Mark Cuban on Investing - My Response to Mark Cuban on Dividend and Value Investing
Вставка
- Опубліковано 4 лют 2021
- Mark Cuban recently spoke on CNBC about dividend investing and valuing stocks and this is my rebuttal to his stance on investing.
What is a Short Squeeze - GME Example: • HUGE GameStop Short Sq...
NEW! Access our Investing Website & Private Community: investorsgrow.com/
Trading App I Use (moomoo trading app): j.moomoo.com/005Yzv
★☆★ Subscribe: ★☆★
goo.gl/qkRHDf
Investing Basics Playlist
goo.gl/ky7CJq
Investing Books I like:
The Intelligent Investor - amzn.to/2PVhfEL
Common Stocks & Uncommon Profits - amzn.to/2DAV8h9
Understanding Options - amzn.to/2T9gFSp
Little Book of Common Sense Investing - amzn.to/2DfFGG2
How to Value Exchange-Traded Funds - amzn.to/2PWSkRg
A Great Book on Building Wealth - amzn.to/2T8AKZ1
Dale Carnegie - amzn.to/2DDAk8w
Effective Speaking - amzn.to/2DBncAT
Audible Membership I Use (Audio Books): amzn.to/2LCorAY
Equipment I Use:
Microphone - amzn.to/2T7JxL6
Video Editing Software - amzn.to/2RQM1vE
Thumbnail Editing Software - amzn.to/2qIUAgP
Laptop - amzn.to/2T4xA8Z
DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.
#LearnToInvest #StocksToWatch #StockMarket
I found your videos back in April 2020 when I was first learning how to invest and wanted to buy the dip. One of your videos peaked my interest in DIS, and after doing some of my own research and DCF calculations, I decided to buy in at $110, and it comprised 50% of my portfolio. As of this morning it's now up 64.5%. Thanks Jimmy, you're the best. And great video as always.
This channel is ageing like fine wine.
Excellent Jimmy, standing up to someone like Mark Cuban and taking his argument apart with facts! That is why I watch you and have so much respect for you and your opinion!
70% of gains in stock market came from dividends
I absolutely agree with Mark because I heard Kevin O'Leary explain this better. Mark didn't do a good job explaining this but as Kevin explains it it makes perfect sense. What is the value of a non-dividend paying stock? It's absolutely what someone else is willing to pay for it. It isn't a problem if a company doesn't pay a dividend as long as they show a path to starting to pay a dividend. If a stock never has any intention of paying a dividend it won't matter what the company's earnings are, every company will eventually go into a decline phase and your share will eventually be worthless. The earnings only matter because it is the company's ability to return money to shareholders, but if the company will never pay a dividend earnings mean absolutely nothing.
It reminds me of the fact that Warren Buffett likes when companies buy back their shares far more than he likes dividends, an often overlooked factor. There's a lot of things that can make a company worth our time, just like there's a lot of things that can make a company an investment to be avoided.
You own their brand, their assets, and their earnings. That’s worth something even if they don’t pay a dividend.
He’s talking about trading bad companies not investing in profitable ones.
@@ethanswimmer1287 Who says that a REIT you buy today survives for 10 years? And since the dish out almost their entire profit as dividends, they have little to no safety cushion.
Take Alphabet, they have 100B$ in cash, no debt and solid steady growth. How likely would you say it is that they go bankrupt tomorrow. Or am I missing another reason why their stock price should go to zero over night (other than corporate fraud)? I'd love it if it did, I'd be holding my hands wide open.
I always thought Cuban was a clown that got lucky.
There's a saying that there are three factors to getting wealthy
1. Luck 2. Timing 3. Skill
And if you have 1 and 2, then 3 is unnecessary.
He created Broadcast and sold the company in the 1999 bubble for billions even though the company has never turned a profit. That one investment is the turning point of his life. Although successful, we shouldn't blindly follow wealthy individuals for their advice, especially when the majority of his early wealth was from a single investment.
@@aaronsun4746 I did not know that. Makes a lot of sense though lol.
