Investor Mark Cuban earned billions of dollars during the dot-com boom covering his portfolio after selling his company, Broadcast.com, to Yahoo in 1999 for $ 5.7 billion in shares.
But Cuban was not always an expert investor.
In fact, “I learned some expensive lessons when I started trading stocks,” Cuban said Tuesday during a “Ask Me Anything” session on Reddit. “It was painful.”
Cuban had responded to a user asking for advice for those who recently lost money amid the GameStop trading frenzy, as AMA was hosted by WallStreetBets, the same group that made headlines to help raise stock prices. video game retailer.
Then “[I] I tried to learn what I did right and wrong, “Cuban said. But”[r]right 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,” Cuban said, referring to bitcoin investors who maintain their position in cryptocurrency. . “Many bought the highs in 2017 and saw it fall 2/3 or more. But they stayed because they believed in the asset.”
The same thought applies to actions.
“When I buy a stock, I make sure I know why I buy it. Then I go to HODL until I find out something has changed,” he said. “The price can go up or down, but if I keep believing in the logic that made me buy an asset, I don’t sell. If I changed something I didn’t expect, I would try to sell.”
Cuban admits that operating with stocks “is not easy,” but “consumes a lot of time and consumes brains,” he said in response to another Reddit user.
“As you always do the work,” he said.
Disclosure: CNBC owns the exclusive offline cable rights to Shark Tank.
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