Lottery winner followed careful spending plan

Comment #59

Road — Mon, 05 Mar 2007 21:08:01 GMT

In this article he stated that it was an unoffical amount of net worth. It is probably all precieved as fairmarket value of realestate development. From my experience in realestate development those guys can purchase a burn and turn for huge gains before they even sell it. Same with oil and gas industry. That is probably why his time frame does not match his claim, it is unrealized and also tax consideration. I would say his time frame is still aggressive but defintely within his reach.

Comment #58

Jill34786 — Sun, 04 Mar 2007 13:28:18 GMT

Your numbers for future gains aren't accounting for taxes

You're right, I guest I got lost once these numbers soared onto unchartered territory yet to be realized by any private individual.

Perhaps Forbes or Fortune will provide an update next year so we can concur if his previous investments were indeed factual

Comment #57

KY Floyd — Sun, 04 Mar 2007 08:35:52 GMT

Arguably, his net worth couldn't really be 130 million if he had 130 million but still owed tax, but I ran my numbers based on no taxes or fees being taken out. I did that mostly because it's the simple approach, but also because we have no way of knowing what his future taxes would be or when he would pay them. I would assume that returns as high as he claims would be from appreciation and he would therefore pay some of his taxes at the capital gains rate. Of course some gains would be from... [ More ]

Comment #56

Jill34786 — Sat, 03 Mar 2007 17:10:27 GMT

Floyd,

I used the 230% number as that was what he would had to gain(before paying Fed/State taxes) on his aggressive investments to reach his current net worth of $128-$130 million. Your figure of 128% doesn't take into account the taxes.

I am also assuming that he has closed his positions and taken his gains. Your figure of 128% would indeed be correct if he has yet to close out his position and not paid any taxes.

$35 million with gains of 230% would be $80.5 million but I also f... [ More ]

Comment #55

KY Floyd — Sat, 03 Mar 2007 09:22:28 GMT

You could always buy Cisco in the early 90's and hold it until it peaks. IIRC, an initial investment of $1000 could have grown to about a million in about 10 years. Doing that in 10 years would require your investment to nearly double every year.

Earning huge returns happens all the time. Somewhere in the next 3 to 10 days somebody is going to turn a risky investment of $1 or $100 into between $75 and $350 millon. Whether it's picking stocks or lottery numbers, there's always a choice th... [ More ]

Comment #54

KY Floyd — Sat, 03 Mar 2007 09:10:05 GMT

He claims to have started with 45 million in conservative investments, which we both agree might have become about 50 million. That means he's claiming he started with 35 million in aggressive investments, and in about 18 months he gained 45 million to a total of 80 million. That's a gain of 128% to a total of 228% of his starting principal. Your numbers represent again of 230% to a total of 330%.

Getting the same results with 130 million would give him a gain of 166.4 million to a to... [ More ]

Comment #53

pumpi76 — Sat, 03 Mar 2007 03:13:54 GMT

sorry it was trading not investing....I've even heard it on MSNBC...i read the stories also...I got one article by Marjory Abrams, Publisher...The subtitle is: Wall Street Insider reveals how he did it....

It got to do with something called Relative Strenght Ranking of stocks...On the article the author encourages you to read a book titled: Money Secrets of the Rich Well-connected ....In the article the author points out how a wall street insider turns a few thousands into 200K in les... [ More ]

Comment #52

CA LotteryGuy — Sat, 03 Mar 2007 00:09:44 GMT

pumpi76...let me know how the people took $75k and turned it into $225k in less than 2 years and I'll take whatever I play in the lottery and follow that plan! Tripiling your money every two years is too good to be true

