The Ponzi Factor
The Simple Truth About Investment Profits
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5.0 • 7 Ratings
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- $4.99
Publisher Description
"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident." --Arthur Schopenhauer
The Ponzi Factor is the most comprehensive research ever compiled on the negative-sum nature of capital gains (non-dividend stocks). The book shows why, as a whole, ALL investors will lose money from buying and selling stocks.
Most people don’t realize that profits from buying and selling stocks come from other investors who are also buying and selling stocks. 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.
This book is not for everyone. If you are a finance junkie who wants to rationalize why companies don’t have to pay their investors and believe a system that shuffles money between investor can magically create more money than people contribute, then this book is not for you. On the other hand, if you understand why we can’t create money by shuffling it with imaginary paper, and that investors invest because they want money, not value, then you will learn something you will never forget: The mechanics of how the stock market works and what really makes a stock price move.
A stock without dividends is a Ponzi asset. It’s not how equity instruments were designed to work historically and not how ownership instruments are supposed to work logically. The Ponzi Factor is not a perspective or an opinion. It is a proof that is based on definition, logic, and it is supported by observable facts and history. This is not a story that will disappear after another market crash. It is an idea that will remain relevant for as long as the stock market exists.
Customer Reviews
Must Read if you invest in Stocks
you are or thinking about gambling your hard earned money in the Wall Street Casino you must read this book. It sheds light on the very basic PONZI nature of the Stock Market and how not very many people other than companies and brokers win. Despite the Media and our financial education system's effort to represent the Market as something so complicated that you have to have advance degrees to make sense of it, the author has been very successful to remove the veil of complexity to demonstrated the fundamental flaws of the Market in a very easy to digest language. The book also contains a brief history of the stock market and clearly demonstrates how what we have today is totally different than what the original intent of the investment instruments where designed to do which has resulted in major Market crashes in the last 100 years.