Former NBA star turn entrepreneur Baron Davis acknowledges that bear markets suck, but could ultimately prove opportunistic for investors with patience and long-term time horizon.
"You have to get back up and you have to keep keep pedaling. In a time like this, does it hurt? Like, absolutely," Davis said on a new episode of Yahoo Finance Presents.
Davis — who was also an early investor in VitaminWater (which Coca-Cola purchased for $4.1 billion in 2007) — says now is a good time to surround yourself with the experts that could be helpful in charting a path to regaining one's wealth lost as a result of the downturn in stock markets.
"This is a perfect time to surround yourself with experts and people you can learn from. I think this investment opportunity in this market could be very, very opportunistic," Davis added.
To be sure, the pullback in stocks this has been painful for the majority of investors.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are all down by double-digit percentages on the year as investors fret over inflation's impact on households. At the same time, a more hawkish Federal Reserve eyeing stomping out inflation is lowering expected future returns on stocks by aggressively raising interest rates.
As for Davis — who earned a reported $147 million in salary over a 17-year career in the NBA — he is focusing his investing efforts on the metaverse and NFTs, rather than just the stock market.
Davis has also teamed up with alcohol maker Hennessy to support its “Never Stop, Never Settle Society.” The initiative offers Black entrepreneurs funding, resources, and infrastructure to help improve their communities.
"I think that these are timely opportunities that don't come around often. This is a great time to be a builder, too. I would say [it's good to] be building something in a space where a lot needs to happen," said Davis.