By his definition of a Ponzi scheme... Every facet of commerce would be a Ponzi scheme. Including currency itself.
As entrepreneurs we know that something is worth EXACTLY what someone is willing to pay for it. Nothing more. Nothing less. Utility, profitability, scarcity change these perceptions of intrinsic value, but not intrinsic value itself.
The fact that dividends aren't present in some stocks doesn't change that fact. Some companies, like Apple recently, returned money to the investors via a buyback. How? They basically pulled shares off the market making less outstanding shares represent the perceived market value for Apple.
Now he raises a decent point about liquidity. You couldn't have the entire stock market sell today and get all 30 trillion out. It's impossible because in order to sell, someone has to buy.
I do think an investor should understand that before getting into the markets, but it's still an investment, not a ponzi scheme.
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