Thoughts on Risky Play
I'm looking for thoughtful advice for the situation described below. For older people in this forum, I'm NOT looking for moralistic advice. If you are trying to convince me of something, please provide analytical NOT moralistic suggestions:
I've recently been accepted with a significant scholarship to a top US MBA program (think Wharton/Columbia/Booth).
I'm fortunate enough to have my family pay for my full tuition. However, they are not aware of my scholarship.
I was thinking of investing my family proceeds + getting a full student loan ($~300-400k total) and reinvesting them in the stock market (small cap).
I know it seems crazy, but I'm sure greedy monkeys in this forum will agree that this play can turn out pretty well if things go right (Full repayment back to my parents and loan + personal NW of 250-500k). Worst case scenario, I have to repay back the loan completely . Obviously, my parents can never know what I did if the worst case scenario materializes.
Pretty sure that's fraud and the lender can sue you if you suddenly can't pay it back and they discover you didn't use your loan to pay for school.
it’s practically impossible for them to know.
By all means then, do it and report back
on top of this you should max lever your position using the funds from your parents. if you are all in then might as well go to the max.
Downside is worse than upside, I wouldn't do it
Personally this doesn't make sense to do with the loan. Why not just invest your family's proceeds alone minus the different that your scholarship doesnt cover? This is still quite lucrative with minimal downside.
what gives you the confidence that you can generate high returns in risky small cap equities? do you have a track record of doing so or a specific thesis?
I was ranked #2 in the Guitar Hero 3 leaderboard.
what the fuck is the spread? 2-3% for that risk.
Would bet it all on one biotech company. Not worth the risk for 2-3% spread
holy fuck ur betting on 300-400k on biotech which typically has binary outcomes with clinical trials. Unless you have some edge on this company might as well hit the casino
Asymmetric downside type play
what's the biotech play?
PM me
PM me
Why do this for a bet on a single name? If you have this much conviction, or at least some perceived edge on the outcome of this biotech trade, why not just buy options?
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