Famed American business magnate Mark Cuban has some sharp words for investors who bought Facebook (FB) shares on their first day of trading and are now crying about the company’s plummeting stock. In a post on his personal Blog Maverick page, Cuban says that investors should have absolutely known what they were getting into when they plunged their money into yet another risky tech IPO and added that it’s wrong to blame Facebook for charging $38 per share when people were willing to pay for it.
“Facebook was able to raise about 10 BILLION DOLLARS in this IPO,” Cuban writes. “The CFO’s job is not to manage shareholder portfolios. His job is to help Facebook succeed. I don’t know about you, but putting 10 BILLION DOLLARS in the bank in my opinion is one way to help them succeed.”
Cuban also discloses that he bought some Facebook shares early on, figured out they were going to hurt his portfolio, and promptly dumped them back on the market.
“When the stock didn’t bounce as I thought/hoped it would, I realized I was wrong and got out,” he writes. “It wasn’t the fault of the FB CFO that I lost money. It was my fault. I know that no one sells me shares of stock because they expect the price of the stock to go up.”