4 ms·
Can someone explain how Amazon is different (in investor mindset, not legality) from a Ponzi scheme? It seems like retail companies (and even some startups) exi
by sudhirj 11y ago
Can someone explain how Amazon is different (in investor mindset, not legality) from a Ponzi scheme? It seems like retail companies (and even some startups) exist solely by churning investors with new money. Everyone invests based on expected profit at the end of the rainbow, and a lot of money is made selling to the next set of investors who want to carry on rainbow-chasing.
If Amazon were to stop and start making a profit, wouldn't they immediately be undercut by the next generation of quasi-ponzi companies who are now willing to sacrifice short term profits?
- sudhirj 11y agoIt seems like the economic equivalent of getting on the tiger's back. You just have to hold on and keep going.
- smackfu 11y agoIt's not like Amazon is issuing a lot of new stock, so they aren't making any money if the stock changes hands. https://ycharts.com/companies/AMZN/shares_outstanding https://ycharts.com/companies/AMZN/shares_outstanding