Wednesday, July 1, 2015

Money Is Exactly Like Religion

For true adherents both are dependent on little more then the belief in them. Faith is all that is required. It's most certainly the case when it comes to money. How else can it be explained why investors continue to pour tons of money into companies bringing in oodles of money but still claim they aren't making any?

Uber: $470 million in operating losses on $415 million revenue.
Huffington Post: Worth $1 Billion? Yet hasn’t produced an operating profit
YouTube: $4 Billion revenue in 2014, Doesn't Make a Profit for Google
Shazam: Worth $1 Billion, despite never making a profit
Spotify: 2014 revenue $1.3b--hasn’t made a profit in 3 years
Etsy: is valued at $3.6 billion,. Still no profits to show for it
Amazon: Stock valued at nearly $140 billion yet not likely to ever earn a profit
If these companies shares weren't publicly traded on the market these failures could never exist on their own. It's only the faith in the buying public that allows them to continue. It's one hell of a game. A game that would cease to exist and will for any company whom the traders no longer believe in good faith they could receive a return on their investment through the trading of shares on them. Or perhaps these companies are just exploiting every damn loophole in national & international laws to evade taxes.

Either way this a very unsound way for investing, reaping taxes or building a strong international economy. At some point there will come a time a whole bunch of people will lose money when the music stops. Several or all of these could financially collapse at anytime once investors lose faith in their ability to make money from any one or more of them.

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