Evidence of crooks, dupes, and gamblers in the stock market

You cannot make this stuff up. A bottled tea company named after a famous cocktail (Long Island Iced Tea Corp.) changed it's name to Long Blockchain Corp. in a successful effort to raise capital for its failing enterprise. 

You read that right. It worked, and in one day, share prices rose about $35 million. By that measure, parents should name a child Bitcoin, thereby ensuring future wealth. 

This whole thing serves to prove three realities that you might want to remember if you want to build wealth. Crooks, dupes, and gamblers are weeds in the fertile field of the stock market. 

Because it is the criminal class that uses titles and company names to deceive, one is a fool to invest in a tea company claiming to know something about an accounting algorithm. Offering one thing by advertisement or title (in this case, the cocktail Long Island Iced Tea) while actually selling another (a non-alcoholic tea blend) and magically pivoting to yet another wildly different item (blockchain technology) is a hallmark of con artists. That's not to say this company is filled with cons, (perhaps they're merely confused regarding their business model) but one does wonder if smoke indicates fire. Most of us who have lived past our teens know that it's best to stay away from con artists and confused business owners.

Second, people who invest in a product or idea, the substance of which they do not understand, are often duped. Stay away from companies you do not understand, and this would include anyone who believes a failing tea company can add value to one's portfolio via a dynamically complex system like blockchain. You're most likely to get burned when you're over your head. These guys may be of the very rare tribe who can pull off such a radical pivot, but the odds are way out of their favor. 

Third, playing the stock market in this case resembles gambling more than it does investing. The article I read states, "The sudden boost to share prices,... seems to reflect partly a bet that these stocks will rise enough in the short term that someone else will come along and pick them up at a higher price." (Wall Street Journal, 23 Dec 2017) That line describes a Ponzi scheme. Such gambling is no more investing than if one stumbled down to his local bar, found a bookie, and wagered on the winner of tomorrow's NBA game. 

While I do care about crooks, I do not really care if people are stupid with their money. After all, it's theirs to do with as they please. Nor do I really care much about gamblers--again, it's their game to play, not mine. 

Just don't whine, ask for more restrictive legislation, or worse, ask for a bailout to cover your losses.