True... when he sold Yahoo at just the right time, he was VERY lucky.
Thank you for giving facts and data and proving that famous or rich people don't have to be right everytime...
Love your analysis always
Thank you .
Nicely put, thanks for the insights!
THIS CHANNEL IS SO GOD DAMN LEGIT MAN
Good analysis I agree with you. High growth first, dividends later. That applies to portfolios with less initial capital too as well as companies
Great analysis, I agree with your intake.
Thanks for uploading
Great vid. Thanks Jimmy
fantastic explanation as always Jimmi.... showing something that I thought before, that we should not rely only not out on the payment of the dividend.
Thanks
Thanks Jimmy for the content, would love to hear your thoughts about Qcom at some point in the future. Love form Argentina!
Thanks for this video Jimmy. I was wondering if you can do a video breaking down clearing houses for equities like NSCC and clearing houses for the derivative markets, and their different models. Thanks again Jimmy!
Agree, just one point , many times it will happen that shares Will continueously grow.. and lose great movements.. me as average investor prefer to dólar cost average and stay invested as much time posible .
Bravo Jimmy !
Great video as always Jimmy! Since you were discussing dividends, could you do another video on monthly dividend ETFs? Mainly preferred share and odds and ends ETFs lole MDIV?
Nice video Jimmy, would love to see more like this.
You should also look at defense stocks, they seem pretty undervalued great businesses. LMT, NOC, GD, LHX
Wasn't it Mark Cuban who also advised the GME holders to stay strong [and hold]?? Paraphrasing but that's essentially what he said. Horrible advice as anyone knows/knew that GME would not stay at those heights even if you had the most optimistic view of the company's prospects.
@@ethanswimmer1287 Not an old-fashioned idea, just a more reliable way of approaching investing, especially long term.
It's easy for Mark Cuban to advice people to hold GME when he probably doesnt own even 1 share of it. He's not that dumb. GME hit a high and anyone holding that stock at that point should have dumped it. But, a lot of the people on WSB were actually getting IN at that point, and they're losing a lot of money right now. Sadly, they still think that stock is going up again... even to $1000. Absurd.
@@ethanswimmer1287 Why don't you enlighten us with the truth then? (seriously if you have any new insight we're all ears)
GME is far from out of the water. There is still a very real risk of them going out of business (admittedly less than say half a year ago). You call that mathematically impossible to lose?
Also, who is "WSB" some of them bought early enough that they would still be positive at today's price. But lots of people jumped on the bandwagon when it was in the three digits. GME is not reaching those prices on any fair valuation anytime soon, even if they manage the turnaround.
GME is still heavily shorted, true, but have you considered that a) those may not be the same shortsellers but a significant portion of shorts opened when the price was at 300 or 400 and b) that those shortsellers with decent risk management didn't have much of a reason to close their positions, since worst case they may only have to pay their lending fees for a little longer. Tesla short squeezes usually went the exact same way.
I think the quote was taken a bit out of context. I think Mark was just giving an extreme example of how some stock prices are determined largely by supply and demand (cause they're talking about gamestop) rather than fundamentals, not that no companies can be valuated on fundamentals. It might have also been after a sorta dumb question from the reporter, but don't quote me on that. This video is still useful, though, since I can see some people interpreting Mark's words as applying to all stocks.
Great video!
Nice one Jimmy!
Love the videos Jimmy! have you tried a non-white background? A bit easier on the eyes! lol.
Great video jimmy
Great video
100% Agree with Jimmy. I like Mark but some of the things he says I don't agree, like Buybacks are a bad thing and should be taken away. I do not agree with that. buy backs are great for shareholders.
Long live this channel
I think these guys are both right. My take with Cuban was that when you buy growth companies you are “speculating” basically that they will be worth more in the future. Doesn’t mean it’s a bad investment however.
With dividend paying companies you have a somewhat steady return. And for a lot of dividend investors it messes with your psychology to want to actually hold the company for each dividend. Also when you reinvest the dividend you now own more of the company, I assume that’s what he meant by thinking as an owner. Share buybacks are the same way.
