what’s that the leave nation I started
to mentor me series with the goal to try
to hang around people a little bit
longer who’ve done more than us and by
staying with them and learning from them
hopefully some of their strategies their
wisdom their mindset seeps into us to
help us become the best version of
ourselves so today we’re going to learn
from Mark Cuban on his investing
strategy mentor me mark also as always
guys as you’re watching if Mark said
something that really resonates with you
please leave it down the comments below
put quotes around it as well to other
people can be inspired and when you
write it down it’s more likely to lock
in for yourself as well enjoy
you
what if I offered you 1.25 million
dollars to sell the whole company Marc
you’re saying screw the other sharks yep
I like what you guys are doing I want
you to come back to me with a percentage
I don’t want you to even talk to these
guys you’re asking him to take that
option with you right now and of Moreh
you’re not a very nice guy thought about
being wonderful no no I have that title
thing about making a business decision
right hi I’m Mark Cuban I’m a bully look
at me what’s batted down like like I
said guys you got to pay to play
attention in this room I can feel it
it’s offensive
you got a shot here right don’t let
these guys drag you down are you really
interested in it I like the idea you
really think cooking bacon bedside is a
good idea
I loved your passion I love your
knowledge I’m waiting for the bite yeah
there’s a but coming
you’ve got a 24-second shot clock
$750,000 I’ve never seen weed like that
that’s unbelievable great you broke up
with your potential partner without even
looking at them you’re a savage just a
lean mean shark machine baby if I say
yes to whatever your Conor is you have
to tell me that you will say yes
immediately and we have a deal $100,000
wait a minute for 20% equity gone Donna
done you like that Barbara I don’t like
it what did Dan Soder that’s a
compliment to you Barbara I screwed you
but it’s a compliment in you this isn’t
a rose garden
it’s a shark tank and you know what
sometimes you got to take the bite and
sometimes you’re the chump so what is it
that you’re really looking for mark when
you choose to say I’m in I’m going to
make you an offer I really don’t have
any one thing um I try to to be
objective about each company but I guess
I look for something that’s
differentiated I look for something
that’s timely I look for some somebody
who I think can run the company that’s
committed to it I look for someone who
does their homework and I look to see if
I can add value to it is it something
that works for me because if it’s
something you know the frozen-food
business with big shifting you know
because they’re not your thing and what
your your area in next-gen you know I
don’t you know it’s not so much
connections it’s more okay it means I’m
going to have to put in the time to work
at this and because otherwise it’s not
fair to the entrepreneur and do I have
the time and that that
I mean you hear me say it over and over
again time is my biggest constraint it’s
it’s more valuable to me the money from
one thing you can’t get back and look
I’m not here to tell you that times
always been my most valuable asset when
I was sleeping on the floor I plenty of
time right on it and um it’s just you
know as you get older I think more than
anything else and as you have a family
time becomes your most valuable asset
and that that as much as anything else
impacting business that makes the
markets have been going through these
wild gyrations rights don’t seem to have
a clear sense of what direction is up
how do you interpret that as somebody
who’s spent a lot of time put on my you
know manage the portfolio trader hat and
not too much a try but manage the
portfolio it’s great you know um anytime
there’s volatility and any type time
there’s change there’s opportunity now I
say it’s great because I’ve taken a
whole different approach to investing
than most people you know I think buy
holds a caucus I think you know the idea
that you always have to invest your your
cash is not far behind and so I’ve
always been of the attitude that unless
you really have a commitment to
something just keep your money in cash
knowing that at some point in time
there’s going to be a week or two like
we’ve had but how much time I mean a lot
going on in your life how much time you
have to actively manage your portfolio
through these 500-point markets which is
that’s the whole thing I don’t have to
spend much time until just until it hits
the fan right so I mean I’m not hitting
the family’s ex exactly right and that’s
where the opportunity is like I won’t
look at my portfolio or you know I get I
get a repay you know a one-line
one-number statement every day from my
bank and you know that tells me if
anything weird happen and I won’t even
look at it but then when everything
starts getting crazy I call it the world
series of investing you know that’s when
you start digging in and it’s because of
the approach that I take so you know
back in 2006 and 2007 I was writing
blogs saying look the stock markets for
suckers you’re getting put you know when
you sit down at the business table you
always look for the sucker and if you
don’t see it it’s you and you’ve got all
these professional people on the other
side of the trades I mean when I started
trading stocks in the early 90s after I
sold my first company you know you could
understand different elements of the
market better than the professionals so
I can understand you know new technology
from Wellfleet and Synoptics and all
these old technology companies better
than the traders today there’s so much
money in these huge hedge funds and then
they have such professional research and
in-depth research there really aren’t
any advantages for the individual
traders and so my approach has always
been unless I know something specific
put it in cash and so and so what are
you investing in what are the areas that