Comment #51

CCHS13 — Fri, 02 Mar 2007 23:58:31 GMT

Thanks for the info justxploring

Comment #50

pumpi76 — Fri, 02 Mar 2007 23:46:12 GMT

I've heard several times of people investing 75K and getting around 225K in less than 2 years...So if you invest 35 million in 2 years taking the rate of how much your money multiplies, you should have 105 million dollars..You take those 105 million dollars and invest it for 2 years and you should have 315 million in 4 years...YOu take that 315MIllion dollars and do the same for 2 years and you should have (notice i am saying you should have) 945 million...You take those 945 million and invest i... [ More ]

Comment #49

Jill34786 — Fri, 02 Mar 2007 21:36:47 GMT

While I have no doubt that most of us here are happy for Mr. Duke, it would have been nice of Fortune Magazine detailing how he grew his assets instead of how he is allegedly' doing.

I don't think anyone here poses a threat to his wealth making secrets so I am also dumbfounded as to why the writers simply wrote a story with no substance.

Comment #48

CA LotteryGuy — Fri, 02 Mar 2007 21:16:58 GMT

As this article was published in Fortune Magazine and written by a staff writer from Fortune, don't you think either the writer or editor of the story should have looked into this claim just a bit? It seems like quite a few folks on this site very quickly came to the conclusion that growing $80 million to $128 to $130 million in 18 months is a bit suspect. Heck if it is true far more readers of Fortune would rather know how that was accomplished versus how well a lottery winner is doing and ye... [ More ]

Comment #47

Jill34786 — Fri, 02 Mar 2007 20:51:32 GMT

$130 million: Net ROI(Return on investment after taxes)=230% every 1.5 years.

Net gains Total

1.5 years $299,000,000 $429,000,000

3.0 years $986,000,000 $1,415,700,000

4.5 years $3,256,110,000 $4,671,810,000

6.0 years $10,745,163,000 $15,416,973,000

7.5 years $35,459,037,000 $50,876,010,000

9... [ More ]

Comment #46

KY Floyd — Fri, 02 Mar 2007 20:23:05 GMT

It sounds like you took that 230% as an annual return instead of the return over a bit more than a year and a half. If he could continue to get an annual return of 62%, after 9 years each dollar he invested would grow to almost $77 if no taxes or fees had to be paid in the meantime. Investing $130 million for 9 years at 62% would result in about $9.99 billion.

Bill Gates may be a decent investor, but he got rich by sticking with his own stoc and being extremely lucky. Buffet, OTOH is one o... [ More ]

Comment #45

KyMystikal — Fri, 02 Mar 2007 17:55:39 GMT

Hmmm his brief description of his system sounds a lot like the system I used when I won $5,000 on powerball with $2.00. I had went back over the past 6 months and cameup with the most frequent numbers and powerball numbers that hit. back then the bonus # that was most frequent was 26. Then I came up with the other 5 numbers from a selection of 6 and rotated one number off and played just two dollars. I probably would have won more if I would have played all 6 combinations with the 6 numbers. I

Comment #44

Jill34786 — Fri, 02 Mar 2007 15:58:28 GMT

Just for kicks, I crunched the numbers in the event Brad Duke were to allocate 100% toward aggressive investments which has already returned 230% in the past year and a half.

Within 9 years, he would be worth in excess of $167 Billion while reaching $25.714 Trillion by the age of 59. That would certainly make both Bill Gates and Warren Buffett seem inferior.

Comment #43

justxploring — Fri, 02 Mar 2007 15:26:46 GMT

If you type Gift Tax in a search engine, you'll see lots of articles on this same subject. In fact, if you use the Search feature on this board and type the words gift and tax you'll also find lots of interesting comments like yours. The IRS site defines what can be considered a tax exempt gift.

I totally agree with you, not only about the gift tax but the inheritance tax. Forget the lottery for a minute. Say you work hard your whole life and put away money to give your children and... [ More ]

Comment #42

Jill34786 — Fri, 02 Mar 2007 15:22:01 GMT

Hi Metro,

I understand what you're implying as I also trade options using a variety of strategies. I allocate roughly 10% of my assets toward options as I feel it is inline with most seasoned traders.

