Investor Mark Cuban earned 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.
But Cubans were not always an expert investor.
In fact, ‘I learned some expensive lessons when I first started trading stocks,’ Cuban said on Tuesday during an ‘Ask Me Anything’ session on Reddit. “It was painful.”
Cuban responded to a user asking for advice for those who have recently lost money in the midst of the GameStop trade chase, as the AMA was hosted by subreddit WallStreetBets, the same group that made headlines to help the video game’s share price rise.
At the time, “[I] trying to learn what I got right and wrong, “Cuban said. But”[r]now, just here. The game is changing. ‘
For its own investments, when deciding whether to hold or sell a stock, ‘BTC HODLers is an excellent example to follow’, Cuban said, referring to bitcoin investors holding their position in the cryptocurrency. “A lot of people bought at the highs in 2017 and saw it drop by 2/3 or more. But they kept going because they believed in the asset.”
The same thinking applies to stocks.
“When I buy a stock, I make sure I know why I am buying it. Then I HODL until I hear that something has changed,” he said. “The price may rise or fall, but if I still believe in the logic that made me buy the asset, I am not selling. If something has changed that I did not expect, I look at the sale.”
Cuban acknowledges that trading stocks ‘is not easy’, but ‘time-consuming and brain-chilling’, he said in response to another Reddit user.
“DO THE WORK AS ALWAYS,” he said.
Disclosure: CNBC owns the exclusive cable rights outside the network on ‘Shark Tank’.
Do not miss: The best credit cards for building credit of 2021
Sign out: