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rhett o rick

(55,981 posts)

10. Did you ask yourself where that added value came from?

Reply to dmallind (Reply #7)

Tue Jan 24, 2012, 04:47 PM

Jan 2012

Did the intrinsic value of the stock increase? No, not if it was common stock. The popularity increased. And if you are lucky enough to sell out while the popularity is high, then you win, just like you would picking the right number on roulette. And as long as the overall popularity of stocks goes up, many people will see their stock’s values go up. These increases in popularity are called bubbles and sooner or later they all break. And during these bubbles, it is not zero-sum, but over time, when you include the bubbles breaking, it is zero-sum because no wealth has been created.

I am in way over my head here, but this is how I see it. Best of luck to you.

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Top Hedge Fund Returning 45% Under Julian Robertson’s 36-Year-Old Disciple [View all] Snake Alchemist Jan 2012 OP

That isnt created wealth, that is stolen wealth. Wealth like that is zero-sum. rhett o rick Jan 2012 #1

Not at all - somebody perhaps lost the opportunity of that amount - not that amount. dmallind Jan 2012 #2

Please see my post #4. nm rhett o rick Jan 2012 #5

Getting it wrong there too. dmallind Jan 2012 #7

Did you ask yourself where that added value came from? rhett o rick Jan 2012 #10

And that makes it zero sum how? dmallind Jan 2012 #11

Let me ask you this. Are common stock shares related to the actual monetary value of the company? rhett o rick Jan 2012 #12

Not sure that is the case. Snake Alchemist Jan 2012 #3

Unless you are buying stocks directly from a company, investing is really rhett o rick Jan 2012 #4

So eliminate the stock market and allow companies to raise their own capital? nt Snake Alchemist Jan 2012 #6

I dont have a problem with the stock market existing as long as they are honest with the public. rhett o rick Jan 2012 #8

Ponzi scheme? Insider info? Gray-area computer programs? Blue_Tires Jan 2012 #9