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Summary

"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). This means, 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 that money doesn’t grow on trees and investors invest because they want money, not value, then you will learn something you will never forget: the simple truth about what makes a stock price move and the mechanics of how the stock market really works. 

A stock without dividends is a Ponzi asset. It’s not how ownership instruments were designed to work historically or logically. 

True ideas will never disappear. It can be covered, and we can get distracted, but the truth never goes away and becomes self-evident over time. 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.                              

©2017 QuantStyle LLC (P)2018 QuantStyle LLC

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Profile Image for Armen Topchyan
  • Armen Topchyan
  • 07-08-20

Tons of falsehoods

I don't think this author knows what he is talking about. Go read "Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation " by Asquith and Weiss if you want to learn how finance really works. Watch Ben Felix on youtube if you want to learn about investments. The Great Courses also has some great material on how to invest. Peter Lynch has an interesting take of his own. But no investment book or strategy will mean anything if you don't trust the system and think stocks are a Ponzi scheme. It might help to learn what they truly are and how they really work, which is why I would start with Lessons of Corporate Finance. If you are still skeptical learning basic economics and corporate law might help too. If you are skeptical after that then well, more power to you.

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  • Nathan
  • 25-09-18

Eye opener. Articulate.

I knew something was wrong but I just couldn't put my finger on it. Tan Liu articulated it perfectly in this book. His argument is air tight leaving stock junkies nowhere to run.

You can pretty much back any finance major/stock junkie into a corner like I have once you read this book or give it a full listen. Truths don't go away, they stay and remain unchanged.

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  • Drew562LBC
  • 01-07-18

This book is a great investment of yout tme.

The author makes a lot of great points and observations. Very well written with clear and concise ideas regarding the stock market, a clear picture is painted. The definition of an expert is one who can explain the complex in understandable terms, Tan Liu meets this definition.

The truth really is simple after you see it. IF you take the RED pill and are still in the Matrix did you take the red pill and if you do nothing or do not know how to fight the system. I have wondered about some of these observations not as deep of explanations, some of these ideas are new and go further than I have made, yet I stay in the game. Just like Social Security, the Stock Market uses funds from new investors to pay those that got into the PONZI SCHEME earlier. Yet that is the system, I see the problem what is the solution? Till I find the way out I’ll want to be the one using the silk toilet paper. This book confirms a few of the suspicions I had already about the Finance world.

I highly suggest this book and give it five stars, why because it is a new ideas and it has kept me thinking about our finical system. IF you invest you money in the market, invest your time in this book.

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  • Jamie
  • 22-05-18

Audio by author/ lots of great info/ ez understand

You've probably thought there's something fishy going on with stocks & their prices and you'd be right. Read this before buying any stock educate yourself 1st (also this book is not a bunch of conspiracy theories, instead it's just honest info people do know about where stock prices comes from)

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  • Bernadette
  • 04-12-20

Very revealing truth about the stock market

easy to finish
engaging
stock market myth debunked
good material
solid supporting facts and evidence

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  • Michal
  • 02-12-20

very valuable knowledge

being a lay person in finance I hardly could believe it. One small step for a more just world.

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  • Gregor
  • 27-06-20

Brilliant and informative book!

l learned so much for this book.

Highly recommended for anyone wanting a better understanding of the stock market and just what an horrendous scam it really is.

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  • Anonymous User
  • 31-05-20

PHENOMENAL

as of in the mits od Corona Crisis influence we can watch the bitter truth reveal

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  • Beto
  • 13-12-19

Great Book!!

If anyone who is a Finance major and is spectacle of the markets or if your not in the finance world this book ensure your gut feelings. Very well written

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  • Mark D. Henson
  • 08-11-19

Refreshing Perspective

Great, simple book, yet eye opening even for market veterans. Ponzi schemes only happen to 'the other guy' but perhaps that could be you someday. Read this book and change your programming.