Cuban on Long-in-the-Tooth Unicorns

Your experiences with crypto…

“My bitcoin story did not end well but my brother amassed a small fortune on the stuff. When he first told me to buy it, I told him he was crazy. A few years later I told him I was jealous when  bitcoin topped $20,000 and he owned 15 coins he’d bought under $1,000.

“[Since then], I have owned both bitcoin and etherium as well as a few other lesser-known coins. Personally, my timing was just bad and cryptocurrency could be a valuable asset at some point.

“Would I speculate on it again now? Probably not. But if my brother has any other crazy ideas in the future, I might try to understand them before blowing them off.”

And another ill-timed speculator says:

“Back in the fall of 2017, I bought some bitcoin when it was about $4,000. If I had just stayed in Bitcoin, I would have been fine, but noooooo, I was too smart for that.

“Instead, I used the bitcoin to buy various nothing coins that now are approaching zero-value.  At least it wasn’t a huge part of my net worth.”

Your Rundown for Friday, May 17, 2019:

Long-in-the-Tooth Unicorns

Splashy billionaire investor Mark Cuban weighs in on Uber, IPOs and Silicon Valley venture capitalists.

As for Uber, Cuban wasn’t an early investor; instead, he plunked down a cool million (chump change?) on Uber’s competitor Lyft.

He says of both, including other unicorn companies that have gone public this year: “They just waited too long. There’s nothing exciting about [them].

“I don’t think you could have expected anything different … the reality is you’re nine years in and you’re still having to buy your revenue. That’s not a good sign.”

All true.

“I just think we’re seeing a reflection of the Silicon Valley ethos in the public market,” Cuban continues. “The whole attitude was wait, wait, wait, wait, wait.”

That’s five “waits” in case you’re counting — perhaps three too many.

Furthermore, Cuban believes Uber’s a classic example of Silicon Valley venture capitalists missing the mark — big time — on evaluating companies, particularly ahead of IPOs. Something Cuban believes will change in the near future as CEOs and execs at private startups are more careful about the investors they choose.

How does Cuban invest? He’s not coy: Amazon and Netflix are among his top investments.

Market Rundown for Fri. May 17, 2019

S&P 500 futures are down 22 points to 2,856.74.

Oil is up 30 cents to $63.17 for a barrel of WTI.

Gold’s lost $2.50 off its price to $1,283.70 per ounce.

Bitcoin — ever mercurial — is down $733.90 to $7,136.91.

Have a good weekend. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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