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... I ... welcome to the big interview I'm Alan Murray and I'm here with Mark Cuban ... a successful entrepreneur owner of the Dallas Mavericks ... of ... and EDLP and Dale ... I'm sorry to the Editor Trophy and seven on the table here ... also a reality TV star ... also a hyperactive blogger I don't know which of those I mean how do you describe yourself ... just a notch or ... an entrepreneur yet ... well so so than as a veteran of the Takuya little bit about what ... the news we've been living with her last couple of weeks because the market's been going through these Why old gyrate writes ... um don't seem to have a clear sense of what ... direction is up ... on how you interpret that as somebody who's spend what time what more could I might you manage the portfolio trader had ... an optimist or bonanza Portfolio it's great ... you know on ... anytime there is volatility in any type Times changes opportunity ... now I say it's great because I've taken a whole different approach to invest in the most people ... you know I think by Holzer caught on I think ... you know the idea that you always have to invest your your cash is not far behind ... and so I've always been of the attitude that ... own unless you really ... have a ... commitment to something just keep your money in cash ... knowing that at some point in time ... there does could be a week or two like we've had but how much time I mean there was going on in your life how much time you have to actively manage your portfolio through these five hundred point mark its twentieth that ... they'll have to spend much time and told that until it hits the fan ... right so I mean on the day hitting the family DIC's the lioness with the opportunity is like I would look at my portfolio or ... you know I get I get to repay you know one line on one number statement every day from ... on my bank and ... the other tells me if anything weird happened and I when even look at that that when everything starts getting crazy ... I called the World Series of investing ... you know that's when you start digging in ... and it's because of the approach to take ... so ... you know back in two thousand six and two thousandseven I was right to block sale of ... the stock markets for soccer's ... your game put you know we sit down at the business that we always look for the stock or ... if you don't see it if you ... you've got all these professional people on the other side of traits ... I mean ... meister traded stocks in the early nineties after I sold my first company ... you know you could understand if I know most of the market better ... than the professionals so I can understand ... you know the new technology from Wealth pleaded for an update on all these old technology company's ... better than the traders ... today there's so much money in these huge hedge funds ... and that then they have such professional research in depth research ... there really aren't any ... advantages for the individual traders ... and so my approach has always been ... a less I know something specific ... putting cash and so ... so what are you investing in what are the areas that bromide you feel you know what I did Onek into thousandeight two thousandnine I put everything into MLP is an Emirates' tone ... on mortgage backed securities was that I thought were the better companies on ... and I just piloting ... an aisle so Paladin to Australian bonds because I thought the economy was the next time ... but my way plane China to make one-way bets this isn't portfolio balancing your holiday yet all that asset management unit diversification as for its right because you ... because your kids you can diversify enough to know what you're doing ... right I mean ... I did my homework on Australia right I did my homework on the Camry sedan the homework and a mouthpiece and a price in the just cried and so what are you doing right and so what do a good right now I've I've been gone all the dividends the recovery of the put in the cash ... and so but I don't think stocks the fallen and now ... to just dot to save the speed to any pursue a stocks are cheap ... right so I can look at the M O P is into thousandeight nine ... they will pay in eighteen ninety percent for companies that have never missed a payment right and always put on all the cash ... and they look thirty ... now you know you look at the top with Apple has a phone that much and just to be down ... ten fifteen percent from the highs are still not as low as there were ... eighteen months ago ... and so what I did was I said ... itself so this could be a lot of volatility ... so I've bought on the to deliver money and bought on the money calls ... on the STO on the and Spider calls are bought on the US aam ... Standard Poors the SB five hundred ... and nine to the CBO Dimas which is the Dow Jones ... Sto about those long to win not one that stock prices cratered ... and then we had the big not today but the big run-up before ... Abottabad support knowing that even though was pain for a lot of old volatility ... that I thought there'd be a lot of swings in the market ... until I sit here to spend on volatility is that no matter how long is second to last year ... no idea ... and that's the whole thing right people are buying intrinsic value in companies anymore the whole Warren Buffett approach works great for Warren because ... he can put on three billion dollars into an investment and take a whole different approach ... than Jahner Sally Joe investor who can do now but so what so use a Buy and Hold is a crock of something right I can't member exactly I dunno I guess I and and you said the portfolio balancing is a waste of time so what are John Saleem co suppose it depends how much money you have ... right so ... the best way to get a return that says they you have fifty thousand dollars into ... the to be tended to be a Hunter ... but the of this these fifty ... firstly I would is painfully are critical to its costs NEW eighteen percent ... that's what Jon with Elisha defers most all ... right there's more credit cards total loan debt ... non relative to Pursell income than it's ever been in ... the history of the United States ... second thing you do is use transactional value of cash ... a lot of people say you know you lose the money to inflation when you just have cash in the back ... completely disagree I can you know I know only by boat to suit toothpaste for my family and no toilet paper I know ... all the consumables that I have I can take My Cash single get a better value ... I can take My Cash and Goyard store up ... to ... that what I mean how much the spaces toothpaste take you know but here is that ... the vessel think the time it takes just a finger under budget ... nobody at the time it takes just analyzer spending habits ... you may get a better return and you'll end up with more cash ... than trying to fight ... the good John Paulson's of the world and these guys to ... who have hundreds of analysts were working for them why would you try to do better than them you can ... you can ... and now it's the it's a hundred times worse because of all that ... the program trading ... but if you have enough money if you have to put some of that somewhere to park some of that somewhere and hope to make a return on a ... Woody point ... you know what I do I don't I don't think you have to make a return on it because I'd rather sleep well and I ... you know I putting caps literally no Avici on a different position where on I don't have to live off of the interest in the one basis point offered that right ... but at the same time ... that ... having a ... dry powder if you will ... available when weeks like today when we sleep this weekend and days like yesterday and today now see an opportunity see an opportunity then you're ready to take it ... as opposed to say I can't get out when Ameican into an up or the other part ... is better ... to cut your health costs because you sleep a whole lot better in our sleep well all I think like a baby ... but that would lead to sleep like a baby before the championship knows that although I get about fifteen pounds of the year ... ahead ... the ... group what you've been I've been reading your blog you've been writing a lot lately about what ... it's going to take to ... get the U S economy back on ... what can you share your ideas we know that ... Monex bought I think is gonna be about a lot of big numbers ... right we have a challenging United States where ... we don't have any body and in ... government who can think big enough to impact trillions of anything ... what we historically where use to you know ... hundred million here hundred million there pretty soon all a heads up and has an impact when you're dealing with Canon fourteen trillion dollar deficits ... there's nothing they can come up with this willy going to have an impact but you have to look at the blocking and tackling anyways ... he are robots and that we need to get where the writ of on this is that the process happens ... in the four packets you worry about at controls more than half the cylinders is it my own business ... you know there's always one coming out for retaken the things that he still ... that the patent Office granted a patent ... and you can challenge and you can find if it is very expand you really think that some ... that is a big effect on job creation ... she reached ... an out tell you why ... because for any truly technology businesses or ... any industrial technology business now ... there's there's unlimited uncertainty he always are people talking about the government about the uncertainty of what's going to change right ... well with hat was right now there's so much litigation now ... that all my companies are getting hit not once every six years ... once or twice a year ... you don't quite know where it's coming from ... any don't know what's gonna happen you don't know how much is gonna cost you to defend any don't even know if you're in and have taken a big cat summits are more cautious yet to be far more cautious and you're paying more in insurance increase in insurance rates and even health care costs with but you also I'd I think thats an interesting proposal he wrote another column ... with a a proposal goes much further out there were you were suggesting ... that the government actually invest ... in fast money money in companies that will create jobs right now you know we talk about on ... positioning or approach to creating jobs on ... we look at tax policy ... right ... and good that conventional wisdom says that ... of the Democratic side is that if you spend a lot don't Keynesian thing if you spend a lot you or you can create jobs ... the prom their ... awarded in you can hire people and ... infrastructure whatever promise the Government variant inefficient and implementing that so ... even though you know for every dollar you trying to create jobs with ... your only seventy cents to thirty five cents is actually going to the infrastructure the lesson that's going to the job right and then you'd even know of jobs are actually being created on the Republican side they say just cut taxes that money will go into what and of creating jobs when in reality ... cash is not as an inhibitor for most companies and there's nothing that's historically that says that if you cut taxes more jobs to be created the stellar direct correlation write what I said was ... look rather than hoping something happen ... let's play you know that that's for volunteers ... you know basically saying if you have a company not the start of a company that's