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Investor Mark Cuban made billions of dollars during the dot-com boom by hedging his portfolio after selling his company, Broadcast.com, to Yahoo in 1999 for $ 5.7 billion in stock.
But Cuban has not always been an expert investor.
In fact, “I learned some expensive lessons when I first started trading stocks,” Cuban said Tuesday during an “Ask Me Anything” session on Reddit. “It was painful.”
Cuban had responded to a user asking for advice for those who had recently lost money amid GameStop’s commercial frenzy, as the AMA was hosted by the WallStreetBets sub-reddit, the same group that made headlines. newspapers for helping the video game retailer’s share price surge.
At the time, “[I] I tried to learn what was right and what was wrong, “Cuban said. But”[r]Eight now, here. The game is changing. “
For his own investments, when deciding to own or sell a stock, “BTC HODLers are a great example to follow,” Cuban said, referring to bitcoin investors who hold their position in the cryptocurrency. “Many bought at the high in 2017 and saw it drop 2/3 or more. But they held on because they believed in the asset.”
The same reasoning applies to actions.
“When I buy a stock, I make sure I know why I’m buying it. Then I HODL until I learn something has changed,” he says. “The price can go up or down, but if I still believe in the logic that led me to buy this asset, I don’t sell. If something has changed that I wasn’t expecting, then I’m looking to sell. “
Cuban admits that trading stocks “is not easy” but “takes time and brain,” he said in response to another Reddit user.
“As always, DO THE JOB,” he says.
Disclosure: CNBC owns the exclusive off-grid cable rights to “Shark Tank”.
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