Uncle Mark Cuban vs zero commission brokers {Reddit AMA}

Investing and Markets 📈
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Heis like a huge Internet investor and a basketball team owner. He knows what’s up.

“Pick the brokerage with the strongest balance sheet. What ruined it on RH is that they didnt have enough cash to deal with the growth in accounts, margin loans and volatility. The EXACT SAME THING will happen at the next broker if you dont make sure they have a MULTI-TRILLION dollar balance sheet to be able to handle these kind of circumstances”
“And there will be class action suits. And they will be combined and they will win and you will get a check for less than $10”

“That said, you will do all this again. You will go after WS and the next time you will be smarter. There was only one thing that messed you all up:”

“RobinHood and the other zero commission brokers that everyone used didnt have enough capital to fund the fight. They let you down in a big way. When you load back up, fight a broker with TRILLIONS OF DOLLARS in assets on their balance sheet. Someone that can be there when the fight starts and wont blink an eye. No disruption is easy or happens in a straight line. Stay with it. I am a believer”

https://twitter.com/mcuban/status/1355170847833600000

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Uncle Mark Cuban goes on Reddit for 2 hours and then on CNBC defending the apes (that’s a joke) —> KING! :crown:

“We go out and we get long and we get loud because everybody wants that price to go up because it gives them an outlet to sell it. And I dont see any difference between that and what WallStreetBets is doing.”

“It’s supply and demand
 This is nothing new.”

“The narratives that we create to sell stocks. P/E, discounted cash flow. These are all subjectives
 That doesn’t necessarily hold in a digital environment the same way it did in the past.”

“They used to trade salt for gold too, things change.”

“How people value assets is changing in a low interest rate environment.”

Uncle Mark :crown:

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And which broker would this be?

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Haha 
 I think Barclays have a stockbroing arm dont they? $1 TN

No way I’m paying them fees but people probably are if they do FX for ftrade

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Barclays aum its around 500 billion, no where near the multi trillion dollar aum you told us a broker needs to have. You dont seem to know of one yourself?

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Good question
 I need to make friends with more rich people, brb gotta call Sir Branson

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You told us we needed a broker with a balance sheet in the milti trillion dollar range, is it such a bad question to ask you who that would be?

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Mark Cuban — it was a “quote”.

And the rest were jokes sorry

Waiting for Blackstone to hit 1TN

https://www.reuters.com/article/us-blackstone-gp-outlook-idUSKCN1M12JI

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a quote you posted telling us we need that broker. why post it if its just garbage?

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Ok sorry not followinh you.

Also I’ve never taken people online literally even Mark Cuban. Im sure he was on Reddit being serious and talking in metaphors to make a point.

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"Cuban, who made billions of dollars during the dot-com boom, 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.”

:gem: :gem: :gem:

"Cuban said he believes a larger shift is afoot among younger investors. Not only do they obtain their information through different channels online, Cuban said he thinks they may also approach valuations with an alternative mindset after growing up “with an iPhone their entire lives.”

“They put a premium on items that are digital,” he said. “The idea that a digital trading card or digital artwork could have more value than something tangible in our minds, or physical, would be inconceivable to many people yet to Gen Z, that’s what makes perfect sense.”

“When it comes to stocks it’s the same thing,” Cuban said, suggesting there may be less of an emphasis on traditional valuation metrics such as a price-earnings ratio. He said his perspective has been altered by the crypto market, where some investors have adopted the buy-and-hold mantra known as “HODL.”

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Lets get Freetrade a trillion dollar balance sheet during the next crowdfunding!

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