been in business ten years ... as CEO and I think that on return of one hundred million sales a year ... and a definable ... easy to do due diligence on company ... tell us that the money to create jobs ... in the wall that you kind of didn't or group on type way ... Arion ... and they basically saying you know what for action on a dollars I can create X number of jobs ... and the will just work away down the beds so if Allen's company comes in and says you know what for twelve million dollars Eitan Korea hundred jobs ... are you really think the government to pull that off what I don't think the government itself I think somebody outside income and that's why when on the states to take a committee of non partisan people ... that have no view ... this could be difficult to do ... that because it's completely different approach ... you can take an outside the government I think and have a government funded from there ... and the reason I said you still have the government ... essentially pay keen ... what's ... right ... yet it is always venture capital and ... in some respects it is venture capital but compared to what we're doing right now when ounce a scatter shot in print ... write ... to change tax policy ... to part two sides don't even agree with tax policy should be ... and we just put ... right we hope something happens what I'm saying is ... if you have an existing company endured here to say that your capital constrained ... in with capper you create jobs ... tells about it ... right ... and will be a wouldn't do it in the Capossela was a response you get when you wrote that the of ... pre Forelle to run for president run for president from doesn't even have that now ... and again on the other side was ... the start if the government will never happen but it you ever run for office Poweo or USDA's a beer is so there does seem to be a leadership camp at the moment no question ... no question ... on ... but I can hear the question it out you did you ever gets about a dozen times and I like that so I'll not ... just what what ... what let's turn to the sports basketball of ... I tell you of your trophy to say on pay New the lockout has to pay new ... you know I'd I can even go there in all IQ and it was the eye just as the Richard Commission to talk about ... has better not to comment because you are famous for talking about things you should be talking about why no pics of Delphi get a really really awful awful lot of that that that ... what topic that you should be done in the aboutthe dictated the ... politics of the wires right ... but but but but let me ask you ... the lockout the side of ... did you do you will the Mavericks ... some business investment in you actually make money ... off of that can go there I was just another top now ... but they haven't yet you make money over time you'll owned it ... can go there on time with the Dido's Sports isn't the best ... I can inhale ... and all ... but he said ... the dough into a AutoZone College on a ... unit of the festival and all the small Nano was taken ... I have a baseball even women in the the the I mean for baseball it's gonna be the right to ... I mean ... that's most of the well I'd I just didn't ask what to do my entire life ... Syngenta for love of sport yes ... and for baseball you would do it followed a doesn't like baseball I'm you know the better baseball player than basketball player in school ... but at the same time on ... you know ... to buy a franchise in a major market is get so expensive ... it has to be the right is a steal I think what we're finding out in other sports like that of you know I think ... that the folks who bought are great people that are there to do their best ... but they spent so much money on the franchise is nothing left to invest in it and you gotta be careful ... to you think the opportunities going to come ... on now ... know now what did you ever comes on the look you ... specify McKenna College Sports is well ... yet nothing's really come that we're still working on that some people working on it all ... hopefully we're we're looking to have softened to present only in ... the middle of September ... so I've got people working full time ... so you may gird your ... first million cure for civilians I guess ... in the ... last bubble ... right ... in nineteen ninety eight US soldier got voted in two thousand actually do so in two thousand right at the peak of the bubble ... to have to be congratulated on your timing ... of it also has to give you some sense of how ... bubbles were sure you see anything like the going on and technology right now min twelve ... bubbles ... before the bubbles to a strike bubbles as they they impacted the general population deal back in the tech bubble in the Internet bubble ... you get into a cabin there talking about Internet stocks ... you know in about stocks that just one up thirty points in the day in Allendale this money ... on your to do this not happy now what's happening with with tech stocks up until this past week anyways ... is that ... the season were getting into big names because the look good in their portfolio ... and rather than individuals benefiting are getting hurt ... it's the VC better plan their own game a bubble in the US are bubble know ... what's happening now is ... Iliffe your racial investor and on ... Twitter ... that was great because the next PC you can then pay the higher valuation ... give some money to the company but did most of that ... to the first investor the right word to management again actually going to compete in the next level who came and ... they gave some to the previous it's almost like ... it's more like a Ponzi scheme it's almost like an old chain letter ... you know the old chemistry somewhat in nineteen ninety nine the family was the difference is you where you