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 shares.
But Cuban was not always an experienced investor.
In fact, “I learned some expensive lessons when I started trading stocks,” said Cuban on Tuesday during a “Ask Me Anything” session on Reddit. “It was painful.”
Cuban responded to a user asking for advice for those who recently lost money amid the commercial frenzy of GameStop, as AMA was hosted by subreddit WallStreetBets, the same group that made headlines for helping to raise the stock price of the video game retailer .
At that time, “[I] I tried to learn what I thought was right and wrong, “said Cuban. But”[r]now, right here. The game is changing. “
For his own investments, when deciding whether to hold or sell a stock, “BTC HODLers are a great example to follow,” said Cuban, referring to bitcoin investors who maintain their position in the cryptocurrency. “Many bought at the highs in 2017 and saw a drop of 2/3 or more. But they held on because they believed in the asset.”
The same thought applies to actions.
“When I buy a stock, I’m sure I know why I’m buying it. So I do HODL until I know something has changed,” he said. “The price may go up or down, but if I still believe in the logic that made me buy the asset, not seeing it. If something has changed that I didn’t expect, then I try to sell.”
Cuban admits that trading stocks “is not easy”, but “it takes a lot of time and brain,” he said in response to another Reddit user.
“As always, DO THE WORK,” he said.
Disclosure: CNBC owns exclusive off-cable rights to “Shark Tank”
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