5 ms·

For some reason, despite him being extremely well-accomplished, I just can't take any advice he gives seriously, compared to Bill Gates or even Ray Dalio.

cre8 9y ago
Probably the reason manifests through his parody in the show, Silicon Valley.
helthanatos 9y ago
I was thinking the same thing. It really makes me wonder whether he's trying to throw people off or if he got to where he is through dumb luck.
jacquesm 9y ago
Mark Cuban got supremely lucky selling broadcast.com to Yahoo in the deal that best illustrated the crazy boom years of the .com bubble and believes that this makes him some kind of sage instead of a lottery winner. You just can't compare him to Gates who got where he is today through a combination of luck at birth and supremely hard work (and some questionable business tactics).
- bdcravens 9y ago
  Cuban's stake in Broadcast.com's was worth about $100M before they sold to Yahoo, and since the sale to Yahoo, he's managed to over double his net worth via the Mavericks and his business interests. He may not be Gates, but I think he's more than a lottery winner.
  - plorkyeran 9y ago
    Doubling your money over 18 years is a only 4% rate of return. Not terrible, but also not impressive.
    - adventured 9y ago
      His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. $1.1 billion to $4.08 billion [1]. His primary business holding, the Dallas Mavericks, has increased in value from $285 million to $1.9 billion [2] (per the latest Forbes estimate). For that investment, he has seen a rate of value increase of about 11% per year. That investment stomps the S&P 500 massively (which was at ~1400 when the acquisition closed). [1] https://www.bloomberg.com/billionaires/profiles/mark-cuban/ https://www.bloomberg.com/billionaires/profiles/mark-cuban/ [2] https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-team-values-2018-every-club-now-worth-at-least-1-billion/ https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-...
      - dcdanko 9y ago
        > His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. Very few money managers that are accessible to people with less than 10^8 USD can beat the S&P after fees. Bridgewater, (Ray Dalio's fund mentioned above) regularly gets 12.5% annual returns and they are most notable for being consistent, not high. Pre-2008 some investment banks were getting up to 20%. A billionaire making 7.5% annually is fairly unimpressive if their goal was to make money (which it might not have been for Cuban).
  - jacquesm 9y ago
    8% will double your money in 9 years. It's been almost 20.
  - pkaye 9y ago
    Doubling an investment is not too hard over 20 years.
    - bdcravens 9y ago
      Except he sold his Yahoo stock pretty early so he then had to make decisions on how to invest and grow the cash.
      - pkaye 9y ago
        He just needs to get 4% yield per year to double it in 20 years.
  - dannylandau 9y ago
    I think it was around $1.4B, not $100M -- https://en.wikipedia.org/wiki/Broadcast.com https://en.wikipedia.org/wiki/Broadcast.com
    - bdcravens 9y ago
      That's the sale to Yahoo. From that article: "After the IPO, the company was worth $1 billion, Mark Cuban was worth $300 million" (obviously a little more than the $100m I thought)
      - dannylandau 9y ago
