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Technology - - (+6|-0)
The (Overdue) Collapse of Software Companies (14:13)(youtu.be)
4 commentsbyRickSanchez
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[-]x0x73(+3|0)

In the case of Figma that's just because IPOs are a scam in general. It's more of a ponzi scheme than Bitcoin is (and USD more than that). A: "Sweet, after I invest in you how will I get my money back." B" "Oh, someone else will buy it off of you." Without divedends stocks make no sense as a security.

When you participate in an IPO you just give a company free money with no future liability for it, besides their reduced ability to do it again.

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[-]RickSanchez2(+2|0)

I have ROTH IRAs and 401Ks most of my money is invested in with a wide diverse investment of stocks and bonds. Am I at risk or is it only the startup IPO companies that are risky?

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[-]x0x72(+2|0)

IDK. I'm just saying dividendless stock doesn't make sense. What makes sense and what works are two different things. But if you buy efficient market theory the two should be forced to agree eventually.

Part of what makes it work as an investment is the idea that what matters isn't what make sense vs not in terms of what you should buy, but instead deltas in fitness. If dividendless stock doesn't make sense then it should make about as much sense in five years as it does now. So it is stable.

The problem is if society runs into any "more real" scenarios where people discover the value of something is what can be done with it practically, or at the very least how much it can be sold for to someone who can do something practical with it. Then people will learn fast that the PE ratio on a stock that is practically guarenteed to never result in a cash flow doesn't improve the practicality of something that does nothing.

At least the bonds have some financial rationality behind them. I'd diversify further and get some commodities.

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[-]JasonCarswell2(+2|0)

Not only on purpose, this will force us to be enslaved and rely on A.I.

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