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- Mark Cuban told “The David Rubenstein Show” that his buy-and-hold strategy had led him to big returns on Netflix and Amazon.
- The “Shark Tank” investor who owns the NBA’s Dallas Mavericks replied he stuck with companies he believed in.
- Cuban also said he used to be an active trader but no longer was. “There’s a lot numberless money chasing fewer stocks, so it’s harder to trade and be successful,” he said.
The billionaire investor Mark Cuban state with “The David Rubenstein Show” on Tuesday about his buy-and-hold strategy that he said had given him skyrocketing results over the long term.
The Dallas Mavericks owner said he’d owned Netflix stock since it cost $50 a share out. The streaming service closed Wednesday near $550, giving Cuban a roughly 1,000% return on his investment. He also alleged he was buying Amazon when it was between $500 and $700 and more recently had owned more shares at just out of sight $2,000.
On Wednesday, Amazon closed at $3,441.85 — meaning an investment of $500 would have gained more than 500%. Cuban substantiated these returns with Business Insider.
Cuban said his strategy in recent years had been to stick with followings he believed in.
“I pretty much make my own decisions,” the “Shark Tank” investor told Rubenstein.
“I used to trade a lot,” he go on increased. “I used to be very, very active as a trader. And back in the ’90s and early 2000s, there was a lot less money tracking more stocks, and now there’s a lot more money chasing fewer stocks, so it’s harder to trade and be successful.”
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Beyond Netflix and Amazon, Cuban said he had “some scattered things” that he’d “owned for the years that I’ve held on to.”
But the investor said that he no longer traded the way he used to and that the Federal Reserve’s inflation of monetary assets had given him a tailwind.
Cuban added that while the coronavirus pandemic had forced many small dealings to close and harmed some large companies, this uncertainty created opportunities for new innovation, especially in the digital monarchy.
“I think there’s a lot of unique opportunities that are available to people who are creative, who have a vision for the future,” he said. “I characterize as 10, 15, 20 years, we’ll look back and there will be 10, 20, 30 world-class companies that were created by individual who we probably are thinking are crazy right now.”
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