Blog – The Ponzi Factor

May 30, 2020

Bitcoin vs GOOG

This article explores the legitimacy of the asset values for Google class C shares (GOOG) and Bitcoin
An asset’s value is defined as what the asset holder expects to receive from the asset.
Legitimacy is defined as a form of guarantee for an asset’s value.

If non-dividend stocks from Google (GOOG) meet the definition of a Ponzi scheme, what does that mean for Bitcoin?

To answer this question, we must clarify what value is to investors, and more importantly, the idea of legitimacy. Read More

September 16, 2019

The Ponzi Factor | Proof by Definition

Proof by Definition
$50,000 Open Challenge
Rules and Guidelines
Summary

Proof by Definition

S.E.C. Definition: A Ponzi Scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Read More

August 9, 2019

Stock Buybacks | False Buybacks

Narration from Chapter 6, which is based on the research below.

Stock buybacks cannot be treated as returns to investors because public companies can rescind what they returned through dilution.
This paper defines False buybacks as situations when the shares outstanding for a company does not decrease around the year it announced stock buybacks.
The research looked at 2,055 public companies that announced or engaged in stock buybacks between 2009 -2016, and found 63% of the buybacks were false.
Most of the false buybacks were from companies that paid dividends, which opens new questions about the legitimacy of dividends.

If public companies are consistently buying back stocks, why are there so many public companies remaining public?