Obviously, if someone were to start trading with something in the $25k range than that allocation may very well be 50% if not more.

I just can't see this MM winner investing most of his $35 million in options, perhaps $3 million but that would still be an incredibly large amount. Let's ass... [ More ]

Comment #41

Jill34786 — Fri, 02 Mar 2007 14:46:20 GMT

Thanks for the welcome DD.

I had occassionally peeked my head in on this forum in the past couple years but just recently decided to sign on.

Comment #40

CCHS13 — Fri, 02 Mar 2007 14:32:12 GMT

Nice story. I have a question for anyone out there that can answer.

How in the hell can one pay all of those taxes at the time of winning

and still be taxed depending on how much money one chooses to give away

What is going on in this country? You cant do what you want with your money

even after you have paid the income tax

Comment #39

SirMetro — Fri, 02 Mar 2007 14:06:36 GMT

I think you overlooked one very powerful form of investing when considering aggresive style investments. This is commonly referred to as Hedge or Option trading.

Option trading (Hedge funds are a bit more complex, but use similiar concepts) are a powerful tool in one's investment technique to rapidly increase one's value. A simplistic example would be this, you purchase 100 shares of a stock for $10 per share. Then you sell a Call Option of $15 for $1 per share (profit of 10% spread over 3... [ More ]

Comment #38

LckyLary — Fri, 02 Mar 2007 05:51:52 GMT

The thing I need to figure out is what algorithm he used. He hinted that he took the 15 numbers that came out the most in the last 6 months, which is a very basic frequency count, and maybe he used one of those balanced wheeling systems, as even with his system you would face huge odds to match 5 out of 15 plus the bonus (? out of ?)...

I grabbed an old data file from 2005 and tossed in a special PB loader into my big program and tested for that drawing. It was 39-24-05-28-07 Powerball: 36. T... [ More ]

Comment #37

KY Floyd — Fri, 02 Mar 2007 02:38:39 GMT

I'm with Jill. I think everything this guy says needs to be taken with more than just a grain of salt. Let's start with what he really started with. The cash value was about $125 million. The top brackets for federal and Idaho income tax were 35 and 7.8%, so unless he had some serious deductions almost all of that $125 million would have been taxed at a total of 42.7%. The remaining 57.2% of $125 million would only be $71.5 million. He could have made charitable contributions that would lower t... [ More ]

Comment #36

DoubleDown — Thu, 01 Mar 2007 23:40:40 GMT

Welcome to the post, Jill34786 !!

I knew someone would figure out this thing. Thanks for the insight...

DD

Comment #35

ochoop17 — Thu, 01 Mar 2007 23:21:38 GMT

He got his money . Now we can get our.

Over 267 millions in MEGA MILLION$$$$$$$$$$$$$$$$$$

Appearing this friday on your favorite lottery station

Comment #34

YeeHaw — Thu, 01 Mar 2007 17:47:38 GMT

This whole thing stinks to me. I remember when this guy won. I even went back and read his Powerball winner's story to see if it changed. He used a series of numbers he's been playing for years . I find it hard to believe neither he or his publicist mentioned his system???

This reads like a press release for his lottery system.

Comment #33

Jill34786 — Thu, 01 Mar 2007 14:07:50 GMT

>>$45 million: Safe, low-risk investments such as municipal bonds<< >>$35 million: Aggressive investments like oil and gas and real estate<<

My total net worth right now is at an unofficial value of $128 to $130 million. We've done very well for the first year and a half.

First of all, I am happy that he won and has chosen a wise path to grow his assets but to reach $1 Billion net worth in 12 years, his assets have to grow at a rate of 24% (net after taxes) annually.

