Mark Cuban is an entrepreneur, NBA team owner, investor and panelist on CNBC's "Shark Tank." Cuban has done many interviews over the years. In those interviews are key takeaways that investors can follow to try to have success like the billionaire.
Related Link: 5 Things You Might Not Know About Mark Cuban
Be Careful With Risk: Cuban has not shied away from risky investments but cautions that it should be done in small amounts. Only invest 10% in risky investments as items are only worth what somebody else would pay for them, Cuban told Vanity Fair.
Cuban cautions that if you don’t understand the risks, it might make sense to wait and learn the process over time before jumping in.
In fact, Cuban is currently hedging against his holdings, given the high market valuations - CNBC.
“There will be a deflation of some sort in those appreciable assets and it’s going to be scary when that happens," he said, pointing to a 0% interest rate and wide speculation.
Be Patient: Cuban has advocated that investors put their money in the bank and save six months of their income.
Cuban says investors should consider investing in the market by starting with low-cost mutual funds. The entrepreneur also says to not watch the market too closely.
Investing in a low-cost index fund takes discipline and could take time to produce strong returns, as compounding gains could outperform selected individual stocks over the long term.
“When you don’t know what to do, do nothing,” Cuban has listed as one of his top rules.
Buy Good Companies: Cuban says to buy good companies that do good things. Over time, the good companies will win out in 10-year and 40-year periods.
Invest In Yourself: One of Cuban’s favorite pieces of advice is to invest in yourself, according to Inc. Cuban says his best investment advice is to put in the effort and time to invest in yourself.
While it is time-consuming to learn new skills and improve connections, Cuban said it is the most rewarding investment there is.
Photo Credit: Courtesy of Mark Cuban's Instagram.
