The version without no music is here:
FREE PDF Book:
NOTE: Stock buybacks are NOT returns/dividends because the firms just print shares after the buyback (dilution). Buyback video:
The Ponzi Factor is the most comprehensive research ever compiled on the negative-sum nature of capital gains—the money people make from buying and selling stocks. Unlike other finance books, this book does not assume stocks are ownership instruments. It investigates the ownership assumption and asks, “Why are stocks ownership instruments if the owners never receive money from the companies they own?” Most people don’t realize that profits from buying and selling stocks come from other investors. When one investor buys low and sells high, another investor is also buying high and needs to sell for even higher. Companies like Google, Telsa, Facebook never pay their investors. Their investors’ profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.
History shows that the association between stocks and ownership came through dividends—a profit-sharing agreement between the shareholders and the businesses they owned, which is also why all stocks paid dividends before the 1900s. The idea of non-dividend stocks is a new concept that came about over the past century. At some point, the academics and regulators decided it was okay for companies to issue stocks and avoid paying their investors indefinitely. But their acceptance of this new form of ownership—Ponzi assets—was through tradition (and possibly corruption), but not with any research or logic.
The sad truth is, people in finance do not study history and don’t know the difference between a value that comes from the exchange of money (a cerebral idea) and the money that is being exchanged (a possessable item). The product of this ignorance is a system and culture that treats Ponzi assets as ownership just because they’re printed by a company. It doesn’t matter if the company makes money, losses money, pays nothing, or prints as many shares as they want. If a company prints it, it’s ownership. This kind of shoddy logic doesn’t work in other industries, but it is the norm in finance.
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This felt like telling a kid Santa isn't real but to a 40 year old 😂
Stock price is forward looking that why there is uncertainity and complexity
This video is so funny.😂
i use the pryamide sequence to make money.
What a bizarre world we live in.
Never believe in stocks that much, im old school i guess
So if you purchase 51% of all stock u no longer have controlling interest?
Glad to know that I am not alone. Will shift my investments to metals and real estate.
“The value of a stock is just an idea. It is just a thought something completely imaginary”. This is WILD
the stock market is black magic lol you can make a pact with the devil and get something out of it but, when the devil decides to pull out his "wtvr fkyou" clause and shove his horns up your arse he'll just do it and you can't stop him.
Im not religious but I like the imagery.
basically just watch movies like wolf of wallstreet. matthew mcconaughey literally say it that it's all just them taking your money and making profit off of something they clearly know you cannot predict aka basically just gambling but THEY will make money because they are holding YOURS. then they just keep you addicted to giving them your money. simple and evil.
awesome video! truth hurts!
This is true
Investment in stock means buy at less than its intrinsic value and a retail investor can determine IV of only few companies but they buy it besed on publicity of media.
IV is the present value of approximate future cash flow of a company.It is not a number but a range between 2 numbers and it will expand over the years as the business grow and price will follow its IV in a long term horizon.
Intrinsic Value and relative value of a real estate and fixed rate bond also fluctuate based on political, natural or inflation of a state so does the stock market.
The prime threat of an investor is dishonest promoter of a company.
Thanks for the nice video. Can someone also please give me the title of background music? Thanks
Playing Chris Mansell in the background does not make you profound — or, any less incorrect than you blatantly are.
I always felt this is true. Finally someone proves it.
What about dividen stocks?
Tesla back to $38.50 …
Just invest in a CD. Youll get a smaller return but its much safer. right now im getting 4%. However i am aware that if i had put it in the market I would have made 20% but I know the market will crash soon. I just don't know when. And i don't want my hard earned cash there when it does
The video seems to understand why money has a value, why real estate has a value, why capital has a value. A share of a company represents partial ownership of a vast mass of capital, not just cash but machinery and land and intellectual property and everything else owned by these companies. With stock, you can make decisions on who leads the company through electing directors to the board, which is valuable, and if the company goes under, shareholders get money from selling off those things the companies owned.
This mass of capital is constantly growing, thanks to people's labor, and when a company makes extra money, that extra money is reflected in the value of the stock.
Now, I'm not saying there isn't an aspect of a Ponzi scheme in the stock market. It does function like that in some ways. It is rigged in other ways too, I think. But ultimately, stocks represent shares of ownership in real assets owned by corporate entities that grow as we produce more and more.
Hi, love this video. I’m new to finance and I’m wondering, how do the listed companies make money if the money invested by investors just simply go to other investors
It’s an auction
You have no idea what you're talking about unfortunately. How can a market for stocks(literally paper proving ownership of a company) be a scam when people know that they can loose money. See you're assuming a place where people loose money is a ponzi scheme, but in a ponzi scheme there is no actual value made and people don't assume to loose money, they don't even know its a scam. However, on a stock market the driving factor is value that we represent in money. The value of a stock is a complex mechanism but the money does not come from buyers of a stock but from businesses traded on a market or in simple terms from customers of a business. Not even mentioning that you assume stock to be some worthless paper when in actual the world a company is made out of assets, liabilities and equity. You showed an example of real estate and its physical value, but if you own a stock you also own a part of let's say for example a factory building, so in case of company liquidation you are entitled to a part of the money made from a sale of that physical building. Please don't share some conspiration theories, if you don't have any idea what you're talking about or just try to learn about a system first. Good luck in learning 🙂
Mann this is so true I’ve been tempted years ago but NEVER officially got into it.