Mark Cuban

Summary List Placement
Mark Cuban is betting $1 million that Netflix and Amazon will outperform the S&P 500.
He’s also wagering $1 million that bitcoin or ethereum will beat the index over 10 years.
Warren Buffett bet on the benchmark to beat hedge funds over a decade, and won.

See more stories on Insider’s business page.

Billionaire Mark Cuban is so confident that his two favorite stocks and the top cryptocurrencies will outperform the S&P 500 index over the next decade, that he’s willing to bet $2 million on that outcome.

The “Shark Tank” investor and Dallas Mavericks owner has agreed to a pair of wagers with Peter Mallouk, the CEO of Creative Planning, a wealth-management firm.

Cuban tweeted he will stake $1 million on a 50-50 split of Netflix and Amazon stock beating the benchmark over the next 10 years. He will bet another $1 million on Mallouk’s choice of either bitcoin or ethereum doing the same. Mallouk will bet on the S&P 500 in both cases.

The two men agreed to make the two bets this week after butting heads over the value of a diversified portfolio and the long-term viability of cryptocurrencies. The argument was sparked by Mallouk criticizing Cuban for promoting dogecoin, then predicting that 99% of cryptocurrencies will end up worthless, and touting stocks as superior to crypto.

“If you buy a hundred stocks, odds are most go up,” Mallouk tweeted. “If you buy a hundred cryptocurrencies, most will go to zero. Big difference.”

“Only a fool would buy 100 stocks or 100 crypto assets,” Cuban replied. To settle their dispute, Cuban and Mallouk agreed to convert $4 million into crypto, set up smart contracts that will automatically pay the victors in 10 years’ time, and donate the proceeds to charity.

  10 things in tech you need to know today.

The pair’s bet echoes a famous wager between billionaire investor Warren Buffett and hedge-fund manager Ted Seides in 2007. Buffett staked $1 million on the S&P 500 besting a basket of hedge funds over the course of a decade, and won.

Join the conversation about this story »

NOW WATCH: Sneaky ways Costco gets you to buy more

…read more

Source:: Business Insider


(Visited 4 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *