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Archive for March 10th, 2006

Mega Millions

I blogged previously that the $365 million jackpot that was recently drawn could likely be won by a group of tool and dye workers. I was close. They were meat packers. A web site that discusses multi million dollar lotteries has published a panel of experts’ advice for how to handle the money should one come into it. As you might expect, the recommendations are all over the place. One genius must have been kidding:

Scott Barchus, a CPA and principal for Wealth Advisors in Lake Oswego: "I would probably invest in a few things: international emerging markets, local startups and double-exempt municipal bonds.

"There is tremendous opportunity in Latin America, India, China and other countries in the Far East. What’s hot about the emerging-market countries is the human capital and the natural resources….

"I’d also get into the venture capital market for small companies starting up here, especially in the technology and medical fields. There’s a tremendous amount of startup companies in the Northwest, all looking for startup capital. They often do that in the form of private placements, but in order to participate you have to be an accredited investor (which requires $1 million in assets)….

"Many startups never make it, but in terms of the upside potential, you could see from 15 percent to in excess of 100 percent….

Yes, why waste your time on blue chip stocks or prudently diverse mutual funds when those nice, stable international markets and local startups needing venture capital are available? A meat packer, after all, should have no trouble at all picking the winners, especially with Scott Barchus’ help. No wonder so many of these people end up broke.

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