So, I already know that this goes against some investing principles, but let me finish my thought process.
The price of the NGB (National Bank of Greece) is down to .30.
At .30 a share the market cap is $2.278 B
The total assets that NGB owns is valued at $88.4 B
My thinking is that: Just in total assets owned the NGB is WAAAAAAAAAAY above its market cap.
Now this is where I think my thought process may be flawed. If NGB was ever to sell or shut down or whatever. They would still have 88.4 billion dollars worth of assets that they can sell to recoup their losses. Meaning that even if the NGB was to close their door. I would still recoup my losses on assets sold in the process. AKA, if someone buys the NGB then it would have to be valued above the 2.278 B market cap.
So, knowing that any money that I invest now will, unless there is a massive catastrophic event like Greece gets annexed by Russia or something. I will always own those shares. They will never go away.
If that is true, then I can safely hold NGB for a long period of time.
If I put $1,000, which is what I am thinking of investing, into NGB and it sits there for 10 years. I would have lost out on ~10% per year if I had just put it into an IRA/Vanguard 500.
Even if I put 1,000 into Vanguard 500 my average gains would be ~100% over those 10 years. AKA, I would double my money and be sitting at 2,000 after 10 years.
If I put 1,000 into NGB I have potential earnings of up to $330,000. Based on their max historical price per share.
So, my thinking is that I am risking $2,000 for a chance to win $330,000 max. Even if my bet fails I can sell and potentially break even. At that point I would have lost out on $1,000 of potential earnings. In the end that $1,000 isn't going to make a difference in my life, but $330,000 will.
Minimal risk with potential insane upside.
Submitted November 15, 2017 at 11:49AM by kingdomart http://ift.tt/2A06Joh
