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Mark Cuban: How I Became a Billionaire

by icosuccess

Mark Cuban 0:00
I’m concerned about both I think the market is overvalued. I think it’s almost impossible to predict where consumer and corporate demand is going to come from. It’s, you know, and because of that it’s hard to create a valuation for for businesses.

Reporter 1 0:16
Even in the so called stay at home stocks mark, which you know, are so clearly benefiting, whether it’s a Netflix or a broadband provider, a zoom video, I mean, there are a number of stocks which are holding up quite well because of the times we’re living in.

Mark Cuban 0:31
So there’s no question. I mean, look, I’m a holder of Netflix and Amazon. So I’m not saying there aren’t stocks that will benefit they are. But when we look at the market broadly, it’s very difficult to project what’s going to happen in terms of demand. I mean, business has been fundamentally changed consumer consumption has been fundamentally changed.

You know, you had the PNC CEO talk about how online purchasing has gone up so significantly within his business and banking is the most complicated of all processes for consumers to do online. So you’re seeing it that we’re seeing that there, we’re gonna see it even more so in other industries. Do you

Reporter 2 1:07
have such a good paycheck pulse check sorry, on on small businesses market. How concerned are you about whether or not they’re getting the temporary funding that they need? The very fact that the PPP second tranche didn’t run out in the same pace that the first tranche? Did? Does that suggest that everyone that needed the money has got the money or not?

Mark Cuban 1:28
No, it’s the exact opposite, that they don’t know how to use it. And there’s companies that are choosing not to take it because of the rules associated with that. I mean, there’s really a catch 22 for small businesses right now. On one hand, they’d like to open up but in some cases, municipalities, states, counties, whatever are keeping them from opening, but even if they are able to open, they’re not able to get their employees to come back because they’re making more from unemployment.

And can add to that the eight weeks may not match up with the time at the time and that they’re able to get open to it. So you have a lot of this uncertainty. And that’s holding businesses back, we did a survey in Dallas, for the first opening of the first weekend we’re opening in Dallas, and only 36% of companies even opened up. So there’s a lot of consternation, there’s a lot of uncertainty and that’s holding businesses back.

Reporter 1 2:18
So what do you think is gonna happen there? I mean, do you think ultimately, the government is going to have to pass another package? Because it’s a myth? And we’re going to need money for a lot more than eight weeks? Or are we just going to say, are we about to see a huge wave of closing closings for small business?

Mark Cuban 2:33
We’ve got a problem because we’re not working from a foundation of data, we’re kind of guessing. And from from my guess, I think what we’re missing is consumer demand, that if businesses were able to fulfill demand, they would find ways to open but it’s not just about physically opening up locations. It’s just that consumers don’t feel confident to spend money right now.

So from my perspective, I’d like to see a stimulus that supports customer demand consumer demand, I would rather see us give out debit cards, if you will, that say, Here’s $1,000 that you have to spend within two weeks, and preferably locally, so that we stimulate demand. Because no matter what we do in terms of trying to keep employees employed, if there’s no demand for those companies, they’re not going to survive, they’re going to be zombie companies.

But on the flip side, if we do create demand, and you force people to spend it, unlike the 1200 dollars or so, I think savings rates have gone up to 14%. If we stimulate that demand, then businesses have a way to stay open. And even if they can’t get physically open, they’ll have demand that they hopefully can meet via online services. And so we’re going to have to stimulate demand without demand, we have no economy and with all the stimulus we could ever possibly hope for just keeping employees attached to businesses doesn’t really help because they’re not really being productive.

Reporter 2 3:52
mogh there’s definitely demand right now for live sports. Where are we on the NBA?

Mark Cuban 3:58
not close enough. I mean, it’s still safety issue. I mean, the minute that we can know that we can safely that we can protect our athletes and essential personnel, we’ll do our best to get open. I mean, you know, like I’ve said before, we’re, you know, the mouse will use the White House protocol, and we’ll do whatever the White House does. If we feel certain that we can protect our employees like the White House does, then, you know, we’ll open up our practice facilities and push to go to work, but we’re not there yet.

Reporter 1 4:24
In your mind, but what does that look like exactly what they play at their home arenas? Would they be flying all over play and play in one designated area? Would you even be able to go to see the game? I don’t know.

Mark Cuban 4:37
I think it’s going to be a Hotel California approach where we pull people into one big location, let’s say a hotel, or facility that’s got thousands of rooms and maybe an arena attached to it and play all our games there. You know, might be Vegas, it might be Orlando, who knows. But in that type of environment, hopefully we can test people when they come in, keep the players keep essential personnel, maybe even their families.

They’re knowing they’ve been tested and Say. And then as the regular season ends, some people leave and then as teams are eliminated from the playoffs, that population reduces. And I think that’s our best approach. But I don’t think we’re still to the level of confidence where we can do that yet.

Reporter 1 5:14
But you think it’ll happen before the end of the season? We’ll still have a playoff.

Mark Cuban 5:18
Yeah. I’m hopeful that we will have a season and we will have playoffs. I mean, we’ll do it on a made for TV approach, because I think people want sports. I need it. I need my Mavs back.

Reporter 1 5:30
A lot of people would agree with you, Mark Cuban, thank you for joining us. Always good to get your read.

Mark Cuban 5:34
Thanks, guys. Appreciate it.

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