        I think the issue that people have with Mark Cuban's accumulated wealth is that it was during the Internet Bubble, and the stock would have been worthless just a few months later. I think Yahoo basically discounted the price of Broadcast a year later to zero.
      - adventured 9y ago
        Broadcast.com had $100m in revenue for fiscal 1999. Maybe that's what you were thinking of. Cuban's position was worth more on paper at its peak before the Yahoo acquisition. Broadcast.com was acquired for $130 per share, the high that year before the acquisition, was $144 per share. Prior to the acquisition, the stock was trading at $118. Yahoo only paid a 10% premium. Cuban was worth over a billion dollars before the acquisition. https://www.cnet.com/news/yahoo-broadcast-com-sizzle-after-deal/ https://www.cnet.com/news/yahoo-broadcast-com-sizzle-after-d...
      - jondiggsit 9y ago
        Cuban had some very smart bankers at Goldman
  - raldi 9y ago
    He would be wealthier today if he had immediately put everything in an S&P 500 index fund and spent the last 20 years ignoring it.
    - adventured 9y ago
      That's factually wrong. The S&P 500 was 1300 when he sold to Yahoo. He received $1.4 billion of Yahoo (14.6m shares at $95/each). He had to pay taxes on clearing out that position as well, so you can safely assume his after tax position was more like ~$1.1 billion. He very solidly beat the S&P 500. He's worth $4.08 billion today according to Bloomberg (ranked #500 on their global rich list). He has increased his net worth by nearly 4x. The S&P 500 is at 2747. It has just over doubled since April 1999. He'd be missing a billion dollars if he had gone with the S&P 500, including any dividends. He was better off with what he did, he beat the S&P 500 index fund. Not only did he make more money his way, he got to do what he wanted to with his money, such as buying the Mavericks.
    - bdcravens 9y ago
      Sure, though given his investments in startups etc he could easily have lost 90% of it.
    - the_cat_kittles 9y ago
      thank you. this is always something people forget. if you want to claim you are a good business man, you need to show that your businesses do better than an index fund.
IntronExon 9y ago
He’s from the “got lucky” school of billionairing, but he has the ego of a Jobs or Gates. A well funded blowhard in other words; your instincts are on target. That, and evaluating statements on their own (dubious in this case) merit is a good thing, always. Even very smart and accomplished people can say things which deserve careful scrutiny, and may come up short.
- goatherders 9y ago
  Lol. You guys crack me up. He built a company and sold it for a bucket of money. This board talks about trying to do that ALL DAMN DAY. He did it Lol.
  - IntronExon 9y ago
    ...And? I’m not sure what your point is, other than trying very very hard to communicate your supposed amusement.
unclebucknasty 9y ago
It may be stylistic. Cuban tends to opine a lot and sometimes comes across as a blowhard. He's overexposed too. There's something about people like Gates who don't make a lot of public pronouncements. When they speak, you tend to think it's because they have something of value to say (and they generally do). Probably doesn't hurt that they also let their work do most of the talking for them (e.g. Bill and Melinda Gates Foundation).
aidaman 9y ago
Yes, he's not a super genius. He's reasonably smart and good at spotting trends. I take the advice of anyone with a huge grain of salt.