I have a har... [ More ]

Comment #32

doctortalk — Thu, 01 Mar 2007 08:08:19 GMT

hi all, I Just registered to make a post and hope many more to come. This story spoke to me because I'm also an avid cyclist. A 11K bike is a bit much though, Mine costs 11h and it's more than enough. It seems the guy rides bikes for the fitness, not because of the environment. He owns gyms and does a spinning class.

Number picks/predictions ads are amazing, i can't imagine anyone paying money for them. there is a free site I refer to and it offers picks on the last six month... [ More ]

Comment #31

twisted — Thu, 01 Mar 2007 02:24:39 GMT

I have a question. What kind of a system was it where he had to play the same set of numbers for 3 years? Is that a system at all? Well it doesn't really matter at this point. System or luck, he won it either way.

But this is a great story. The man is doing exactly what he wanted. Who are we to judge and criticize what he has done with his money? Someone will always criticize the way we handle THE WIN (if we ever won). The guy is on his way to achieve the goal he set for himself an... [ More ]

Comment #30

DoubleDown — Thu, 01 Mar 2007 00:57:02 GMT

Good little segue, JXP---The picture thing just shows that as we get older, we look the same, so they save the expense and time of taking a new one.

But I bet you have not aged at all in those 6 years !!!

I KNOW I haven't ... LOL

Comment #29

cajunken — Thu, 01 Mar 2007 00:51:02 GMT

wow!what a nice guy

Comment #28

MADDOG10 — Thu, 01 Mar 2007 00:05:56 GMT

After reading this story, I find that whatever this man has said about a system that HE had used to win is probably true, after all he did WIN . And it wasn't a quick-pick. As far as I'm concerned, he has done exactly what he started out to do, which was to win the Lottery. He had a plan in effect long before he won, and he has stuck with his other plan to enhance his winnings to a different level. Kudos to him. Great story amongst others whom have failed.

Why even try to backtest because... [ More ]

Comment #27

LckyLary — Wed, 28 Feb 2007 23:30:23 GMT

I remember the Wests in Oregon won the 340 million Pb and the 363 BG was two winners. I also notice the 5 top jackpots never got close to or over 400M. The only way that happens is on this Mega if it keeps going it might make it this time.. but on Pb it is harder to because of the Roll-down rule after a record is reached and also because once a record is reached the News is all over it and the Fever kicks in, and with that usually you find a winner the next drawing or the one after.

I am wo... [ More ]

Comment #26

justxploring — Wed, 28 Feb 2007 22:47:07 GMT

This has nothing to do with the lottery, but I thought some people might find this interesting..at least people around here were surprised. I just thought of it since we were talking about using old photos. (sorry, but my mind has its own segue system)

My birthday is in March so I received a notice that my driver's license needs to be renewed. In FL your license is replaced every 6 years. (I get a new registration sticker annually by ordering it online or by phone.) My neighbor went up to t... [ More ]

Comment #25

justxploring — Wed, 28 Feb 2007 22:31:45 GMT

Oy! I hate it when I go back and see I made a bunch of typos, but at least everyone got the gist of what I was trying to say!

I think big ego is correct, CAlotteryguy. There's nothing wrong with trying to make even more money and getting the word out is one way to attract investors (and scam artists too!) I know what RJOh wrote is true, but the picture looks like one of those posed glamour shots. Doesn't it look like a college graduation picture?

DoubleDown, definitely agree. Howev... [ More ]

Comment #24

MissNYC — Wed, 28 Feb 2007 21:51:40 GMT

I Know! I saw the E True Hollywood Story on Lotto winners, and this girl told her boyfriend after she bought her ticket that she was going to win the lottery, and won the California Super Lotto (about 90 mil), then this other guy, who ended up in trouble, also said he had a feeling and checked his numbers shortly after the drawing. It's strange, but I wonder how true. I wonder if these people REALLY wanted to won and confused their want with knowing, especially after they got luck and won. I thi... [ More ]

Comment #23

RJOh — Wed, 28 Feb 2007 21:45:18 GMT

But if you're filling out play slips to play a lottery then your numbers have to come from somewhere, he just explained how he picked his, not how anyone else should pick theirs. Losers can say anything they want about picking numbers ,who cares 'cause everybody want to hear what a winner is saying even if he's saying he picks his numbers from where the sun don't shine.

