Comments by "bighand69" (@bighands69) on "Cuban on Investing: Diversification Is for Idiots" video.

  1. +tradertoursdotcom I use diversification to reduce risk. The old saying "..put all your eggs in one basket" is very real.  Now I do this in the knowledge that my returns are not going to be as spectacular but it is all about risk.  I cannot wait for the next recession so I can go out and buy lots of cheap assets.
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  2. Part 1 5% of a billion is 50,000,000 were as 5% of a 1000 is only 50. It is not worth an everyday workers time to invest at only a $50 return were as with a billion it is a whole different ball game. Most active professional investors do not beat the market and that probably includes Cuban. The market grow at an estimated 10% aprox. Trust me it is very hard to beat the market. Was he a one hit wonder in making a billion in one go yes many people are.
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  3. He is a guy with money that has to invest it. His strategy can work if used sensibly. Now I am of the complete opposite and want diversification. My portfolio exist of money, land, stocks and shares, Index investment, Direct company shares, Agriculture and cash. My view is that hedged investments are a must so that you do not loose everything or get hammered. His strategy does work as well as long as you do not invest every penny you have which is more than likely what he does.
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  4. They took a massive hit of course but they are still there if you invested wisely. He did state some useful advice investing in the stock market is not wise for most people. And most people cannot out perform professional investment firms who employ all manner of analysts. If you notice he did not give any direct advise.
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  5. Governments have to invest and also see a return from their investment we cannot have a situation were government just sits there and gains its income of taxing people it makes not logical sense. They need to partake in the market and for people to stop thinking that the market is actually government that is one of the reasons that so many governments are in massive financial trouble.
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  6. Part 2 Elon Musk is an example of a person who has built 2 companies with billion dollar valuations. Can you name others please. Was cuban lucky absolutely not he went and pitched his company to Yahoo and managed a billion dollar plus sale (share options) Do you think that was luck or easy. Do you think the world works that way. Do you know how many people pitch companies everyday with out success. I have been involved in several failures.
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  7. I am sure he is laughing all the way to the bank. it still stands most people should not go near the stock market even profession active investors struggle to match the market. Over 60% of professional cannot even match market growth so Cuban is right and you are wrong.
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