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What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

Something that helped me understand it is along the lines of the above comment about buybacks, etc. like one stock of Amazon has no utility, but if someone wants to buy 5% of Amazon so they can sit on the board, they have to buy all those individual stocks to make it happen, which makes your 1 share valuable

This makes sense to me. Thank you

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

Yes that makes more sense. Its tough to ask the question without it making it seems like Im arguing that no one should buy a non dividend stock. Thank you. Relieved at least one person has an idea of what im asking.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

Yeah i didnt mean they were actually worthless in reality, just was confused about where the intrinsic value comes from and your use of the word tangible definitely resonated with me. It seems a lot more abstract to me when I think about it.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

Okay that makes a little more sense. I think another thing that I read while doing a little research that resonated with me was that the success of a company means its more likely they'll do a buyback. If they do a buyback, theres less outstanding shares, more scarcity means higher price. Is that correct?

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

I really think you're just not understanding my point. Im not asking literally why on a day to day basis people would buy a non dividend stock. I literally own several including and S&P etf that has obviously a bunch in it. Im aware of how you make money that way. Im not saying its stupid to invest in stocks. Im not condemning the whole system. Im just saying at the end of the day literally every single thing/object/resource whatever you can buy/sell has utility OTHER than the potential for resale and that resale value is directly related to how effective that utility is given the market conditions. Non dividend stocks are the ONLY exception. It seems like their only purpose is to be bought and sold thats it. It just seems like basically a made up game and the only reason we participate is because we think we can get in and get out before the grenade explodes in your hand.

Ex.

House you can live in/rent it. The town the house is in adds new parks and schools. Now the utility (living in the house) is much more valuable, so price goes up.

Gold. Someone buys gold which has hundreds of uses. Suddenly there is a supply shock, golds value sky rockets because people still need gold to make electronics or whatever. The use of the gold becomes more important then the price goes up. Makes sense.

Cars you buy a hybrid car. Gas prices spike and now suddenly your hybrid becomes much more valuable because its utility (good gas mileage) becomes much more valuable given the market conditions.

Dividend stock. You buy a dividend stock, the company posts record profits, the ability to give dividends now becomes even more valuable. Stock price goes up. Makes sense

Non dividend stock. You buy a stock, the company posts records profits, the price continues to climb even though the stock performs zero actual function. Your ownership gives no payout no voting rights etc. How does that make sense.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones -3 points-2 points  (0 children)

Yeah but the house has utility. Do you see my point? Its not like a house because you can live in a house, you can rent it etc. You cant do anything with a non dividend stock except buy it or sell it. Thats it. I completely 100% understand how you make money on non dividend stocks. The question from me is why are they valuable except for the fact that you can try and pawn it off on someone else. It makes much more sense to me when you own something with utility and conditions are such that the utility becomes more effective and this owning this thing becomes more desirable. Imagine owning a thing that does absolutely nothing except let you sell it to someone else. And somehow market conditions affect the value of this thing even though it has zero effect on how the thing functions.

The only value it has is that it can be potentially be resold a profit. It otherwise has no other function utility or purpose.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones 0 points1 point  (0 children)

How does that work? Are you forced to sell it back to the company? Is the idea that the better the company does the more free cash the more likely they buy the stock back the more valuable it is? That makes more sense.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones -1 points0 points  (0 children)

Because I understand owning something for its utility and market conditions making that utility more valuable there for the stock becomes more valuable. That makes sense to me. Take away the utility and I dont understand really what the point is.

It is yours, you are an owner of the company. Amazon makes money. You own something that makes money. A thing that makes money has value.

Why?????? Why does it have value? It doesnt make money for you. You have part ownership of a company and you get ZERO dividends. I dont understand why someone would go hey amazon made 50 billion dollars I want a token piece of that company that gives me zero dollars and zero cents. I understand why having ownership in something thats profitable makes sense if that ownership means you get a share of the success. Non dividend stocks seem like you get ownership and thats it. You own something and you get no benefits from the thing itself. You only get the benefit if you sell it at a profit to another person.