Comment #22

RJOh — Wed, 28 Feb 2007 21:18:54 GMT

His story and picture probably started out as a local story in a his hometown paper where everyone already knew of his good fortunes and probably knew him too. The problem with allowing a local paper to do a story about him was most home town papers are owned by big companies that publish globally and his story could end up anywhere in the world.

People have to understand what their local news paper knows about them can be world news.

Comment #21

s5thomps — Wed, 28 Feb 2007 21:13:53 GMT

Sounds like he haves his stuff together, I was just watching THS (The curse of the lottery) and I watched how David Edwards who won the powerball in 2002 let the money change him. What people don't seem to understand is that you do not need expensive automobiles and a big house to prove your worth. Will Smith who is an actor and multi-millionaire had a very intresting quote his father told him. It's nice to have 50 cars, But you sure don't need them because you can only drive one at a time! To... [ More ]

Comment #20

KY Floyd — Wed, 28 Feb 2007 21:03:34 GMT

Winning a jackpot doesn't do anything to prove a system worked. That his system lead him to choose the numbers that won is obviously a good thing for him, but that's no different than saying QP's are the best strategy because most winners used them. If 3% of players are named Fred then about 3% of winners will be named Fred, but nobody thinks that changing their name will increase their chances of winning. If 25% of players pick their numbers using a system then 25% of winners will have used... [ More ]

Comment #19

CA LotteryGuy — Wed, 28 Feb 2007 21:03:28 GMT

justxploring...great question! Particuarly as this article was published in Fortune which has a nationwide distribution. Good for him that he won. To me it sounds like this guy has a bit of an ego, not that there is anything wrong with that. He wants for prople to know he won with his system, before systems were readily avaiable on the internet. Also he wants to turn his $88 million into a billion. Seems a little much, but it is his money to do as he pleases.

For me it would be lie low... [ More ]

Comment #18

LuckyLilly — Wed, 28 Feb 2007 21:02:37 GMT

HMMMMMMMMMMMM! is right. lol Wonder if her last name is really Duke

Comment #17

DoubleDown — Wed, 28 Feb 2007 20:53:27 GMT

Excellent Points..

I don't know about the party either , but I would not be driving a 2002 Jetta...

He needs to realize he is a security risk... a kidnapping target.

I would opt for a urban assault vehicle ( SUV ) with bulletproof windows and doors at the very least.

Comment #16

justxploring — Wed, 28 Feb 2007 20:43:33 GMT

Okay, so far nobody has asked this question, so I will. Why would he want his photo published at this point? Would you want a story written about you after you finally settled down? The reason I am mentioning it, is because anonymity has been a subject for discussion continuously on this board.

Regarding the system, many people say they've used systems for years and then they win one quick pick. A system can be anything numbers at all. I mean, how many times have we read I just thought of... [ More ]

Comment #15

CA LotteryGuy — Wed, 28 Feb 2007 20:11:12 GMT

I will settle for LUCK .

Comment #14

RJOh — Wed, 28 Feb 2007 19:35:38 GMT

From most people standpoint winning a lottery jackpot is LUCK! no matter how it's done, winning one more than once is LUCKIER! .

Comment #13

CA LotteryGuy — Wed, 28 Feb 2007 19:27:36 GMT

From my standpoint if a system only generates one big win then it is LUCK

Comment #12

pumpi76 — Wed, 28 Feb 2007 19:21:25 GMT

What is more important:

a) a system that wins you 4of 6's and 5of 6's every draw but never wins you the jackpot or

b) a system that wins you 0 dollars every draw but wins you 200 million jackpot every 300 draws or for that matter every 400 draws...

