of bucks I probably would have moved on to somebody else which in hindsight would have been a terrible mistake but knowing myself I would have made it.

                          For something I am already paying for paying a couple of dollars more to get the ad free version like Hulu live for instance is worth it. Not really for me but then I do not have to deal with my kids complaining every 5 minutes when one minute of commercials play. Money well spent!

                          Comment


                          • #14
                            Originally posted by Lordosis View Post
                            I think the drop off would be tremendous if blogs charged anything even pennies.

                            How many times has somebody posted a New York times or similar article that requires you either to log in or pay a couple of dollars and it dissues a whole forum of wealthy physicians from purchasing the article?

                            When I first found the white coat investor I continued reading it because it was free so therefore no harm to me. It made sense. It was simple and answered the questions I was looking for. Unfortunately if it would have cost even a couple of bucks I probably would have moved on to somebody else which in hindsight would have been a terrible mistake but knowing myself I would have made it.

                            For something I am already paying for paying a couple of dollars more to get the ad free version like Hulu live for instance is worth it. Not really for me but then I do not have to deal with my kids complaining every 5 minutes when one minute of commercials play. Money well spent!
                            yeah it has to be frictionless. paywall articles dont get my money either. but if it were two seconds and a nickel it would be different. i would pay a small amount for ad free content here. im sure that none of the advertisers here have ever got any of my money

                            the other thing is the direct funding of content creates different incentives. plenty of folks here get annoyed by what seems to be a lot of content around RE syndicates etc. but Jims gotta pay the bills right?

                            Comment


                            • #15
                              Originally posted by jacoavlu View Post
                              there is a small but growing subset of the "content" world of blogs and podcasts that are moving toward a subscription model instead of an ad supported model. and its easy to see some of the benefits of such a system.

                              this becomes feasible when micropayments are possible. there are now podcasts that allow you to make micropayments as you listen, and you can even make little "boost" payments if you hear something you like - think of watching the debates where they have the temperature gauge that swings back and forth as someone is talking.

                              not many people want to pay a monthly sub fee to read a blog, but if it were a matter of clicking a button and paying a dime to read an article that didn't have a whole bunch of ads that im not interested in, well that changes things.
                              Why would you need to pay for an article, when there are numerous ad blockers and paywall-bypassing sites available?

                              Comment

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