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He, however, always hedges his bets.
What Was Mark Cubans Genius Money Move?
The deal resulted in Mark and his two partners receiving $5.7 billion worth of Yahoo stock.
He explained that everyone thought the internet boom was going to last forever, but he didnt trust it.
While people at the time thought he sold too soon, within six weeks, theinternet bubble burst.
Focus On Fundamentals
There are several lessons that can be learned from the multibillion-dollar businessmans strategy.
Just like Cuban, average investors should major in understanding company fundamentals.
This shall includefinancial statement analysis, growth prospects analysis, competitive advantages and quality of management, White said.
Markets, during speculative bubbles, are driven by herding and hype.
The approach of Cuban keeps investors skeptical not to follow the herd without doing research, White said.
Risk Management
Modifying the risk by assessment and management is important, White said.
Cuban insulated himself, as he identified stocks that were overvalued relative to their intrinsic value.
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