Mark Cuban Blames Himself For Losing Money On Facebook IPO

McGruber writes "In a blog entry, American business magnate Mark Cuban explained who he blames for his losing money in Facebook stock: 'I bought and sold FB shares as a TRADE, not an investment. I lost money. When the stock didn't bounce as I thought/hoped it would, I realized I was wrong and got out. It wasn't the fault of the FB CFO that I lost money. It was my fault. I know that no one sells me shares of stock because they expect the price of the stock to go up. So someone saw me coming and they sold me the stock. That is the way the stock market works. When you sit at the trading terminal you look for the sucker. When you don't see one, it's you. In this case it was me.'"

Comments

Re:The bounce is the problem

[udachny]

you think that companies are inherently altruistic

- no, Mr. Logical Fallacy, I do not and none of it comes out of my comment, but keep building your house of straw, because you think it's going to be easy to take it down.

if only there were less government intervention, then everyone would be better off.

- this is not a question, this is not a hypothesis, this is a fact. Historically speaking, countries with bigger governments and more laws and regulations are worse off than countries with smaller, less powerful governments (relative to the power of the individuals).

So USA was a strong country, economically speaking, when the gov't was not even 1% of what it is today, that's before the gov't figured out how to crack the Constitution.

So USSR was in a terrible economic shape, same with China, when it was a completely command economy.

You can cite Scandinavia and Somalia, but you never look at the facts. Scandinavia does not do deficit spending, the size of its gov't is covered by its income, and the gov't has been shrinking in Scandinavia for 20 years.

Somalia is a war torn country, where people fought against the powerful Communist regime that was in place after the British rule was replaced with it.

So you think if only companies didn't have to comply with all of the filing and other regulatory regulations then the small investor would be better off?

- yes, absolutely. On average people do not gain anything by gambling on prices of IPO stocks, I am talking about public 'investors', who are basically made into the ESCAPE PLAN, and the reason it's an escape plan (exit strategy), is because the IPOs are inflated by the process.

The initial public offering shouldn't be in the hands of government regulators. Actually the Free Market found a temporary solution to this, that everybody on /. seems to cheer, here it is. Are you against the idea? This is the free market trying to undo the damage that the gov't regulations have caused, but I wouldn't be surprised if at some point the gov't turned around and said: this kickstarter thing, it's competing with our ability to steal money from people on IPO scams.

As to your concern about RISK, well that's the point - gov't CANNOT REDUCE RISK.

Tell me, Mr. 'Intelligent', how did gov't reduce risk of people losing their money on Facebook IPO exactly?

Come on, do tell, I am listening. All those regulations, all those rules, and so what? FB is way overvalued, its revenues are going to DROP, there is no way it's worth 38 bucks or 18 bucks or 8 bucks. Maybe 2-3 dollars (if that)?

But some people made crazy money on this, but is that an EFFICIENT allocation of resources, to allow certain people to make CRAZY money on something like that?

I'll answer this question myself, because I don't believe you understand what 'efficient allocation of resources' means. The answer is NO, it was never an investment that was worth 100 billion. It was never an investment that was worth 5 billion. But the problem is, more than that has been pumped out of the pockets of the VICTIMS that the gov't turned the poor investors into.

In your words: hundreds of thousands of companies are looking for investments, while all the credit that banks allocate goes directly to the US Treasury because of the inflation and completely worthless money - interest rates are at 0, this means holding US dollar is worth than holding almost anything material, because material things (that don't go bad) at least stay with you, they don't disappear over time.

You are better off investing in a TON OF JUNK IRON today than investing in any gov't debt or playing in IPO casino, that is very much regulated by the gov't.

The purpose of IPO is not to allow the public to gamble, the purpose is to allow the company to have some money to START THE BUSINESS and to allow the public to S