Investor Mark Cuban made billions of dollars during the dotcom boom by hedging his portfolio after selling his company Broadcast.com to Yahoo in 1999 for $ 5.7 billion worth of stock.
But Cuban was 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 had responded to a user asking for advice for those who recently lost money during GameStop’s trading frenzy, as the AMA was hosted by subreddit WallStreetBets, the same group that made headlines for helping the video game store share price.
Back in the days, “[I] tried to learn what I got right and wrong, “said Cuban. But”[r]Good now, here. The game changes. “
For its own investments, when deciding to hold or sell a stock, “BTC HODLers are a good example to follow,” Cuban said, referring to bitcoin investors who are holding their position in the cryptocurrency. “Many bought at the high prices in 2017 and saw it fall 2/3 or more. But they held on because they believed in the right thing.”
The same idea applies to shares.
“When I buy a stock, I make sure I know why I’m buying it. Then I HODL until I find out something has changed,” he said. “The price can go up or down, but if I still believe in the logic that drove me to buy his assets, I’m not selling. If something changes that I didn’t expect, then I’m looking at selling.”
Cuban admits that stock trading is “not easy,” but “time-consuming and brain-consuming,” he said in response to another Reddit user.
“As always, DO THE WORK,” he said.
Disclosure: CNBC owns the exclusive non-network cable rights to “Shark Tank.”
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