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Exactly one year ago, Mark Cuban wrote on his blog that the stock market is for suckers:

The concept that you own "your share" of the company is a joke. You are completely at the whim of the CEO and board who will dilute you on a daily basis with stock options, then try to buy back stock to cover it up and push up the price, rewarding the shareholders who get out, rather than those that continue to hold the shares. Meaning you.

Cuban's post was a response to a comment from Thomas Hawk. Yesterday, Hawk followed up:

So here we are a year later (much too short a time horizon to matter by the way) -- where would you be if you took $100,000 and followed Mark Cuban's advice vs. mine?

For comparison purposes, I'm going to assume that two investors both had $100,000 to invest on January 3, 2006. Had you followed Cuban's advice (and I'm using the Vanguard Prime Money Market Fund) you would have today approximately $104,882.60.

Had you taken that same $100,000 and put it into the Vanguard Total Stock Market Index (a low cost basket of stocks that tries to roughly equate to the U.S. Market) today you would have approximately $113,890.00.

Posted by edelfenbein at January 3, 2007 10:31 AM