Capitalism will become more “compassionate” as a result of the coronavirus pandemic, billionaire entrepreneur Mark Cuban said Wednesday.
“I think capitalism is going to become a lot smarter and a lot more compassionate because of what we’re going through,” Cuban said on CNBC’s “Closing Bell.”
Cuban, owner of the NBA’s Dallas Mavericks, said he thinks executives will now recognize that they need to put employees first.
“It can’t just be about shareholders,” Cuban said. “In fact, you have to put employees ahead of shareholders.”
Cuban has been outspoken in recent weeks as the coronavirus pandemic intensified.
Cuban has warned businesses against sending employees back into the office too soon and put pressure on Washington lawmakers to support workers who are impacted by the economic shock. He’s also said any company that receives government aid to weather the pandemic should be prevented from buying back stock.
Last month, Cuban said he had been “dipping my toes” into the stock market on down days as he looked to capitalize on coronavirus-driven declines.
He said then he was mostly buying the SPDR S&P 500 ETF Trust, the exchange-traded fund that tracks the S&P 500 index.
Cuban’s comments in mid-March came a few days before the S&P 500 hit its current, coronavirus-driven bottom on March 23. The index was up more than 20% from those lows as of Tuesday’s close.