By Timothy Gagnon
Mark Cuban, best known for his aggressive personality on ABC’s Shark Tank is a billionaire investor, entrepreneur, business owner, and NBA team owner. Mark Cuban’s business advice tends to be blunt and straight to the point. He doesn’t beat around the bush.
Today we’re going to share his best money and investment advice so you can find out the answer to ‘How does Mark Cuban invest?’ Keep in mind there’s no guarantee you’ll see the same success as Mark Cuban if you follow his investment formula.
Nevertheless, learning how to build your investments on a solid foundation based on smart money habits, along with market trends and data.
How does Mark Cuban invest his money. Get money + investing strategies from a top entrepreneur.
Mark Cuban on Savings
If there’s one thing most investors agree on, it’s that everyone should focus on building a nest egg of funds. There’s no way to predict when something will happen that requires a lot of cash.
Mark Cuban urges people to focus on building an untouchable nest-egg of funds that you can live on for at least six months. Though this money won’t grow much, it will provide you with a safety net in case things don’t work out as planned. And that’s why the savings cash is so important.
In the investment and stock market world, for every success there’s a failure and people often lose their entire life savings due to unpredictable events or reckless investment decisions. High risk investments don’t always lead to high-rewards.
In a nutshell, if you’re planning to build an investment portfolio, its best to focus on creating an emergency fund first.
Mark Cuban on Debt
Another piece of advice Mark Cuban shared regarding saving is to pay off your debt. It should be your number one priority to eliminate all debt because it tends to hold you back. If you have debt, hold off investing until you have paid it off completely. (The only reason to break this rule is if you have an employer match for your 401(k) account. Then be certain to invest in the plan to get the match!)
When asked in a recent interview and quoted in CNBC.com for his best savings advice, Mark Cuban said, “Don’t use credit cards”, and “Credit cards are the worst investment you can make.”
To be clear, it is okay to use credit cards as long as you pay them off every 30 days. On the other hand, making purchases on credit can lead to a lot of debt. Interestingly, 8 in 10 Americans have credit card debt. And this debt can keep you from building wealth.
If you want to invest like Mark Cuban, focus on paying back all of your debt as soon as possible, and don’t settle for credit card payment plans. It may be easier to buy products with credit but you’ll save more in the long run if you use cash.
Mark Cuban on Investing
“Mark Cuban told CNBC that while he’s not more bullish on stocks overall, he’s extremely optimistic about the future of technology.
‘I think we’re going to go through the biggest technological revolution we’ve ever seen over the next 10 years,” Cuban told CNBC’s “Squawk Box” on Monday.’”~CNBC.com by Anita Balakrishnan on January 30, 2017.
Mark Cuban is vocal about his tech investments. During the CNBC interview in January, Cuban touted his favorite stocks picks; Amazon and Netflix.
While some investors say shares in these companies are priced too high, Mark says they’re undervalued. In short, tech companies are taking over the stock market due to their potential for rapid growth.
Most of Mark Cuban’s investment portfolio contains shares from tech companies. In fact, his two biggest investment holdings are Amazon and Netflix. Amazon, according to Mark Cuban, will only continue to grow as its artificial intelligence systems evolve. He also believes, in his own words, that Amazon is “the greatest start-up and the greatest company in the world”.