Pistacchio Asks … 2!



Pistacchio finds 100 million dollars in his pants pocket and decides to invest it. He buys shares for 99 million dollars and keeps 1 million dollars in cash (that is, at the beginning of the day he has 99% in shares and 1% in cash).

However, the stock market goes down so at the end of the day the percentage of shares in your portfolio is 98%.

How much are Pistacchio’s total investments (shares + cash) worth at the end of the day?



  1. 98 million dollars.
  2. 99 million dollars.
  3. 96.6 million dollars.
  4. None of the above, I write my answer in the comments .
  5. No idea, but how honest is the person who irons Pistacchio’s pants !?


(4) The answer is extremely simple if one, instead of thinking about stocks, thinks about cash (which did not change). If the stocks are now 98% of the portfolio, it means that the cash is 2%. Given that a million dollars is 2% of the total value of the investments, by simple rule of three the total value of the investments should be 50 MM dollars.

Share this article

Recent posts

Popular categories