Connect with us

Hi, what are you looking for?

Jewish Business News


Mark Cuban Warns Small Angel Investors a Burst Hi-Tech Bubble Will Destroy Them

Today, Cuban believes a much more dangerous bubble has returned.

Mark Cuban

Businessman, investor, owner of Landmark Theatres and Magnolia Pictures, chairman of AXS TV, an investor on Shark Tank and Dallas Mavericks owner Mark Cuban made his fortune in the dot-com bubble of the late 1990s, when he founded and then sold for more than $5 billion.

You’ll recall that the Internet bubble exploded around the year 2000, destroying many lives. Not Mark Cuban’s, though.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

Today, Cuban believes a much more dangerous bubble has returned. Recently, he wrote in his Blog Maverick:

“Ah the good old days … Stock trading millionaires were being minted by the week, if not sooner … There were hundreds of companies that were coming public and could easily be bought and sold. You just pick a stock and buy it. Then you pray it goes up. Which most days it did.

“Then it ended. Slowly by surely the air came out of the bubble and the stock markets declined and declined till the air was completely gone. The good news was that some people were able to see it coming and get out. The bad is that others were able to get out, but at significant losses.”

” The bubble today, ” Cuban continues, “comes from private investors who are investing in apps and small tech companies … But unlike back then, when the dream of riches was from a public company, now its from a private company… People we used to call individual or small investors, are now called Angels. … Why do they call them Angels? Maybe because they grant wishes?”

Cuban says he found some 225 thousand “angels” in the U.S. alone. “You can sign up to be part of the new excitement called Equity Crowd Funding. Equity Crowd Funding allows you to join the masses to chase investments with as little as 5k dollars.”

Cuban notes that the SEC made sure that there is no market for any of these companies to go public and create liquidity for their Angels. With the new Equity Crowd Funding rules yet to be finalized, “those widows and orphans will put their $5k into the dream only to realize they can’t get any cash back when they need money to fix their car.”

Cuban concludes: “If stock in a company is worth what somebody will pay for it, what is the stock of a company worth when there is no place to sell it?”



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.