Entrepreneur and NBA team owner Mark Cuban has never shied away from a good public argument. One friendly Twitter exchange led to $2 million in bets on a 10-year price appreciation performance.
What Happened: Mark Cuban is placing a wager against Peter Mallouk, the President and CEO of Creative Planning, a wealth management company.
Cuban will bet $1 million on a 50/50 split of Amazon.com, Inc. (NASDAQ:AMZN) and Netflix Inc (NASDAQ:NFLX) stock versus Mallouk’s pick of the S&P 500 (NYSE:SPY) over the next ten years. The winner will see their favorite charity receive the proceeds of the bet.
Why It’s Important: The debate between Cuban and Mallouk came from Cuban praising cryptocurrency and Dogecoin.
“When was the last time you looked at your bank account and felt like you had more money to spend and things got cheaper? Doge might not go up, but I’m saying there is a chance,” Cuban tweeted.
Mallouk took offense to the tweet and warned that many people could lose money listening to Cuban calling his thoughts “straight out of ‘Dumb and Dumber’.”
Mallouk said that a basket of 100 stocks could outperform crypto with a high probability of a diversified portfolio outperforming over the long run.
“Only a fool would bet on a few stocks. Over the next 10 years, I’ll take the S&P 500 return against any group of stocks you want to pick and feel very good about it,” Mallouk said.
Cuban has been bullish on Netflix and Amazon for years and last year said Netflix was still a top holding. Cuban called Netflix well-positioned to grow for several years with global expansion. The entrepreneur called data the “new oil” and streaming a “global story.”
Last year, Cuban said Amazon remained his largest holding calling the e-commerce giant “the smartest company in the universe” and the “ultimate startup.”
Cuban said he started buying Amazon shares in the $500 to $700 range and called it a buy and hold strategy with close to $1 billion in Amazon stock as of last year.
Given the high-profile nature of the bet, it’s likely we will get regular updates from the two on how the performance of Netflix, Amazon, the S&P 500 and the selected crypto are holding up.
(Photo: Gage Skidmore/Wiki Commons)
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