Mark Cuban on Why He Bought 1M Shares of J.C. Penney [VIDEO]

As long as the money keeps going into colleges, they’re going to take it, says billionaire investor Mark Cuban. CNBC’s Jim Cramer, provides perspective. Also Where is business investor Mark Cuban putting his money now? Cuban joined by Ranku founder and CEO Kim Taylor, discuss what the education start-up can do for potential online college students

Mark Cuban on Why He Bought 1M Shares of J.C. Penney [VIDEO]

Mark Cuban video and transcript below

so we have with us aery special guest, billionaire investor, philanthropist, and other hats he wears, mark cuban, is in the house. jim cramer has jumped on the set, as well. mark cuban is an old friend and a great guy. he’s just been a fabulous partof our efforts, and i’ve been a fabulous reporter of your efforts.great to see you. great to see you, too. we haven’t sat down at a table in a long time. i know. well, what you were doing — i ran out here, because i have two kids in college. i mean, yes, thank you. somebody has to disrupt it. yes. as long as the money keeps coming in to universities, they’ll keep on taking it.’s exactly what happened with the real estate bubble. the money kept coming in. why not take it? prices go up. you’re the only one talking about it. it’s, like, who is — i knew it was mark.yes, why is it — well, it’s a no-brainer, and yet people aren’t coming up with — well, right now, $1.2 trillion in debt. plus extra debt we don’t count in that number, right? what do you think it does to the economy? we have a whole generation that when they graduate, they can’t go out and buy things. they can’t buy houses. they can’t buy cars. yeah. and the generation, multiple,parents paying off the student loans, the kids are paying off the student loans. perpetuating itself. thank you for trying to breakthe cycle. and when you hear common sense, it’s, like, holy cow, common sense. somebody has to do it. they’re a great team. ranku has a great team. i’m thrilled to be a part of it. that’s your current investment. what’s your next investment? i was talking about personalized medicine. now, it’s more as it applies to the mavericks. obviously, our asset base is ourplayers. being able to add a few years, eliminate injuries, reduce injuries — what’s happening is the bodies are becoming a math equation, whereas we’re able to decode the genome.that’s happening faster and faster and faster. so i’ve been looking at different companies, you know, that break down the genome, that allow you to introduce new things, anything related to personalized medicine i’ve tried to take an interest there any particular company you have your eye on — not i’m going to talk about — not that i can talk about. i’ll tell you an aside, something interesting, with the mavericks, we’ve taken 23 and me, a consumer product. right. getting all of our guystested, getting the breakdown on our guys, because we’re looking for mutations. they’ve getten so advanced, we can look for mutations that might impact how we train them, might iact how we resolve issues if they get injured, how they might perform over time. we’re trying to build up a baseline of information to make us smarter, what i call bioanalytics. again, other than dr. james andrews, you never hear about medical people using this kind of — you know, you guys are a great lab.these are superhumans. we really are. it’s amazing the things we find out. we learn more every day. we’ve completely changed our training. we no longer have the strength and fitness coach. we have a director of performance technology.yes. it’s a whole different ball game. the net result will be once a player gets past 28, you pretty much know if he’s a keeper inthe nba. and most professional sporting. with all of this, we’ll be able to keep a bunch — most of our players able to play into their 40s. so, hopefully, it will have an impact. what was the last stock you bought? last stock was jcpenney. a million shares, a couple days ago. you are going to be so right. mike ullman will get it out of the wilderness. they raised a lot of capital. the guy that knocked it down, was take my bat and ball and go home. i don’t want to mention his name. gave a lot of people like you an opportunity. ullman is a uniter, and that wasa good company. and it can be a good company again. yeah.and they’re based in dallas, right? oh, right! so i have the stores, you know, and hopefully — have you met mike? no, i have not. hopefully, i will. yeah. i’m reaching out, because iwant to talk to him about things we’re doing on shark tank. love it. it is — i know it’s on another network, so i know i’ll get introuble — yeah, that’s okay. i want to talk to you — talking about jcpenney, i want to talk to you a little bit about how you feel about all of the agitating active investors. i like carl and what he’sdoing, right? but it’s a reflection of what the stock market has become. right? when you use — it used to be the thought was, when i went to business school, you own a share of stock, you own a part of the company. we’re no longer owners. and for the agitating investor like — that’s fine, right? you know, they deserve that opportunity. but the reality is they stand out, because people really don’t own stocks, don’t own parts of companies.they trade in and out and it’s become a platform more forhac+ing. can i ask you, do you agree that icahn should have more cash? yes, i do. they have so much. right? there’s a point of diminishing returns. i had microsolutions way back in the ’80s. if you retained too much cash, you had to pay it out or paytaxes on it, right? it’s not like there’s not precedent for ways to get it out there and incent them to spend it. look, apple is repeating what they’ve done through their entire history. something amazing, have this long lull that puts thembehind. okay — we’re running out of time? you’re the best. we talked to genetics, a company in that area, just yesterday. i’ll leave it there. mark cuban. thank you, jim. enjoyed it. great.

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More