I never saw this until today, but it seems to have been going the rounds for some years and generated a lot of discussion. Googling the first phrase gets over 2 million hits.
A man buys a horse for £60 and sells it for £70. He then repurchases for £80, and sells it for £90.
Has he gained or lost, if so by how much? Or has he broken even?
Sometimes it’s a goat or a pig etc.
If I think of the man with an initial amount of £200. He spends £60 which leaves him with £140 (and a horse😀). He sells it for £70 which leaves him with £210. He buys it back for £80 which leaves him with £130. He sells it for £90 which leaves him with £220. He has therefore gained £20.
Maths is not my strong point but I think he breaks even 🙈
It hasn't taken into account the cost of feeding, stabling, farrier, veterinary, insurance, tack, etc. for the horse. So looking at just the cash, he is £20 up. But that wouldn't cover the expenses and he could have lost a lot in the long run, especially as he ends up with no horse.