- Mark Cuban is betting $1 million that Netflix and Amazon will outperform the S&P 500.
- He is additionally wagering $1 million that bitcoin or ether will beat the index over 10 years.
- Warren Buffett guess on the benchmark to beat hedge funds over a decade and received.
- See more stories on Insider’s business page.
The billionaire Mark Cuban is so assured that his two favourite shares and the highest cryptocurrencies will outperform the S&P 500 index over the subsequent decade that he is keen to guess $2 million on that consequence.
The “Shark Tank” investor and Dallas Mavericks proprietor agreed to a pair of wagers with Peter Mallouk, the CEO of Inventive Planning, a wealth-management agency.
Cuban tweeted on Thursday that he would stake $1 million on a 50-50 cut up of Netflix and Amazon inventory beating the benchmark over the subsequent 10 years. He mentioned he’d guess one other $1 million on Mallouk’s selection of both bitcoin or ether doing the same. Mallouk would guess on the S&P 500 in each instances.
The lads agreed to make the 2 bets after butting heads over the worth of a diversified portfolio and the long-term viability of cryptocurrencies. The argument was sparked by Mallouk criticizing Cuban’s promotion of Dogecoin, predicting that 99% of cryptocurrencies would find yourself nugatory, and touting shares as superior to crypto.
“Should you purchase 100 shares, odds are most go up,” Mallouk tweeted on Wednesday. “Should you purchase 100 cryptocurrencies, most will go to zero. Huge distinction.”
“Solely a idiot would purchase 100 shares or 100 crypto belongings,” Cuban replied.
To settle their dispute, Cuban and Mallouk agreed to transform $4 million into crypto, arrange smart contracts that may mechanically pay the victors in 10 years, and donate the proceeds to charity.
Their guess echoes a well-known wager between the billionaire investor Warren Buffett and the hedge-fund supervisor Ted Seides in 2007. Buffett staked $1 million on the S&P 500 besting a basket of hedge funds over a decade and won.