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In short, it works because when time not ticking, your company valued equal as how much money was investment at start, so if you make 1 million $ company with 10k bonds, 1k bonds worth 100k, but when you starting buying back, value go upwards. So with your company money, you make this bonds more valueable, so you make personal profit here. With your personal profit, you make new company, make your bonds again more valueable, sell new ones, buy back old ones, what money left at company merge with super high price, so what you bonds bought at 1x, can be 2x, so you doubled your money. Always take a loan, because it's free money to spend buying back bonds/merge with your last company.