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.
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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The Ponzi Factor
1 day ago
When I'm silent, I'm working (most of the time😝).I'll have more details later, but here's the short of it:The updated version of the Ponzi Factor is no available on Amazon and Ibooks. The updated audiobook will be available in 3 weeks. The main update is a section in chapter 6 that talks about #stock #buybacks.The website has been updated to host ongoing research. The two that are up are:1) Research on stock buybacks (similar to what is in the updated book).2) TPF Proof by definition. $20,000 prize to any finance junkie who can prove me wrong. Don't bother competing unless you can show me how money grows on trees.Additional research for the near future:- A comprehensive database for active and legitimate dividend stocks.- A database of additional Tesla scenarios (Ponzi assets).- A comprehensive list of historical S&P constituents. I'm providing this for research purposes. (The world of finance tries to hide and sell this data. One of my goals is to make it available for free.)AND A LOT MORE!theponzifactor.com/research/ ... See MoreSee Less
Research – The Ponzi Factor
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3 weeks ago
I really don't have anything personal against Tesla. Just practicing some new data visualization skills. 😂 $TSLA Dilution: 92% increase in shares outstanding.Income/Loss in year-9:$MSFT +$9 billion$AAPL +$790 million$AMZN +$359 million$NFLX +$126 million$TSLA -$976 billion (loss) ... See MoreSee Less
1 month ago
📚 I'll probably get banned from Amazon at some point too.😝#PonziAssets #stocks #amazon ... See MoreSee Less
📚In the process of updating the book.People asked for more "Tesla Scenarios." I went through the active US stocks (as of Dec 2018) and found a few hundred. Here's a small sample. I'll make the full list available in September. #PonziAssets #stocks #investing ... See MoreSee Less
The New York Stock Exchange and Nasdaq just lost $1 trillion in value. Where did all that money go?!?! 😱#Ponziassets #stocks #investing #stockmarket #crash ... See MoreSee Less