Gambling Story

I haven't taken the time to fact-check this story, but even if it's not true, it's still a short, entertaining story.

Quote: smoothgrh

I haven't taken the time to fact-check this story, but even if it's not true, it's still a short, entertaining story.

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Mr. Smith has told that story on many occasions, and it is used in business school classes

Quote: billryan

Mr. Smith has told that story on many occasions, and it is used in business school classes
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I guess the lesson is titled "don't try doing it this way"

I have heard the bit about betting the last $5000 in Vegas, but I doubt the "all or nothing" bet is true. Also, it is not clear if the company would have gone bankrupt had he lost the $5000, or if he had not even gambled with it in the first place.

Quote: odiousgambit

Quote: billryan

Mr. Smith has told that story on many occasions, and it is used in business school classes
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I guess the lesson is titled "don't try doing it this way"
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No, the lesson is that sometimes you have to go all in on something with no guarantee of success. I remember my teacher discussing giant leaps of faith and that you can't cross a deep chasm taking baby steps.

Bill Gross, who started PIMCO, was a full-time blackjack player in Las Vegas for several years and traded his bankroll for startup money.
He says being a BJ player showed him the advantages of taking multiple small risks and avoiding high-risk situations. He thought he would use his business degree to take advantage of Las Vegas, but instead, he credits Las Vegas with helping him take advantage of Wall Street.