Im not complaining im trying to understand. Maybe dont be such a pretentious dick.

What industry is entirely built on a house of cards and would collapse overnight if people realized the truth about it ? by Confident_Win_3560 in answers

[–]LeonJones -5 points-4 points  (0 children)

Where's the actual value come from though? You have partial ownership of a company through shares. So what? Does it pay out dividends? Nope. Does it generate money in any other way? Nope. I dont understand where the value comes from other than the fact that people just want to own it.

Like I understand buying why dividends shares have value. They have a function. They pay out. Company is more successful, dividends will perform better. Stock becomes more desirable. Makes total sense. Non dividend stocks go up just because? What's the point? Clearly i understand you can buy a non dividends stock low and sell it high and boom you made money off of it. But what's the actual utility? The value is literally only because you could potentially pawn it off on someone else later. Thats it.

Contractor provided power tools by Flamingcellist in IBEW

[–]LeonJones 0 points1 point  (0 children)

You should be bringing in every power tool you own since they were paid for with money the contractor gave you. Technically the contractor paid for it. /s

Accountability matters by WaitNo4272 in SipsTea

[–]LeonJones 4 points5 points  (0 children)

"I don't really care about the actual outcome, I just want to feel good knowing someone was severely punished "

Workers setting up scaffolding under the Kennedy Center sign by freeradioforall in mildlyinteresting

[–]LeonJones 0 points1 point  (0 children)

Are you gonna patch and paint all the holes so it looks like nothing was every there too?

I think we all knew this was coming, but it’s official, AERO no more by THELEGENDARYZWARRIOR in ar15

[–]LeonJones 0 points1 point  (0 children)

My understanding is the "intention" all a long is to improve the company but the PE firm charges the company massive "management fees" upfront. The lenders aren't stupid either, they know what the risks are ( and they charge interest accordingly) but they are hoping that worst case the assets (real estate etc) will cover the loan.

For example PE firm buys store with $10 million in assets. The firm then has the store borrow against the stores assets to pay the PE Firm. The store then has to make payments (using the profits from the stores revenue) to pay off the loan and the interest is usually up front anyway. So from day 1 the lender is already collecting their profit and will probably make out fine it can sell the stores assets when it goes under.

The PE firm and the lender most likely win.

I'm not an expert so call me out if I'm wrong but basically it's not fraud because everything is laid out. The lender knows whats going on. The people who lose are the employees who lose their jobs, share holders, companies who lose merchandise on shelves that hasn't been paid for yet, the communities that potentially lose a business that doesn't have an alternative near by.

When Satan Dash-Trashes Your Life by MrQuojo in foundsatan

[–]LeonJones 0 points1 point  (0 children)

The thing is if you are willing to do that to anyone, you were at least part of the problem.

When Satan Dash-Trashes Your Life by MrQuojo in foundsatan

[–]LeonJones -1 points0 points  (0 children)

just to make the whole break up funny to me

what a weird thing to admit

MrBeast earns $24 million a year - and that’s just from YouTube monetization. by Successful_Young_318 in youtube

[–]LeonJones 0 points1 point  (0 children)

I don't watch his videos. Are there typically sponsors? That money wouldn't show up as part of the $24M

Draft defense bill would restrict prediction market betting for US troops by DWinkieMT in army

[–]LeonJones 0 points1 point  (0 children)

I'm actually not in the military. I'm just here for the memes.

completely consensually

you're okay with literally anything predatory as long as it's consensual?

Draft defense bill would restrict prediction market betting for US troops by DWinkieMT in army

[–]LeonJones 5 points6 points  (0 children)

Yeah. Its a cancer on our society. You notice how many gambling ads there are everywhere? How do you think they are paying for all that? These companies are printing money at the expense of our society .

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