It is wise to follow the counsel of people that have done something similar to what you intend to do or are doing already, and who have a proven track record of success. This way, you get to be more conscious of their pitfalls, and you learn from the lessons they learned from their mistakes hence you get to make less unprofitable decisions and get better results more quickly. Let us know about ‘Mark Cubans Top Investing Advice’.
Mark Cubans Top Investing Advice
Mark Cuban is a self-made billionaire, popular TV personality, owner of Dallas Mavericks, and a successful investor. With this level of accomplishments, it is safe to conclude that he is doing something very right and thank goodness he is very open about what makes him excel so well in investing. In this article, Cuban’s advice to new and old investors, that will help you replicate his kind of success in this industry will be unveiled. So if you are thinking of going into investing or you are an investor who is tired of making so much terrible investment decisions that have landed you in more debt than wealth, then this short read is for you.
Check out some of his great thoughts below which he has shared over the years through blogs, books, interviews, and tweets.
1. Be a risk taker but never invest over 10% of your money in any market no matter how sure you are about it. Mark is a great advocate for taking calculated risks but investing your money courteously in them is the major key.
2. Always ensure that you save up at least six months of emergency funds in the bank against rainy days because they will surely come. According to him, having a cash cushion to ease the impact of these times can be a lifesaver. He further advises that before venturing into any investment, ensure that your emergency fund has been excluded from your available cash.
3. If you need to invest in the stock market, preferably buy an index fund. As much as the stock market can be a very tempting place to put your money, it is undeniable that it can be very volatile. Cuban vehemently insists that you save your heart the trouble and invest in an index fund if ever you decide to go into stocks.
4. Never always depend 100% on others’ opinions of an investment, learn to think for yourself, study the market and grow. He has stated many times that having different trusted financial counselors is not a bad step to take but investing solely on their advice will hinder you from gaining valuable experience.
5. Be disciplined in your spending, and live as a student. Cuban is ever willing to share his story as to how he lived frugally and saved more, which eventually paid off, hence his two cents advice to all investors is to always live below their means.
6. As much as Cuban advocates frugal living, he believes that one should never be too frugal you neglect to spend on expanding your knowledge. Yes, it means investing in good books. He said that sometimes one little idea from a book is all you need to move to the next level of success.
7. Stay away from the investments you lack sufficient understanding of the risk involved. According to sage Cuban, it is wiser to hold your money and wait patiently for a better opportunity than to dabble in clueless investments
8. It is okay to fear but never let it stop you from making critical decisions. In his book, “How to Win at the Sport of Business: If I Can Do It, You Can Do It.”, he explains that fear is not abnormal, but you must learn to step out despite your fears and make sound choices.
9. Cultivate the habit of paying off your credit card after every 30 days. Avoid piling up debt as much as possible. He advises that all credit cards should be cleared first before making new investments.
10. In business, time is vital. Hence Cuban says that as much as you need to be frugal in your spending, it is also important to go for some paid services like house cleaning that can give you more time to focus on important tasks.
Conclusion
In time to come what will differentiate you as an investor from another will be the good counsel you deliberately put to work consistently. It is therefore not enough to sit at the feet of the wise and jot down their lessons, the learning cycle is only truly complete when their words are taken to heart and put into action to the fullest. As you seek to gather knowledge and implement it, in no time, others will come to you for advice and applaud your growth. Finally we discussed about ‘Mark Cubans Top Investing Advice’.
Frequently Asked Questions (FAQs)
- Is it possible to pay one’s credit card in full every month as Mark Cuban advises?
Determination and discipline are key in achieving this. It is very possible especially when you make it a habit to always live below your means.
- Apart from investments, what other thing is Mark Cuban into?
He is also a philanthropist.