With a growth company if you buy $100 worth a company and the company doubles. Yes you now have $200 but your ownership % is still the same. Where as with a reinvested dividend or a stock buyback your ownership % rises.
For small investors ownership % is negligible. But for someone like Cuban who can afford to own large portions of a company, ownership gives you much more power in the companies you own.
You simply make more sense here no matter whoever said what :-)
I saw Morgan Stanley issued its target stock price for TSLA. They also stated that the TSLA DCF in 2030 would be $3,000/share., assume a 50% CAGR, which they rejected. I like to see your calculation of TSLA stock price today based on both the MS and Elon Musk CAGR and DCF. Thanks
I ONLY invest in companies that pay dividends and here is why - There are NO REFUNDS on dividends. A stock's price can be cut at any time, but the cash dividends I receive along the ride are all mine.
Good point. And the way I see it, dividend paying companies are harder to manipulate. Obviously there are exceptions, like enron, but most times it's true I believe. Also, if the dividend yield is bigger than inflation, I've already made a profit, regardless what the stock price does..
Good day Jimmy
This is Hadi from Germnay
I am a new follower and so lucky that I found you .
I would like to inform you that I am interested in investment not trading .
But I have zero knowledge about it.
I am sure with you I can be in safe side
So my question to you do u have any specific course for beginners to learn step by step the investment or would you recommend me to follow your episodes
If yes would be appreciate how should I start watching gradually
Your reply is highly appreciated
Definitely disagree with the state that P/E or DCF is subjective ... The problem is most people actually doesn't really know the basis for the P/E ratio.... So a 15, 18, 20, 25 P/E for the S&P500 might appear arbitrary. It actually reflect the risk-adjusted comparison between a company's yield to the risk-free rate (which is typically a treasury note).
Thanks for this Jimmy.
Hi hope u doing well
If possible PLEASE
can u Analysis on CHEMRING GROUP
TICKER SYMBOL... CHG
THANKS
PLEASE
Do you believe in the AMC squeeze Jimmy?
As long as i am dollar cost averaging the less i have to watch stock prices. set it and forget it (check on it a few times a year not everyday)
Great video, really enjoyed your thoughts on what the suits have to say ha ha
Dividends are the only safe reward to stock investment. Stock price appreciation is a greater fool theory. And relying on terminal value ignores that management can dissipate company value through secular changes or poor decisions, i.e. empire building. For example, if I owned buggy whip stock in the 19th century, or GE stock in the 20th, I would hope I got some dividends and didn’t rely on the company’s asset appreciation.
You make hard thong simple that's why yiu are best. Thanks
I love your videos Jeremy, I really learned somethings related to the stock market I didn’t know. But I’m a be really honest here. The stock market isn’t what it used to be. I became a millionaire (net worth) in 2021. I split my portfolio into 2 sections (spacs & pump and dumps) and (quality stocks & dividends stocks) In the past 2 years I have more than 300x my money just buying SPAC’s/ pump & dumps compared to quality/ dividends stocks. For 2022 the spac’s/ P&D portfolio is up 220% compared to 55% up on quality/ dividends stocks portfolio. The stock market is a unrealistic these days in my opinion, so I changed with the current times. What worked for buffet 50-60 years ago it works, but for maximum return/ money you have to change to this new age style of investing. PLEASE Jeremy if you are reading this please make a video on topic.
Ummmm....Jeremy? Wrong name or wrong channel buddy.
@Learn to Invest sorry jimmy I called Jeremy you I was typing too fast
Lockheed Martin LMT undervalued by 29÷, interessted in an analysis?
There was a lot he said in the interview I disagreed with. Some stuff I did!
Another great video from Jimmy the man!!!! Best finance content on UA-cam by far. Keep up the great work!!!
Thank you jimmy!
Great work as usual Jimmy, but I don't understand why you chose Berkshire Hathaway as your example to disprove some of Mark's points.
Berkshire has multiple classes of stock, and not paying a dividend because Buffet believes he can get a higher rate of return" but has underperformed the S&P 500 for at least the past 5 years and as an active fund, has also underperformed the MSCI USA Quality Index for 15 years. There is also very little to suggest that Berk can outperform the S&P in future given their recent approach to stock picking.
