Capital: Valuations and Market Caps 101

In 1999, I became a millionaire on paper by selling shares in a company that I had created for the express purpose of selling the shares. That ought to sound bizzare to you, and it is – it’s one of the weirdest parts of corporate capitalism. The entire thing feels like a scam, except that the money is very real, or it’s not, depending on what happens.

[Read more…]

Capital: Asset Stripping and Leveraging 101

A friend of mine retired from an IT executive job and she and her husband decided to become wealthy capitalists in their retirement. Since the evils of capitalism are a frequent topic here on FtB, maybe it’s a good idea to do a quick explainer of how a few of those evils work. These are the simple ones, and I’ll describe them as cleanly as I can so you can understand what’s going on when you hear about it elsewhere.

[Read more…]