Mark Cuban's Best Investment; Snap Inc Barred From S&P

This week, we found out that Snap, Inc will not be allowed to join the S&P 500, an index that tracks 500 companies across various industries in an effort to measure the overall fluctuations in the economy. The reason that they will not be afforded the chance to join is one that could have further consequences for Snap, as well as other companies who are structurally similar.

When Snap, makers of popular (though increasingly less so) app Snapchat, issued their first Public Stock (IPO) this Spring, the shares that they sold do not have the right to vote on company business decisions, such as mergers/acquisitions, vision, ect. In Snaps' situation, CEO Evan Spiegel and CTO Bobby Murphy own the shares with 90% of the votes companywide. This move by the S&P index would presumably and effectively ban any company that organizationally has too much 'power' concentrated among a few people.

One reason this has sent the stocks of Snap, Inc (+1.07%) down recently is that with the increasing popularity of Index Funds [1], this would mean that the stock of Snap, Inc is less widely traded than would otherwise be the case.

[1] - An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500 via Investopedia.com

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What Does Mark Cuban Say Your Best Investment Is?

"Learn How To Sell!" - Mark Cuban

There are many great stories about Mark Cuban, ever the grinder, selling products. For example, when he wanted new basketball shoes as a child, his father told him he had to earn the money, and buy them himself. So, young Cuban went door to door selling trashbags until he had earned himself enough money to buy his own.

When he purchased the Dallas Mavericks with his Broadcast.com IPO money, they were fresh off being voted the worst professional sports franchise of the 90's. As you can expect, they did not have much of a season ticket base. So, to remedy that situation, Mark set his desk up in the middle of the sales office with a phone book, and dialed numbers alongside the rest of his sales staff.

Mark Cuban is not alone in thinking that sales builds softs skills; the communications skills that are so important in the workplace. If you think of selling something as explaining the ideas and motifs behind it, it can be applied to anything.

Here are 5 Reasons why Cuban feels that sales jobs make you successful:

1. You learn persistence

Salespeople hear the word no all the time. Over time, you'll start to see a no as a challenge, not a rejection. And you'll figure out what to do next.

2. You build self-discipline

When you work for a big company, you can sometimes sleepwalk your way through a day and still get paid. When you work on commission, your credo is, "If it is to be, it's up to me." Working in sales is a great way to permanently connect the mental dots between performance and reward.

3. You gain confidence

Working in sales is the perfect cure for shyness. You'll learn to step forward with confidence, especially under duress or in a crisis.

4. You learn to negotiate

Every job involves negotiating: with customers, with vendors and suppliers, even with employees. Salespeople learn to listen, evaluate variables, identify key drivers, overcome objections, and find ways to reach agreement--without burning bridges.

5. You learn to close

Closing a sale is part art, part science. Getting others to agree with you and follow your direction is also part art and part science.

Many people find it hard to ask for what they want. If you want to lead people, you must be able to explain what you want -- and then close. That's why great bosses know how to close.

About:

Andrew Leonardis is an Account Executive with LoanDepot Wholesale focusing on Broker and Correspondent lending, but is also an experienced Loan Officer. Andrew studies, follows and researches economic, financial and mortgage market related topics. Please reach out with any questions/comments on the article, or with any mortgage related scenarios to [email protected] or 609.254.4976

Sources:

LATimes- Link Here

Inc. Magazine- Link Here