The Simple Truth

$34 trillion of stock value = $0 in real money

Investors want money, not value.

The Ponzi Factor is the most comprehensive research ever compiled on the negative-sum nature of capital gains (non-dividend stocks). The book 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.

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

About the Book

Fundamental ideas are easy to understand and influence many beliefs.

The legitimacy of the stock market rests on two fundamental assumptions. One is the idea that stocks are “equity” instruments that represent ownership. The other is the perception that stocks are “positive-sum” investment instruments, and investors win more than they lose. However, these assumptions have never been properly investigated, and it can be shown that neither are true.

The Ponzi Factor does not criticize the investment system. It proves why the features of the current stock market system meet the definition of a Ponzi scheme, and explains why even in the absence of insider trading, high-frequency trading, and highly improbable market crashes; the stock market is simply not designed for investors to prosper.

A stock without dividends is a Ponzi asset. It’s not how ownership instruments were designed to work historically or logically. This is not another story that will disappear after another market crash, it is an idea that will remain relevant for as long as the stock market exists.

What’s Inside

About the Author

Tan Liu was born in Beijing, China. He moved to the U.S. when he was six and was raised outside Washington D.C. Unlike his sister who finished high school and got a scholarship to MIT, Tan took a less traditional path and went straight into the working world. He was employed as a bike courier after high school and later supported himself through college as a freelance photojournalist for networks such as CNN, MSNBC, and Fox. In addition to his professional life, Tan also spent many years volunteering as a youth mentor in D.C. and Inglewood, California.

In 2006, he completed his undergraduate degrees in economics and finance from the American University. He has worked for two hedge funds and a trading firm in Shanghai, but spent most of his career managing distressed assets for a bank. He officially exited the finance industry in 2015 and is now finishing a master’s degree in applied statistics.

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2 weeks ago

The Ponzi Factor

📚Renaissance Technologies is "the most" successful hedge fund in history. Their trading strategies are based on math, statistics, focused on the Ponzi factor, and probably used what are now considered machine learning techniques back in the 1990s.

Job qualifications for their Research Scientists: Experience in finance is NOT REQIRED.
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4 weeks ago

The Ponzi Factor

📚 Kimberly Clark beat earnings estimates with organic sales growth of +4%. Therefore the stock dropped -7%. 😝

Current dividend yield is around 3.2%. Not a Ponzi asset but The Ponzi Factor at work.

#investing #stockmarket #shortselling #wallstreet #NYSE #Nasdaq
#theponzifactor #ponziassets #FooledByRandomness #stocks
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1 month ago

The Ponzi Factor

TESLA SCENARIO: When shareholders profit from failing companies that suffer extraordinary losses

Looked at active #stocks btw 2010-2018.
Top 10 for:
- Comprehensive Losses
- Price Inflation
- Dilution

Will make the full data available soon
$TSLA $TSLAQ #ponziassets #unicorns
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2 months ago

The Ponzi Factor

‪📚A stock without dividends is a Ponzi asset. This is not a perspective but a provable fact.‬

$20,000 to anyone who can show why $TSLA $GOOG and $BRK DO NOT meet the SEC’s definition of a Ponzi scheme.‬

This contest is not a joke. But if you think it’s easy money then you never researched the history of stocks. You don’t know why stocks are called equities. And you don’t know the difference between imaginary asset values and cash.‬

There are differences between proofs and opinions. I have a proof. My critics have opinions. The only way to win is to find a flaw in my proof.🍀

More info at:

#investing #stockmarket #shortselling #ipo #wallstreet #nyse #nasdaq #stocks #ponziassets
#theponzifactor #thebigshortmovie #fooledbyrandomness #nassimnicholastaleb
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