The world’s worst contract

In 1997, Max-Hervé George’s father bought a unique policy from a French insurance company that functions like Grays Sports Almanac from Back to the Future II, only for financial markets. The policy allows George to invest in investment funds offered by the insurance company at prices up to a week old, essentially traveling back in time with knowledge of which investments will increase in price the most.

For instance, he might have his money in an Aviva fund invested in the French stock market. Lets say the Nikkei 225 rises 5 per cent during the week. He’ll tell Aviva to move his investments into its Japanese fund, at the price before the market moved.

At last report, in 2007, George’s investments were worth €1.4 million and growing at a rate of 68.6% per year. Assuming that rate holds and he continues investing his entire allocation optimally, George will be a billionaire in five years, would be able to buy the insurance company in question by 2025, and be worth a whopping €234 billion by 2030.

See also how you could have turned $1000 into $167 billion by trading the S&P 500 perfectly last year.

• Back to the Future
• finance
• Max-Herve George
• time travel