R P S B
Relative Performance
Stock Betting
Members of the DoBetter Club who are successful in betting $200 on which of 2 stocks will do better, by outperforming the price of the other, will receive $380, of which $180 will be profit, net of all fees.
The annualized Internal Rate of Return (IRR) achieved by the winner will depend on the period of the bet. In all cases, the loser will suffer a 100% loss. The annualized IRR achieved by the winners will be extraordinary.
If the betting period is 30 days, the IRR will be 221,231%. If the betting period is 90 days, the IRR will be 1203%. If the betting period is 180 days, the IRR will be 261%. The IRR calculator used is available at www.thecalculatorsite.com/finance/calculators/irr-calculator.php.
Those members betting on whether, for example, Apple shares will outperform Amazon shares in any of the 3 betting periods, will base their bet on their belief or knowledge regarding the companies. Aside from betting on any of the stocks in the SP500 for which the Club will be able to arrange for the necessary counterparty, members will also be able to bet on whether the performance of the stock they select will outperform the SP500 level change or by an agreed percentage of the index, by the end of the betting period.
The DoBetter Club, as a broker, will seek to arrange for bet counterparties and provide payments of winnings on the completion of the betting periods. Members must have in their club accounts funds sufficient to make the number of $200 betting units desired. No credit will be extended and therefore the loss of members will be limited to the amount bet.
The DoBetter Club will be paid a fee of 10% from member’s winnings and no fee will be charged for losing bets. If managed and marketed well the profits earned by the organization operating the DoBetter Club will be enormous.
Arthur Lipper, Chairman arthurlipper@gmail.com
British Far East Holdings Ltd. 858 793 7100 (Pacific)
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