yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Stock are not backed by the company. Simple Logic


2m read
·Nov 3, 2024

Busted open, our stock went down to six. It went from 113 to six in less than a year. That whole period is very interesting because the stock is not the company, and the company is not the stock. Stocks are not backed by the company; that is why investors don't know how much their stocks are backed by.

If something is backed, it means you're going to get a definitive amount of money back for whatever you're holding, or there's some kind of accessible collateral. So if Google is trading for two thousand dollars, and the assets on their balance sheet amount to something like a thousand dollars a share, it would be fair for you to assume that Google stocks are backed by a thousand dollars.

The problem is, that's not how it works. If you look at their SEC filings, there isn't a single public company that says they will back their stocks by some defined price. So in practice, they don't have to give you anything.

Now, hypothetically speaking, stocks are backed in the sense that if Google goes out of business, liquidates, pays back their debts, and insiders, whatever's left over will go to the shareholders. The problem is, when the hell is that going to happen? And how much is going to be left over in this hypothetical liquidation?

The potential for a future liquidation or buyout are considered unfalsifiable ideas. No one can show to be right or wrong. It is pseudoscience nonsense that cannot be used in a logical debate. Hypothetically speaking, anything can happen, but you can't use a hypothetical idea to debate the observable fact that if Google crashes tomorrow, as per their SEC filings, they have no definitive obligation to pay their shareholders anything for the stocks they are holding.

More Articles

View All
How to Sell Anything by Tony Robbins *rare video
So all you have to do to persuade someone is do two simple things. One, you have to identify, and ideally that first step you’re going to do is you’re going to identify the buying state. One, and two, is you’re going to anchor it—anchor that state to your…
Charlie Munger: We're Playing With Fire (Interview)
[Music] Hey guys, welcome back to the channel. We got something really cool to talk about today: Charlie Munger. As you guys know, one of my favorite investors, he recently did a 45-50 minute interview with the California Institute of Technology, which i…
Guardians of the Okavango | National Geographic
I’m a guardian of the guardians. I feel a duty to protect these guardians from what is the outside world, encroaching. I work within the National Geographic Okavango Wilderness Project as the community liaison with the people living in these Angolan highl…
If I Had To Start Over, This is What I Would Do #shorts
Well, what a great place to get a question like that, right in the heart of Beverly Hills. You can’t come here without any money; you’ve got to make money first. And the way you do that, if you had nothing, I would use the advantage of the internet that …
Open primaries, closed primaries, and blanket primaries | US government and civics | Khan Academy
Let’s talk about primary elections, which are often known as primaries. One way to think about them is that they’re just preliminary elections used to get down to a fewer number of candidates. A very simple example would be, let’s say there is a congressi…
How Much Money I Make Selling Merch
What’s up guys? It’s Graham here. So, about 10 months ago, my buddy and I met up for lunch and came up with a wild original concept that’s never been done before here on YouTube: selling merch. After all, it seems like pretty much every YouTuber is doing …