Earnings and revenue are calculable. Price is 100% emotional conjecture if it isn't based on a dividend discount model. You're buying shares today and hoping someone else will pay more for them later. If you're an investor or trader in the market, you're just hoping the hysteria continues somewhat closely to what it has in the past so you can use these price-based ratios and studies to make decisions. The rapid and continued growth of companies like Tesla and many other tech stocks with a P/E of 100+ has destroyed value-based investing for the last decade+. It's all hype. And the hype is what has been paying the best.
The simple truth is, your fate is in the hands of other wealthy business owners and politicians unless you've created your own business producing a product or service others find valuable and will pay you for. If you want safety and reliable returns, consider cash-flow-positive real estate investments, dividend-paying companies with healthy financials and a growth horizon, increasing your salary through developing more marketable skills, starting a side hustle that can scale into a business, etc.
hi there, could you please do an analysis on pfizer again?
Although I agree with what you said but I still find it awkward that some companies like Google that has an EPS of more than 50$ but still doesn't pay dividend
Hey Jimmy great video what's your thoughts on ASX Ase Technology Holding Group Semiconductors in Taiwan NYSE has them @$15 a share and Analisis has them @$10 a share, there Low Volatility, 17B Market Cap, P/E @18.2, Volume Average 4 Million. Pay .12 cents a share Div/yield 1.1 over 85,000 employees around the world Quarterly Earnings keep going up📈. Im in Long Term
Hey Jimmy
Hope your well, great video.
I agree with the content though I generally prefer to dividend paying companies though I will pick up “Growth Stocks” if I believe in the company and the price seems right.
Though the main reason that I lean to dividends over growth is the benefit or reallocating the dividends without the need to sell any stocks. Generally I feel that the best option would be a combination of both growth and dividend paying companies with the main factor being the financials and the company itself.
Anyway that’s my speel, as mentioned great video and great content.
Have a goodFriday 😊
honesty there are too many stocks nowadays with very high P/S or P/E ratio yet they climb higher (Tesla is one).
I do agree the P/E ratio is highly subjective
Thank you for sticking with me all the way to this comment. I really appreciate it. Perhaps if you want to know more about what I have to say, then you can see the comments I've made on your other videos, link posted here. Separately, I've decided to make all my investment decisions AFTER first consulting your videos. You're generating a gold mine of content, and I also hope for your sake, revenue.
There's a huge disconnect between stock prices and the money the company actually gives out to the shareholders.
a successful company will most likely have a good share price but what fuels the stock price are the shareholders and not the company. that works well when the market is saturated like now, but what happens when the market crashes and the investors are fleeing? i mean i think the truth is that we're relying on investors to jump the price, but when you invest in true deep value stock that gives out good dividends you rely solely on the company success and not on the general market situation. isn't that the case?
Guys guys guys, they're changing the value chain of the company
I believe Cuban was looking for some love from the Reddit/Wall St Bets community. It seems most of them are not firing on all cylinders so it made them happy, those who knew what they were doing with GME bought low and sold high, a week ago. Cuban said something like "if you can afford to hold, just hold," but sometimes you should know how to take a loss and move on.
Look what are they doing, not what they are talking
Do you believe that ABNB is too overvalued right now Jimmy? Anyway, there will not be a Cuban effect like there will be Jimmy effect!
@Brendan Moriarty Yes I saw the LTI bot. I reported it. Report it too.
Hello Guys , i dis dcf model for apple and i got 70$ . Can someone help me ?
You have good pronunciation enough but with subtitles would be better! Hello from Russia.
Hey Jimmy, What's the score with Microsoft these days?
I like your nuance; that's definitely hard to get with short television interviews
You only referenced part of the interview and did not get what he meant.
Mark Cuban comments makes me have a flashback to Animal House and Bluto's motivational speech to the rest. Don't analyze it. Just go with the mood.
Mark c roasted!!!
