It has got to be a slow week when the winner of the soccer World Cup is a tipping octopus who flipped 8 heads in a row; trouncing among other tipsters Wall St. Quants.

Lucky Lucan (aka 888) feels sorry for St. Paul’s bookie who had to suffer the losing streak.

Also a punter who risked just 10% of his bank on such a losing streak would have fared like this…

1.  100 -10 = 90
2.   90 - 9 = 81
3.   81 - 8 = 73
4.   73 - 7 = 66
5.   66 - 7 = 59
6.   59 - 6 = 53
7.   53 - 5 = 48
8.   48 - 5 = 43 or loss of 57%.

The losing streak is one of a few reasons why quants and traders in the stock market mostly lose. There is no answer to the losing streak.

But life is a gamble and you need a healthy philosophy. First:

Nothing ventured nothing gained.

Now let me tell you a secret. I call this the secret that nobody wants to know!

Everything passes from the impatient to the patient.

In gambling terms this means only take a coin toss bet (even money) when it is offered to you at (3.00 decimal odds) or better. Stock markets in times of fear for instance will throw up such bets.

What is not commonly understood is that what I have described to you here is actually the true meaning of value investing and a Buffett rule.

Declaration: Lucan is not a licensed investment advisor