In April, 2019 I published a column that likened investing in Lyft and Uber to putting your money in a Ponzi scheme — those who got in early and got out quickly enough would make money and the rest of the investors, namely those who bought the stock on the public market, would eventually find themselves without chairs when the music stopped. Specifically:

Profitability is tied to today’s reality while stock prices are founded on tomorrow’s hopes and dreams.

I still view companies that lose hundreds of millions of dollars on revenues of billions of dollars without a demonstrable, practical, believable plan how and when they will be profitable as legalized Ponzi schemes.

Anyone can have sales of billions of dollars if they are selling ten-dollar bills for eight dollars, but that’s not a real business. Selling anything at a loss without a credible plan how you will tap future economies of scale to become profitable is a fool’s game.

— David Grace

Graduate of Stanford University & U.C. Berkeley Law School. Author of 17 novels and over 200 Medium columns on Economics, Politics, Law, Humor & Satire.

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