Mark Cuban’s Answers


wealthymatters.comI stumbled upon an old interview of Mark Cuban in Forbes Magazine.(The whole interview is available here: http://www.forbes.com/2010/11/03/billionare-mark-cuban-entrepreneur-dallas-mavericks-secrets-self-made-10.html).I found a couple of his answers worth remembering . Here they are:

On choosing a financial adviser:

3) How do you choose a money manager or investment advisor?

Someone who I can trust, has an idea every now and then, but most importantly can efficiently research my ideas and make the investments I ask them to make.

4) Talk about the most offbeat advice you followed.

I create offbeat advice; I don’t follow it. I rarely take third-party advice on my investments.

On the Importance of cash:

2) What financial advice do you have for someone who is newly rich?

Cash is king.

9) You have $100,000–where do you put it?

First I pay off all my credit card debt and evaluate paying off any other debt I have. What I have left I put in the bank.

Then I try to create as much transactional value as possible from that cash. I look at my annual budgets for everything and anything, and I look to see where I can save the most money on those items. Saving 30% to 50% buying in bulk–replenishable items from toothpaste to soup, or whatever I use a lot of–is the best guaranteed return on investment you can get anywhere. Then whatever I have left I keep in the bank and let it earn nothing. Why? Because then its available for when I get a good opportunity.

Every five years or so there is a bubble bursting or amazing deals available because of a change in the economy. Anyone who just kept their cash in the bank rather than in stocks over the past five to 10 years could be buying the home of their dreams for half price in most of the country. They earned good money in half the past 10 years on the cash, and even though they aren’t making much now, they have the transactional value available to them. Plus they have cash to invest if the market craters and, most importantly, they sleep great at night. Cash is king–and works far better than Ambien when you want a good night’s sleep every night.

Other Takeaways:

1.Work harder and smarter than the competition

2.Believe in yourself

 

 

 

About Keerthika Singaravel
Engineer,Investor,Businessperson

One Response to Mark Cuban’s Answers

  1. kim says:

    Interesting how the rich think

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