I don’t understand Mark sometimes.. 🤦🏼♂️🤷🏼♂️ He owns Netflix & Live Nation and those 2 don’t paid a dividend.
Mark Cuban made his fortun as a tech entrepreneur in the middle of the internet buble, before to leverage his success and network to become a celebrity show host, not as an investor. You can be a great entrepreneur (who also happened to have some luck) without being a good investor in financial assets.
I kinda get Mark's idea. We all can agree that no dividends for growing company is better for further growth. However, if you own a piece of company (stock) theoretically you own piece of its earnings, but when you NEVER EVER get any of that profit, nor any other benefits, then whats the point? After long good years of profit and growth it can go bankrupt and you will loose it without tasting any of its "fruits" it has grown over company's life cycle. Of course you can sell it for higher price, but new owner wont get anything from it as well until stock is sold to someone who wont get anything etc.. Its like never ending pyramid scheme...until company goes bankrupt...
To be honest I'm not sure that the absence of vote rights in tech industries is a negative point. I doubt shareholders majority have the competence to define the future of the business\industry.
*Jimmy uploads a new video
Me: Fastest click in the West
Don't like cuban any way. Great video jimmy
you kinda got lucky waiting for disney to go below 140 tho in my opinion, I mean the pandemic is the ONLY reason that happened. DIS is not very volatile otherwise.
That's very true, and if it hadn't fallen to that level I would not have bought it. My only point being that I belive it makes sense to have a 'bullpen' of companies that we want to buy at/below our calculation of fair value. And then wait for it to get there. Sure there is some luck involved, but a lot of it could also be a part of the process. But that's just my opinion 🤓🙂😁👍
@@LearntoInvest Personally, once you get the fair value, if the current stock is above it considering average PE ratio of the industry would be a next step, and even taking a small position at the current price given long term prospect just because there will not always be a pandemic to give a nice buying opportunity.
That's a fair point!
@@AnzorKhawaj There's not always a pandemic, but there will always be crashes and corrections for one reason or another that present opportunities ... or just volatility that makes the price just peek below your limit.
I guess there is not much of an argument against finding a set of fair prices for different metrics and buying in tranches. Although, you will find some metric for every stock that says it's fairly priced if you keep looking long enough.
Also out of curiosity, which companies would you use to compare Disney's P/E to its peers? I can't really think of any with a similar business profile.
I listened to it and I also disagreed! Good to know someone agrees with me 🙌🏾
Totally agree. Definitely, not a fan of Mark Cuban.
People should not be taking financial advice from a person that got lucky during a stock bubble
Somebody's trying to compensate for "their paper hands".
"One of these days, Alice. Bang! Zoom! $GME to the moon!"
I hate saying that guy’s name...he mentions Apple only because he’s taking Facebook’s side in the cook/sucker privacy feud.
Not talking about Mark pushing the GME non-sense. Didn't expect such reckless behaviour from him or Chamath.
and btw, dividends pay taxes!
Mark who?
First!!!
Ok?
@@CraftyGoblingo ok!
Dividends are irrelevant (mostly)- fama and french
Cuban is kinda shifty, he told gme owners to hold.
Some of you may not like Mark, but the value of a non dividend producing stock is derived from capital gains, through net increasing demand over time, based on collective faith and CNBC marketing BS. It’s basically financial religion. The fact that you disagree with Mark to this point is why the world laughs at you Americans in general.
The Squeeze has still not been Squoze, great oppertunity to get in GME imo.
This is a lie! It’s over
@@tracyforrest2253 The short float is still over 100% my man.
@@CatholicSoldierX Problem is so many people got burned nobody wants to put money into it now, its gonna be way harder to get that kind of buying volume again to trigger it.
@@Familyguyex slowly it may come up again, half of the traded volume are still short. We just have to hold. When the momentum will pick up again the hype will come back. The math is on our side. Diamond hands baby.
I disagree it doesn't matter if the stock goes up 1000%... It's still worth 1 share. Dividend s are how you make $$
Cuban is a good entrepreneur. He is a horrible investor from what I have seen.
Great video!