The Stock Analyst and the Wall Street Broker

For my students in Finance 🙂 :

One day, a stock analyst and a Wall Street broker went to the horses races.

The broker suggested to bet USD10,000 on a horse.

The analyst was skeptical, saying that he wanted first to understand the rules, to look on horses, see if any winning patterns occur etc…

The broker whispered that he knew a secret algorithm for the success, but he could not convince the analyst.

"You are too theoretical," he said to the analyst and bet on a horse.

Surely, that horse came first bringing him a lot of money.

Triumphantly, he exclaimed: "I told you, I knew the secret!"

"What is your secret?" the analyst asked.

"It is rather easy. I have two kids, three and five year old. I sum up their ages and I bet on number nine."

"But, three and five is eight," the analyst protested.

"I told you, you are too theoretical!" the broker replied…

"Haven’t I just shown experimentally that my calculation is correct?!"



Mots clés Technorati : ,

11 Responses

  1. How appropriate that you tell this joke on the day that the weather turns… *hao leng*. 😉

  2. don’t feel it’s “hao leng”
    it’s so true and bitter… that’s why it’s funny

  3. @ Chaon: Maybe on purpose? 😉

    @ Jo: Thank you 🙂

  4. Honestly, I think I would laugh like crazy at that joke 10 years ago. Just another sign that I’ve been in Taiwan too long.

  5. Then the stock analyst ran 5 and 3 through many probabilistic risk-return models, and finally proved that 5 and 3 made 9. So he felt better, and started betting too. So theoretically and experimentally, everything was OK, and everyone bet on number 9..

    Except the horse didn’t know that. It fell before the finish line. 🙂


    Quirky Indian

  6. @ Quirky: you are right… and it took him 1 year to complete his research.
    But one variable of his model was missing… The fact that the broker became father again…
    So after one year, we have the new following figures: 6, 4 and 1 and as you must know, we can empirically prove that 6 and 4 and 1 make 12.
    As you watched the race, you could not miss the fact that the horse #12 won…

  7. @ Chaon: in fact the post was more for my students because a while ago the topic of one lecture involved theoretical and empirical researches.

    About staying too long in Taiwan… yes, there are some signs such as believing that Hsiaohsing Wine tastes good or stopping at a 7-11 to only buy tea eggs.

    Oh wait! I like tea eggs… But I still don’t like the mentioned wine…
    So I am still safe…


  8. fvarga, how can you not like Hsiaohsing drunken chicken???!!!
    it’s the best chicken ever!
    on the other hand, i wouldn’t drink the wine either
    nonetheless, i have been in Taiwan since…
    i was born

  9. Jo, drunken chicken? And then you eat it like that? You will have a lot of problems with animal foundations all around the world 😛
    But I will keep it secret, don’t worry!

  10. @ Jo:
    oh… that’s the drunken chicken… I didn’t know that was its name. Yes, you are right, it’s very good. I like it!

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