cre8 9y ago

Probably the reason manifests through his parody in the show, Silicon Valley.

helthanatos 9y ago

I was thinking the same thing. It really makes me wonder whether he's trying to throw people off or if he got to where he is through dumb luck.

jacquesm 9y ago

Mark Cuban got supremely lucky selling broadcast.com to Yahoo in the deal that best illustrated the crazy boom years of the .com bubble and believes that this makes him some kind of sage instead of a lottery winner. You just can't compare him to Gates who got where he is today through a combination of luck at birth and supremely hard work (and some questionable business tactics).

bdcravens 9y ago
Cuban's stake in Broadcast.com's was worth about $100M before they sold to Yahoo, and since the sale to Yahoo, he's managed to over double his net worth via the Mavericks and his business interests. He may not be Gates, but I think he's more than a lottery winner.
- plorkyeran 9y ago
  Doubling your money over 18 years is a only 4% rate of return. Not terrible, but also not impressive.
  - adventured 9y ago
    His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. $1.1 billion to $4.08 billion [1]. His primary business holding, the Dallas Mavericks, has increased in value from $285 million to $1.9 billion [2] (per the latest Forbes estimate). For that investment, he has seen a rate of value increase of about 11% per year. That investment stomps the S&P 500 massively (which was at ~1400 when the acquisition closed). [1] https://www.bloomberg.com/billionaires/profiles/mark-cuban/ https://www.bloomberg.com/billionaires/profiles/mark-cuban/ [2] https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-team-values-2018-every-club-now-worth-at-least-1-billion/ https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-...
    - dcdanko 9y ago
      > His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. Very few money managers that are accessible to people with less than 10^8 USD can beat the S&P after fees. Bridgewater, (Ray Dalio's fund mentioned above) regularly gets 12.5% annual returns and they are most notable for being consistent, not high. Pre-2008 some investment banks were getting up to 20%. A billionaire making 7.5% annually is fairly unimpressive if their goal was to make money (which it might not have been for Cuban).
- jacquesm 9y ago
  8% will double your money in 9 years. It's been almost 20.
- pkaye 9y ago
  Doubling an investment is not too hard over 20 years.
  - bdcravens 9y ago
    Except he sold his Yahoo stock pretty early so he then had to make decisions on how to invest and grow the cash.
    - pkaye 9y ago
      He just needs to get 4% yield per year to double it in 20 years.
- dannylandau 9y ago
  I think it was around $1.4B, not $100M -- https://en.wikipedia.org/wiki/Broadcast.com https://en.wikipedia.org/wiki/Broadcast.com
  - bdcravens 9y ago
    That's the sale to Yahoo. From that article: "After the IPO, the company was worth $1 billion, Mark Cuban was worth $300 million" (obviously a little more than the $100m I thought)
    - dannylandau 9y ago
      I think the issue that people have with Mark Cuban's accumulated wealth is that it was during the Internet Bubble, and the stock would have been worthless just a few months later. I think Yahoo basically discounted the price of Broadcast a year later to zero.
    - adventured 9y ago
      Broadcast.com had $100m in revenue for fiscal 1999. Maybe that's what you were thinking of. Cuban's position was worth more on paper at its peak before the Yahoo acquisition. Broadcast.com was acquired for $130 per share, the high that year before the acquisition, was $144 per share. Prior to the acquisition, the stock was trading at $118. Yahoo only paid a 10% premium. Cuban was worth over a billion dollars before the acquisition. https://www.cnet.com/news/yahoo-broadcast-com-sizzle-after-deal/ https://www.cnet.com/news/yahoo-broadcast-com-sizzle-after-d...
    - jondiggsit 9y ago
      Cuban had some very smart bankers at Goldman
- raldi 9y ago
  He would be wealthier today if he had immediately put everything in an S&P 500 index fund and spent the last 20 years ignoring it.
  - adventured 9y ago
    That's factually wrong. The S&P 500 was 1300 when he sold to Yahoo. He received $1.4 billion of Yahoo (14.6m shares at $95/each). He had to pay taxes on clearing out that position as well, so you can safely assume his after tax position was more like ~$1.1 billion. He very solidly beat the S&P 500. He's worth $4.08 billion today according to Bloomberg (ranked #500 on their global rich list). He has increased his net worth by nearly 4x. The S&P 500 is at 2747. It has just over doubled since April 1999. He'd be missing a billion dollars if he had gone with the S&P 500, including any dividends. He was better off with what he did, he beat the S&P 500 index fund. Not only did he make more money his way, he got to do what he wanted to with his money, such as buying the Mavericks.
  - bdcravens 9y ago
    Sure, though given his investments in startups etc he could easily have lost 90% of it.
  - the_cat_kittles 9y ago
    thank you. this is always something people forget. if you want to claim you are a good business man, you need to show that your businesses do better than an index fund.

IntronExon 9y ago

He’s from the “got lucky” school of billionairing, but he has the ego of a Jobs or Gates. A well funded blowhard in other words; your instincts are on target. That, and evaluating statements on their own (dubious in this case) merit is a good thing, always. Even very smart and accomplished people can say things which deserve careful scrutiny, and may come up short.

goatherders 9y ago
Lol. You guys crack me up. He built a company and sold it for a bucket of money. This board talks about trying to do that ALL DAMN DAY. He did it Lol.
- IntronExon 9y ago
  ...And? I’m not sure what your point is, other than trying very very hard to communicate your supposed amusement.

unclebucknasty 9y ago

It may be stylistic. Cuban tends to opine a lot and sometimes comes across as a blowhard. He's overexposed too. There's something about people like Gates who don't make a lot of public pronouncements. When they speak, you tend to think it's because they have something of value to say (and they generally do). Probably doesn't hurt that they also let their work do most of the talking for them (e.g. Bill and Melinda Gates Foundation).

aidaman 9y ago

Yes, he's not a super genius. He's reasonably smart and good at spotting trends. I take the advice of anyone with a huge grain of salt.