Dave Pollard writes in ‘The Stock Market as a Ponzi Scheme‘:
“… the IPO is a scam by which an aptly-named ‘syndicate’ of investment firms (‘underwriters’) buy a mass of shares from the company ‘going public’, at about half the price per share they know they can flog them to gullible investors, many of whom rely on these very brokers for investment advice …”
Mark Cuban writes on ‘The Stock Market‘:
“In July of 1998, my partner Todd Wagner and I took our company, Broadcast.com, public with Morgan Stanley [...] Of the 63 companies and 400-plus participants we visited, I would be exaggerating if I said we got 10 good questions about our business and how it worked [...]
if the fund industry spent billions to tell you to buy and hold baseball cards, I am willing to bet we would talk about the fundamentals of baseball cards instead of stocks [...] When Broadcast.com went public, we raised a lot of money that certainly helped us grow as a company. But once you get past the raising capital part of the market, the stock market becomes not only inefficient, but as close to a Ponzi scheme as you can get [...]
Volume, The Number, whisper numbers, insiders granting themselves millions and millions of options – these are the games that Wall Street plays to keep on enriching themselves at the expense of the public. I know this. I have tried to tell people to be careful before they turned over their life savings and their financial future to someone whose first job is to keep their job, not make you money.”
Mark Cuban writes on ‘Why do people fall in love with stocks?‘:
“CNBC and its competitors have become shopping channels for stocks, bonds and mutual funds. Which is exactly why I love to go on the network. I love to call bullshit on whoever is on there with me [...] What gets me even worse are the big name guys who come on like all they have is an honest opinion to share. [...]
I brought up my position [with Mario Gabelli] that the investment theme of buy and hold is nothing more than a sales pitch [...] I know the fund is down 12 pct Mr. Doe, but that happens in a buy and hold strategy. Over the last 80 years
Mr Gabelli disagreed. He responded with the omnipresent retort to all things stocks, Warren Buffet buys stocks. Yes. Mr. Gabelli, you are right. At that time he did. But he doesnt buy 100 or 1k shares at a time [...] Mr Buffet buys enough shares to have influence and in many cases control. Can the average investor do that? Can the typical fund do that? To which Mr. Gabelli responded with the evil eye … ”
Nicholas Carr writes in Wired : Want to Piss Off a CEO?
“The IT industry is looking more and more like a traditional, mature manufacturing business. Plagued by undifferentiated products, global overcapacity, and falling prices, hardware and software companies are consolidating, shifting production offshore, and making money on maintenance and other fee-based services. They’re competing on cost rather than innovation and features.
In public, industry CEOs may continue to exercise their Peter Pan complexes, pretending that the IT business will never grow up. But behind the scenes they’re dismantling Neverland piece by piece.”