Fucked is at the border, but there's no insulting going on here that is not my intention. The word is just used to illustrate a concept a little more violently. Strange is an insult, it was personally directed at me. While, technically it's not an insult... the intent is there and is detectable. I suggest you don't use it the next time you want a discussion to continue.
>Buying a share is not ripping someone off.
I never said buying a share is ripping someone off. I'm saying watching a share grow in value is ripping someone off.
Also I'm not talking about bidding. I'm talking about the intrinsic value of the share. There is value outside of bidding. The bidding correlates with the intrinsic value but is not a completely accurate reflection of it.
It's hard to describe what intrinsic value is. But the concept exists outside of this conversation. Look it up if you never heard of it.
So to bring it full circle. The worker contributes work that increases the value of the company which in turn increases intrinsic value of the share. The owner of the share benefits from this increase in value while contributing zero work on his end.
If you are rich enough, you don't even have to work anymore. Simply growing your money endlessly is enough. Nothing in the universe comes for free and such people don't have to work because that work is being done by others in their stead.
Over a long term horizon or even in the short term through dividends... massive intrinsic value can be extracted from these assets.
Again though, the person buying the share and the person selling the share, and even a third party (who offers loans) all come to an agreement that the best option at the moment is to sell the share. Loans are available to the would-be seller, if the sale of the share would actually screw them. Loans and fundraising rounds are therefore in competition -- and it's not like a company hasn't been built on loans before (Cisco was built off of credit card debt in the beginning). The seller makes a judgment about near-term vs long-term pros and cons, deciding where to allocate most of the value.
>Buying a share is not ripping someone off.
I never said buying a share is ripping someone off. I'm saying watching a share grow in value is ripping someone off.
Also I'm not talking about bidding. I'm talking about the intrinsic value of the share. There is value outside of bidding. The bidding correlates with the intrinsic value but is not a completely accurate reflection of it.
It's hard to describe what intrinsic value is. But the concept exists outside of this conversation. Look it up if you never heard of it.
So to bring it full circle. The worker contributes work that increases the value of the company which in turn increases intrinsic value of the share. The owner of the share benefits from this increase in value while contributing zero work on his end.
If you are rich enough, you don't even have to work anymore. Simply growing your money endlessly is enough. Nothing in the universe comes for free and such people don't have to work because that work is being done by others in their stead.
Over a long term horizon or even in the short term through dividends... massive intrinsic value can be extracted from these assets.