This is a partial transcript from "Your World with Neil Cavuto," November 16, 2005, that was edited for clarity.
NEIL CAVUTO, HOST: My next guest made a fortune in the Internet, but sensed that maybe the bubble was about to burst, got out with a fortune, literally, made him a billionaire. What does he make of the hot housing market now? Is it a case of déjà vu?
Who better to ask, Internet pioneer, owner of the Dallas Mavericks, Mark Cuban?
Mark, good to have you.
MARK CUBAN, OWNER, DALLAS MAVERICKS: Thanks for having me, Neil.
CAVUTO: I always look back on you with great fascination, because you got out and sold your company at just at the right time. I mean, had you waited even a couple of months, it would have been over. But you didn't.
And now people are saying, you know what? That bubble will pale in comparison to what's about to happen to real estate.
Do you agree?
CUBAN: No. They're completely wrong.
The difference is, I couldn't live in an Internet stock, but everybody still has to pay for housing. And the way I look at real estate, from an individual perspective, a consumer perspective, is that, when you buy a home, you're paying for your living costs. And any appreciation you get and any equity development you get is just upside. It's a completely different type of market.
CAVUTO: But not everyone is living in that home, right? Some are buying it for investment purposes only.
No, there's no question that there's speculation going on. But there's speculation that goes on in the stock market ever single day, but there's not enough of it to undermine the market. And that's the same thing with real estate.
You know, people point to a lot of different statistics. They point to different markets, you know, in Las Vegas, in Miami, where people just flip condos. But the reality is, that's a small percentage of the overall market.
And, you know, even if the market were to decline by 10, 15, 20 percent, you know, the speculators get hurt a little bit, but the typical consumer, they still have someplace they have to live. And, so, they go along line, whereas, with the stock market, when you are watching your account just dissipate and you are going from your life savings being cut in half, people tend to freak out and panic. And you don't see that in housing.
CAVUTO: You know, while I have you here, I just want your thoughts on Google (GOOG). It came very close to $400 a share today. A lot of people in the camp it's going to go to $500, $600. They're all over the map, but they, generally, say a lot of hundreds more. Are you?
CUBAN: I'm actually bullish on Google as a company, but with a high risk factor. They really are the Microsoft (MSFT) of 2005.
CAVUTO: But you don't think they're priced for total perfection now?
CUBAN: They are priced — and that's what I was saying.
There's a high risk factor. You know, they're living off their pay-for-click advertising, like Microsoft lived off of Windows and Office. But Google is seriously at risk.
If they're able to continue innovating, which they have been very good at, then they could hit, you know, a much higher price. But, that said, what's changed today vs. the mid-'90s is that it's a lot less expensive for, you know, a college-age entrepreneur to come in with a great idea, and just, you know, preempt Google, preempt Yahoo!
So, the risk is dramatically higher, but, you know, Google is smart, and, I think, recognizes that. But if they continue to perform and continue to come out with new services, like Base and their classifieds, and all the different things they're doing at the rate they're doing, they have a good shot of hitting $500 or $600.
But, at the same time, it wouldn't shock me if we wake up one morning and, you know, there's little companies like Gooey and Net 5's and all these different search engines that could topple them in months.
CAVUTO: Could I ask you something?
CAVUTO: I know you voted for the president last time. You don't get actively involved in politics, but you supported the guy. He's down in the polls, not looking too good. What do you think is going to happen?
CUBAN: You know, the Republicans are struggling right now, but it's not like it's been a windfall for the Democrats. I mean, there's just a lot of uncertainty and just a lack of confidence.
CAVUTO: Well, does it have to be? Does it have to be? In other words, if the party in power is doing poorly, the party out of power can just step back and watch them self-destruct, right?
CUBAN: Well, honestly, my personal opinion is, the more balance there is, the better it is for the country because there are no agendas that just get to get ramrodded through.
And so, even though it's bad for the Republicans, I think creating some level of balance after these upcoming elections might be good overall for the country.
CAVUTO: OK. Mark, thanks. Always great seeing you, Mark Cuban in Dallas — the owner of the Dallas Mavericks.
CUBAN: Always. Thanks, Neil.
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