were just cashing out a few folks ... on ... you know what you hear money to you if you go into a public stock market as readily exchange right yet so you're buying stock broadcast the coming year by somebody on a regular market whereas with them with today's ... technology VC bubble ... you're going to this company are going down much to take on Twitter was Facebook way right ... and you're saying and a say OK our valuation just one up two billion dollars ... and you give us five hundred million dollars ... half of this going to go to the bid DIC's the God and before you so they cash out ... and a half of its gonna go for the quarter has been a good management in the quarter that will go to the company ... and so it's your ladder in your way and ... and the new money is paying off the old mine ... and an EU but there's no upside stock orders that are really purchase of ... so where do you think the big entrepreneurial activities ... Yellen technology the arts go out to these are huge because the cop opportunity ... that the chance for up to up onto and off to opportunities are there because the cost of techno is drops of significantly ... you know you can all use the laptop or PC ... and an internet connection to the pre much do anything in Korea to meet at the company ... the problem as I mentioned earlier ... is everybody's consumers into oblivion ... you know companies large and small ... you know ... the little guy with a PC to have to worry too much ... of the trust Yes to me the minute they get on the radars minute to give any level of success ... some in the coming into the company ... because there is that ... all aren't ... you know I won't mention names but ... do it we get sued and won businesses because they said ... that their software does Fiend detection exactly the same way ... that our product ... now ... we had no idea we were using their technology ... right there just saying that software that they had created and ... do things detection the thing where we're joined now ... so where violated their pact at some point patents are important for innovation ... you know I mean what you've lost all classes ... yes ... absolutely you know you ... don't hear it was unnecessary for broadcast back on now that I mean look at the pet litigation Tweed and I mean I'm ever sitting down to fill out to pass this one for using IP addresses to discover ... on location in the other one was for distribution of video on the network ... and think and ... when I get what the point says I money doesn't matter right ... you know if you you do it by getting their first in Ronnie Joko when even your business by taking your business ideas are easy ... I mean if if that litigation was at the same level ... today are in the eighties this was today ... I mean if you know the history of Microsoft ... you know they were competing with almond operates a so-called CPM by thick of the code into research ... does the research would I pad is that all the stuff ... and there be no Micra saw ... Michael Dell usage is not raised in the last mentioned the litigation culture change ... the culture so completely different to me people making money off of the ... business that though there is jurisdiction in East Texas the fall they do ... you know and so every Binder brother is buying up ... patents that ... when he was was the first place and then using them as leverage ... it's gotten so bad now ... that companies are buying ... hadn't on ... troves or collections to act as nuclear deterrence ... to other big companies with their own pet collections and so the Osamu Summit Estate four point five billion dollars per head of collections ... just so in the event that how you fully assured destruction you come after us we can welcome them to you and so nothing happens that's the way you don't get sued because that ... that the of this company knows that the other companies by later one of the pack somewhere ... in so though return the favor that sweet digits at four point five billion dollars are to be used for almost anything else to ... I was talk about that Larry O'Brien Trophy you spend a fair man of time but they are to be aware of of what we like it that they ... did during can you drink out of it to swim with the two ... the Daily show ... the the the ... God of God ... but if we won I took it everywhere on ... with me personally SUP with that ... the good the bad and I was let go to ... right now on is literally sitting in my kitchen so them all on the counter so that when I wake up in the morning to goad you get breakfast ... give them a kiss the door of ... a bit of a vehicle that where often time or ... not I will email it held a video the other thing that's a word that ... is to take it to various places I wanted ask of all my gym yesterday and I did promise in the guise of plywood ... that I bring that trophy ... and so it took its own lifetime fitness and Dallas and on ... are just a short the basketball guys because ... you know you forget the impact in ... and help order was to the city of Dallas and North Texas ... read the whole agenda stopped ... by gestalt ... BLK Minister taking turns studio to take your picture the right to ... know much about what to do whatever they wanna get a job Levin noted that in a sea of it but um ... yes I mean it's just Italy it is a lot about sports that are ... as much as I think I own the math ... and all you know it's it's North Texas that owns the Mavericks and ... mass fans around the world and ... you know when the champ issue was ... not only emotionally you know ... trading in fulfilling for me but ... I mean it really picked up the spirits of of ... of all of all North Texas ... I mean it in the most amazing thing ... is that people don't come up to me and say congratulations in Dallas they come up with that thank you