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Cuban Sells His Facebook Shares


Parsad
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"I mean if you look at other companies like LinkedIn, they issued 8.4 million shares and the stock skyrocketed. If Facebook would have come out with 8.4 million shares, instead of 421 million, the stock would be at about $200 right now. So it was just the circumstances that led to me getting in and out," Cuban said.

 

I'm glad I don't look at the stockmarket this way  :-\

 

I mean, I'm not saying that he's wrong that often fundamentals are temporarily forgotten by Mr. Market and a stock rockets up because there isn't enough supply to feed the hype, but I couldn't sleep at night if I had to rely on trying to predict mass-psychology to make money..

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"You better cut the pizza in four pieces because I'm not hungry enough to eat six."

Yogi Berra

 

Ha, that's always a good one  :D

 

Though I believe that Cuban was referring to something different: Since afaik Facebook didn't float the whole company during the IPO but just a fraction, they could have reduced supply without changing the size of the 'pizza'.

 

f.ex. If they have a 100B valuation and float 10% in an IPO, it's not the same as floating 1%. Maybe with 1% there would be an irrational feeding frenzy that would make the stock price stock, but that wouldn't happen with 10%..

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"You better cut the pizza in four pieces because I'm not hungry enough to eat six."

Yogi Berra

 

Ha, that's always a good one  :D

 

Though I believe that Cuban was referring to something different: Since afaik Facebook didn't float the whole company during the IPO but just a fraction, they could have reduced supply without changing the size of the 'pizza'.

 

f.ex. If they have a 100B valuation and float 10% in an IPO, it's not the same as floating 1%. Maybe with 1% there would be an irrational feeding frenzy that would make the stock price stock, but that wouldn't happen with 10%..

 

Cuban didn't make most his money by investing right? I recall he started a tech company. I read a few of his investment posts and he's generally lost when it comes to patient and disciplined investing.

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Cuban didn't make most his money by investing right? I recall he started a tech company. I read a few of his investment posts and he's generally lost when it comes to patient and disciplined investing.

 

That's correct, which is why I said I'm glad I don't see things like him :)

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Cuban didn't make most his money by investing right? I recall he started a tech company. I read a few of his investment posts and he's generally lost when it comes to patient and disciplined investing.

 

That's correct, which is why I said I'm glad I don't see things like him :)

 

Cuban is the ultimate value investing mirror image of Warren Buffett. 

 

Warren knows how to identify long term value in a company and buy it at a bargain price.  Warren prefers to hold his companies forever, even when they may sell for a price far above intrinsic value.

 

Cuban knows how to identify and own a company that has little or no intrinsic value, but lots of curb appeal -- And then sell it at the most inflated price possible.

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You guys should check out Cuban's book 'how to win at the sport of business'. It is a collection of blog posts, and not a true book, and despite the awful title, it is quite good. He actually has more of a value-based investing style than you'd think. He's a real smart guy.

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You guys should check out Cuban's book 'how to win at the sport of business'. It is a collection of blog posts, and not a true book, and despite the awful title, it is quite good. He actually has more of a value-based investing style than you'd think. He's a real smart guy.

 

You're right.  He seems to be very good at assessing the value of a company and the psychological state of investors, especially when a company is a good sell or in an activist situation on the short or long side.  He may be more of the Jim Chanos type than the Warren Buffett type, but I could be wrong.

 

Thanks for the book reference.  I hope to learn more about him from the book. :)

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You guys should check out Cuban's book 'how to win at the sport of business'. It is a collection of blog posts, and not a true book, and despite the awful title, it is quite good. He actually has more of a value-based investing style than you'd think. He's a real smart guy.

 

You're right.  He seems to be very good at assessing the value of a company and the psychological state of investors, especially when a company is a good sell or in an activist situation on the short or long side.  He may be more of the Jim Chanos type than the Warren Buffett type, but I could be wrong.

 

Thanks for the book reference.  I hope to learn more about him from the book. :)

 

He has a very contrarian focus. He's been successful at selling into bubbles and buying during short-term panics.

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Cuban definitely seems like a smart and business-savvy guy. Just very different from the type of value investing that I feel fits best with my personal strengths.

 

But if I could do what he did and net a cool billion, I would  ;)

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