Very true. I know several people who would be great to work with in an MLM business, but there are definitely people out there who are absolutely horrible. My neighbor is involved with an MLM that is a rubber stamp business and her upline is horrendous. The only reason she is still involved is because she truly enjoys stamping. Once she moves to Austin, she is going to interview people to find just the right upline.
Actually, Rob, your analysis supports Cuban's article. There's a high degree of marketing of shares. The shares are the product. Not the business. He's challenging the notion that a stock price reflects the present value of cash flows, or the relative strength of the business itself. This is how it's sold to the public. He argues that it's a bit of a farce in that what's often going on behind the scenes is 'creating demand.' Demand for the shares -- to push the price up given the supply available. (that's the ponzi factor. Once they can no longer continue to up the demand, the shares will fall -- independent of the success of the underlying business) He also notes that insiders leak cheap paper to the market, thereby enriching themselves on that demand wave. Lots of money to made in the game -- no doubt about that. And not 'random' -- i agree. But not the model we're being sold either.
I remember the Datek craze, etc in the late 90's before the bubble burst...Everyone was doing it... I did a little and lost...I mostly lost on my Employee Stock Purchase Program (ESPP)...It's a great program if you immediately sell and get the immediate 15% discount less taxes on the gain...I didn't on some of mine, and let's just say that I'm able to tack the capital loss for a number of years...
Similar experience go rrj, had $3000 go to $50 at one place, then had $15000 go to $3000, then never again went for an ESOP if I had a choice. This was years before Enron. For some reason I am reminded of Homer Simpson in season twelve, episode nine: Homr, when he buys 500 shares of Animotion.
Statistical analysis of individual investors show - we mostly suck. http://slate.msn.com/id/2099695/ The 4 Percent Solution Why you're such a lousy investor. By Ed Dravo Posted Friday, April 30, 2004, at 4:57 AM PT It is a principle of American life—practically gospel—that you know better than anyone what to do with your money. The idea of privatizing Social Security is based on the notion that you'll invest your savings better than the government would. The ascendance of 401(k) plans over guaranteed employee pensions has the same foundation—that employees will make informed and prudent decisions when they invest. . . .