It only takes 1 time to win the lottery, only ONe time...YOu could have played the numbers for 5 years without success, but is that One time that matters, that makes all the different, just hope that the jackpot is more than 50 million... [ More ]

Comment #11

konane — Wed, 28 Feb 2007 19:05:38 GMT

Hats off to him

Comment #10

spy153 — Wed, 28 Feb 2007 18:35:54 GMT

12,000. annual payment to family members.

wasn't there a girl on here yesterday that said that, and then said it was a homework assignment? HMMMMMMMMMMMM

Comment #9

DoubleDown — Wed, 28 Feb 2007 18:27:17 GMT

What a refreshing change from the negative press that we see so often with large JP winners.

He has a plan and he sticks with it. Very, Very smart

Comment #8

RJOh — Wed, 28 Feb 2007 18:26:35 GMT

Winning a jackpot is all the verification he needs. For all those players coming to LP and asking has anyone ever won anything using a system? , they have their answer from a jackpot winner and an explanation of how he did it. As he said, as he messed around with his system he would win a little until he eventually won the big one, most systems don't do that in a life time and his did it once. If he wins big again it wouldn't prove his system works to most people but just that he's lucky and... [ More ]

Comment #7

CA LotteryGuy — Wed, 28 Feb 2007 17:42:28 GMT

If he really had a system, what faster way to increase your money and become a billionaire than to play the system. There have been quite a few large Powerball Jackpots since he won in May 2005 and I didn't see his system win these drawings.

Also, his boast of having a system and saying that when he won there were no systems on the internet and now they are all over the place (as if his win was the catalyst for systems coming of age) rings a litle hollow.

With all that said, congratulat... [ More ]

Comment #6

JAG331 — Wed, 28 Feb 2007 17:22:34 GMT

I agree. It's virtually impossible to prove that a system works unless you have repeated trials and verifiable results.

Comment #5

Prob988 — Wed, 28 Feb 2007 17:11:35 GMT

His representation that he had a system - and no doubt he did - doesn't mean the system worked.

The ticket he purchased had a finite probability of winning, no matter how he picked the numbers.

Comment #4

pumpi76 — Wed, 28 Feb 2007 16:52:47 GMT

What's happening with all these lottery winners that are certain they are going to win...It is not the first time i hear people say they knew they were going to win the lotto ...I am glad for him because this is the first time i hear a guy say he had a system he used for the Powerball...

Anyone knows who are te winners of those 5 Powerball and Big Game's biggest Jackpot ever...I already know Whitaker...

In the movie Swordfish the terrorist (john travolta) tells the hacker (hugh jackman... [ More ]

Comment #3

gocart1 — Wed, 28 Feb 2007 15:45:35 GMT

his plan sounds good.hope i get the chance to use this same plan friday night with mega millions.good luck to all my LP friends

Comment #2

Bradly_60 — Wed, 28 Feb 2007 15:35:25 GMT

Awesome story. Will help me out a lot when I win MM on this jackpot run....haha.

It is not to often you hear about huge lottery winners actually making sane choices and telling the rest of the world about it.

Brad

Comment #1

JAG331 — Wed, 28 Feb 2007 15:25:14 GMT

He's been the Anti-Jack so far. Will it continue?

I would've bought a couple of flashy new cars by now, but I think bikes are more his style.

Lottery winner followed careful spending plan

Lottery Post — Wed, 28 Feb 2007 15:12:11 GMT

How one lucky winner spent his new-found fortune

Brad Duke, 34, a manager for five Gold's Gym franchises in Idaho, pocketed a lump sum of $85 million after winning a $220 million Powerball jackpot in 2005. He spent the first month of his new life assembling a team of financial advisors.

His goal: to use his winnings to become a billionaire. Here's what Duke has done with his money so far.

$45 million: Safe, low-risk investments such as municipal bonds$35 million: Aggressive investments... [ More ]