Cut Your Losses Mark Cuban
Mark Cuban can get under people’s skin, but you can’t deny his business savvy. He made billions before the internet bubble burst with broadcast.com, his tenacity brought him a NBA championship last year with the Dallas Mavericks, and now he is wheeling and dealing on Shark Tank. He recently revealed that he lost a bundle on Facebook. However, I believe this is what makes him so successful.
Cuban made a 5 million dollar bet on Facebook hoping for a pop. You and me both Mark! But when things went the other way, he quickly closed his position to the tune of a $200,000 loss. He didn’t sweat it because it was gambling money.
Why I’m Not Mark
We both shared the same hope that the Facebook IPO would pop, but it didn’t. He reacted quickly and cut his losses. My guess is he is confident in his skills to put his money to work in a better opportunity. Also because it was play money, he played loose and not desperate. For me, I am still not totally confident in my skills. Secondly, I am holding on too tight even though I just use a fraction of my portfolio on stocks. Finally, I couldn’t see that I was wrong even though there were clear warning signs at every turn.
He might not be the most popular guy around, but no one can argue his success. Although I may not have made billions via the dot com gold rush, own a sports team, or appear on network television. I can learn to adapt quickly, know when I’m wrong, and be confident I can bounce back ala Mark Cuban.