Investor Mark Cuban made $ 1 billion during the dot-com boom, covering his portfolio after selling his company, Broadcast.com, to Yahoo in 1999 for $ 5.7 billion in stock.
But the Cuban was not always an expert investor.
In fact, “I learned some expensive lessons when I started trading stocks,” the Cuban said on a “Ask me anything” session on Reddit on Tuesday. – It was painful.
The Cuban responded to a user asking for advice for those who recently lost money due to the GameStop trading frenzy, because AMA was hosted by the subreddit WallStreetBets, the same group that made headlines to help raise the share price of the video game retailer.
Back then, “[I] I tried to find out what I did wrong and what I did wrong, “said the Cuban. But”[r]now, right here. The game is changing. “
For their own investments, when deciding whether to hold or sell a stock, “BTC HODLers are a great example to follow,” said the Cuban, referring to bitcoin investors holding their position in cryptocurrency. “Many bought to the maximum in 2017 and watched it drop by 2/3 or more. But they stayed because they believed in assets.”
The same thinking applies to stocks.
“When I buy a stock, I make sure I know why I’m buying it. Then HODL until I find out something has changed,” he said. “The price may go up or down, but if I still believe in the logic that led me to buy a good, I don’t sell. If something I didn’t expect changed, then I look at the sale.”
Cubanez admits that trading shares “is not easy”, but “time and brain consuming”, he said in response to another Reddit user.
“As always, DO THE WORK,” he said.
Disclosure: CNBC holds the exclusive cable rights outside the network for Shark Tank.
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