Warren Buffett Wants You to Become a Billionaire - Just Fill Out a Perfect NCAA Bracket
Andrew Wiggins and Jabari Parker could potentially win you a lot of money come March.
Warren Buffett, CEO of Berkshire Hathaway, in conjunction with Quicken Loans, will be offering $1 billion to anyone who fills out a perfect NCAA March Madness bracket this year, accordng to the New York Times.
Each year, millions of people fill out brackets in hopes of winning money, but the stakes have never been higher. Buffett has stated that the prize money will be paid out in 40 annual payments of $25 million, or a one-time lump sum of $500 million. The first 10 million people who enter the contest will be eligible for the grand prize.
While this would be an astronomical figure for Mr. Buffett to give up, the odds of filling out a perfect bracket are essentially zero. To be more precise, they are 9.2 quintillion to one. In golf terms, one would have a better chance of hitting four hole in ones in a single round.
On Nov. 26, Buffett was in Detroit for Goldman Sach's 10,000 Small Businesses initiative. There, he met up with Dan Gilbert, chairman of Quicken Loans, and the two concocted the billion-dollar payout idea as they toured the city. The two men will fill out their own brackets and have a side bet between them.
The Los Angeles Times reported that one of Buffett's insurance companies will be writing the $1-billion policy in exchange for a premium, which neither he nor Quicken Loans would disclose.
He said "the deal is not that different from many other insurance transactions his companies conduct. He evaluated the potential risk and then set a premium that gives him an edge against the probability of having to make a payout."
Jay Farner, the president and chief marketing officer of Quicken Loans, said he was "super hopeful" that there would be a billion-dollar winner. Even still, Buffett can most likely rest easy. Even in the event that someone miraculously fills out a perfect bracket, the CEO of Berkshire Hathaway can withstand a hit to his wallet.
"We've lost more money in a given event before," Buffett said. "Hurricane Katrina probably cost us $3 billion. We will put more at risk in a given insurance transaction than anyone in the world. But we have more capital than anyone in the world."