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After selling his company to Yahoo for $5.9 billion in Yahoo stock, Mark Cuban personally architected a hedge of his enormous wealth with synthetic indexes, tak
by chunkbot 16y ago
After selling his company to Yahoo for $5.9 billion in Yahoo stock, Mark Cuban personally architected a hedge of his enormous wealth with synthetic indexes, taking a $20 million cut for six months of protection before he could hedge the actual Yahoo shares.
Compare this to John Z. Rigos, who sold his dotcom for $42 million and walked away with $8 million of stock. Between the day of the sale until the day when he could legally sell his shares, the stock tanked, and Mr. Rigos was left with virtually nothing. Mr. Cuban came from a poor Jewish family; Mr. Rigos from a poor Greek family. Same story, two outcomes...
Today Mr. Cuban's net worth is more than $2 billion. I'd say he knows more than "little to nothing" about the market.
- whyme 16y agoOne would like to think.
- mattmaroon 16y agoHe also ran a successful hedge fund if memory serves me. From his writing you could easily get the idea that he is more opinionated than informed, especially since he seems to jump from talking about stocks to bonds and back again as if he didn't know the difference between them. I'm pretty sure it's just because he is such a poor writer though. While I don't ever agree with someone who thinks they can time the market, he certainly is knowledgable.