Mark Cuban Talks Trading Realities on CNBC Squawk Alley – Fantastic Interview

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“If you really think of it, when a stock doesn’t pay dividends, there really isn’t a whole lot of difference between a share of stock and a baseball card. If you put your Mickey Mantle rookie card on your desk, and a share of your favorite non-dividend paying stock next to it, and let it sit there for 20 years. After 20 years you would still just have two pieces of paper sitting on your desk.” Mark Cuban

In a fantastic interview this morning, Mark Cuban said on CNBC “Squawk Alley” that he “believes the Reddit traders who helped spark the GameStop short squeeze and subsequent stock surge will remain a force in the market”.

“I always was taught, ‘You get long and you get loud,'” Cuban said. “You get out there and create more buyers for your stock and the stock price goes up and that’s exactly what’s happening here, except it’s just WallStreetBets that’s doing the ‘getting loud.'”

Cuban said he believes those online investors have gained valuable knowledge from the short squeeze, as well as from the volatile cryptocurrency market. “I think this is real,” said the “Shark Tank” investor and owner of the NBA’s Dallas Mavericks.

“I think now that they’ve recognized their power and now that they’ve learned some lessons, we’re going to get more of it, not less of it,” he added. “It’s not going to be a set of circumstances where all these people lost money, they’re going to go home with their tail between their legs and they’re never going to do this again.”

Cuban piled on during his interview with CNBC with remarks that some investors might regard as heresy.

“The narratives that we create to sell stocks — price earnings, right, discounted cash flow, those are all subjective,” Cuban said. “We just have been told by Wall Street that the lower the price-earnings ratio against your growth rate, then that’s an indicator the stocks’ going to do great things. Or Graham and Dodd in terms of asset valuation — that doesn’t necessarily hold in a digital environment in the way it did in the past.”

When pressed by the interviewer about his comments, Cuban remarked, “Yeah, they used to trade salt for gold, too,” Cuban replied. “Things change.”

References:

  1. https://www.msn.com/en-us/money/markets/this-is-real-e2-80-94-mark-cuban-says-reddit-traders-wont-go-away-just-because-they-lost-money/ar-BB1djUfc?ocid=uxbndlbing
  2. https://www.mediaite.com/news/mark-cuban-tells-cnbc-he-supports-reddit-traders-to-gen-z-thats-what-makes-perfect-sense/
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