You might have heard this billionaire's name, but who is Mark Cuban and how did he make his money? It's possible you know him as one of the sharks on the hit show “Shark Tank," but Cuban is more than just a TV personality -- he’s also the owner of the Dallas Mavericks and a successful investor. In fact, Mark Cuban's companies are so successful that he made his first million in 1990 after selling his business to CompuServe and then earned a $5.9 billion paycheck after he sold his online streaming audio service to Yahoo in 1999.
Cuban knows how to be rich and successful, and he isn’t afraid to share his insight.
1. Be a Little Bit of a Risk Taker
Talk to any self-made millionaires or billionaires and they might preach the importance of taking calculated risks. Sometimes, risks and rewards go hand-in-hand, as Cuban pointed out in a 2017 interview with Money magazine while discussing the value of investing your savings. He explained that it's possible to save a million dollars, but only if you’re disciplined and take risks. Many who achieve higher levels of financial success aren’t afraid to invest for the betterment of their future -- whether they’re investing in the market, a business or their education.
2. But Only Invest Up To 10% in Risky Investments
If you do take risks in the investment realm, limit the amount you contribute.
"If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10% and put it in bitcoin or Ethereum, but if you do that, you’ve got to pretend you’ve already lost your money," Cuban told Vanity Fair. "It’s like collecting art, it’s like collecting baseball cards, it’s like collecting shoes -- something’s worth what somebody else would pay for it. I’d limit (risky investments) to 10%."
3. Put It in the Bank
In an exclusive interview with Young Money, a personal finance education and media company, Cuban offered this general investing advice and then followed the statement by saying, “The idiots that tell you to put your money in the market because eventually it will go up need to tell you that because they are trying to sell you something. The stock market is probably the worst investment vehicle out there.”
Although some investors believe the stock market is the ticket to wealth, others believe the market is too risky and volatile. Your stock can be profitable one day, yet it only takes one downturn to lose it all. Rather than put all your eggs in the stock market, Cuban encourages keeping some money in a savings account for a rainy day so you're protected if something goes wrong. In his own words, “Buy-and-hold is a sucker’s game ... Those who put their money in CDs sleep well at night and definitely have more money today than they did yesterday.”