While American businessman and “Shark Tank” television personality Mark Cuban does own a handful of U.S. equities, he prefers fistfuls of cash at his disposal as opposed to allocating a large portion of his capital to risky investments.
The billionaire entrepreneur and National Basketball Association team owner of the Dallas Mavericks did disclose his current U.S. equities positions in two FANG (Facebook, Amazon, Netflix, Google) stocks–Amazon and Netflix, which comprise his two largest holdings.
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“If you look at where growth is coming from and where uncertainty is being driven, particularly with tariffs, the companies that will impacted the least by tariffs are FANGs,” said Cuban. “The companies that will benefit the most on tariffs by other types of companies and drive interest more towards their companies are Amazon, Netflix, Google, Facebook, etc.”
Even in the current bull market, Cuban prefers to keep his exposure limited to stocks while keeping lots of cash available at his disposal. With cash on hand, Cuban can make the necessary capital investments if an opportunity catches his fancy.
“I’m down to maybe four dividend-owning stocks, two shorts, and Amazon and Netflix and I’ve got a whole lot of cash on the sidelines,” Cuban said. “There’s no way where you can say, ‘I just trust everything that’s going on,’ and that concerns me.”
Cuban’s uncertainty regarding increased government spending despite the latest economic data showing growth, such as a 4.1% increase in the gross domestic product during the second quarter, gives him enough pause with the market. While stocks don’t rule his investment world, cash, in his estimation, is still king and with a purported net worth of $3.3 billion, Cuban has plenty of it.
“I’m ready, willing and able if something happens” said Cuban.
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