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What is ' a seven-to-five-flip'? Buffett said that while he is risk averse, we would be surprised at how much he might put on a seven-to-five flip. “We go where the probabilities are good.”
Oct 8, 2018 6:19 AM
Answers · 6
It is referring to odds. 7 to 5 odds. For example, for every $5 that you invest, you make $7 in return.
October 8, 2018
More context would be helpful. A flip here almost certainly refers to a coin flip. Normally, a fair coin flip would be 50-50 (50% heads, 50% tails). A 7-5 flip would be a coin that lands heads 7 times and lands tails 5 times (58%/42%). The text appears to say that Buffet will invest larger than expected amounts of money when the odds are slightly favorable (58%). Buffet has a reputation for making large percentages (100% 300%) on his investments. It is very unlikely that he is looking to invest five units to get two (put five in, get seven out).
October 8, 2018
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