Would You Buy This Stock?

[David Sklansky]

This is a true story but I am leaving out some details for various reasons.

I bumped into somebody (I'm not saying when) who I hadn't seen in over a year. A very successful businessman, multi millionare, and extemely good amateur poker player. Over 50. We were very friendly acquaintances over the years.

I asked him how he was doing, and what he was doing nowadays, and he said he was seriously getting into the stock market, among other things, and it was working out for him. We continued to chat for a while and I told him that I expected to see him again soon at the WSOP and that it was about time he won it. We shook hands and parted.

After taking about twenty steps, he turned around and called to me. I walked back to him and he said something like " I would buy XYZ".

Keep in mind this wasn't an off the cuff recommendation. It was more like he mulled it over. Like he was feeling guilty for letting the conversation end without telling me about it.

Assuming the stock was $10 the day he told me about it, what's its EV two years later?