well what I do you know what I did when
I in 2008-2009 I put everything into MLP
s and M rate some mortgage-backed
securities ones that I thought were the
better companies um and I just piled it
and I also piled into Australian bonds
because I thought the economy was good
next to China was my way playing China
so you make one-way bet this isn’t
portfolio balancing your doll that asset
management you know diversification
that’s for idiots right because you
because you can’t you can’t diversify
enough to know what you’re doing what I
did was I said self self there’s going
to be a lot of volatility so I bought
put took a little bit of money and
bought out of the money calls on this on
the spider calls I bought on the S
standard & poor’s day SP 500 and I did
the same thing on the diamonds which is
the Dow Jones so I bought those long
we’re not when the stock prices cratered
and then when we had the big not today
but the big run-up before I bought a
bunch of puts knowing that even though I
was paying for a lot of volatility that
I thought there would be a lot of swings
in the market and so I thought yours are
spread non-volatile just that number how
long is that going to last in your view
no idea and that’s the whole thing right
people aren’t buying intrinsic value in
companies anymore the whole Warren
Buffett approach works great for Warren
because he can put a three billion
dollars into an investment and take a
whole different approach than John or
Sally doe investor who can’t do yep so
you say buy and hold as a crock of
something right I can’t remember exactly
I NOLA yeah and and you said that
portfolio balancing is a waste of time
so what are John and Sally goes supposed
to depends how much money you have right
so the best way to get a return let’s
just say you have $50,000 in cash
it could be 10 it could be a hundred but
you know let’s use fifty first thing I
would do is pay off all your credit
cards because that’s costing you
eighteen percent that’s what John and
Sally should do first most don’t write
there’s more credit card and student
loan debt relative to personal income
than has ever been in the history of the
United States second thing you do is you
use the transactional value of cash a
lot of people say you know you’re losing
money to inflation when you just have
cash in the bank completely disagree I
can you know I know I’m going buying a
bunch of suit toothpaste for my family I
know toilet paper I know all the
consumables that I have I can take my
cash and go get a better value I can
take my cash and go my store up yeah
yeah why not I mean how much space is
toothpaste take you know but you’re
going to say that but that’s the whole
thing the time it takes just to figure
out your budget
there’s nobody does the time it takes
just to analyze your spending habits you
can get a better return and you’ll end
up with more cash than trying to fight
the the John Paulson’s of the world and
these guys who who have hundreds of
analysts who are working for them why
would you try to do better than them you
can’t win you can’t and now it’s a
hundred times worse because of all the
the program trading but if you have
enough money that you have to put some
of it somewhere to park some of it
somewhere and hope to make a return on
it where do you put it you know what I
do I don’t I don’t think you have to
make a return on it because I’d rather
sleep well at night you know I put it in
cash literally now obviously I’m in a
different position where I don’t have to
live off of the interest pay me one
basis point off a glass right but at the
same time that having that dry powder if
you will available when weeks like today
or the weeks like this week hit and days
like yesterday and today and happy an
opportunity and you see an opportunity
then you’re ready to take it as opposed
to saying I can’t get out what am I
going to do and I’ll tell you the other
part that’s better you’re going to cut
your health costs because you’re going
to sleep a whole lot better at night
sleep well oh I sleep like a baby don’t
use credit cards of all the investments
you’ll ever make pain pain nineteen
percent or you know where eighteen
percent on something is easily as easily
the dumbest um
that’s money that you should be keeping
you can be saving it’s a different world
now because you can be a smart consumer
you know you you have the ability to
price check anything on Amazon or
Walmart calm and you know what you need
to say for put it on layaway with them
now and ended up I had so many credit
cards cut up I actually I was cleaning
up some stuff and some my old credit
report
Sears Amex Visa Kaufman’s he’s old I
mean the situation I was in was like
anybody who would give me a credit card
I would use because I didn’t have any
money so I needed to use it and so I
literally there someone flipping the old
chunks of my old credit card somewhere
so you know stay away from credit if you
have a 401k match you don’t do it for as
much as you can possibly force yourself
to do you’re an idiot if you don’t have
a 401k then there’s so many esoteric
dumbass banking rules right where you
can’t just put $10 or $20 into the bank
because of all the service fees they’re
going to crush you
right and so there’s a variety of new
things and opportunities that are coming
up where if you can get yourself to put
in on $10 a week
$20 a week $100 a month if you’re 21 and
you put in a hundred dollars a month and
you put it into a vanguard index fund
let’s say hopefully you’ll be able to
increase those amounts and so literally
if you can train yourself to save 100
bucks a month and grow it as you earn
more you’re going to be a millionaire by
the time you retire if you don’t trigger
to be in the same boat I was at 27 and
broke or trying to figure it out or you
know others at 50 or 60 will have
nothing the opportunities exist and if
you can invest in just a you know a
stock index fund SPX bond Vanguard I
mentioned because um it’s the lowest
cost do it do it do it do it do it do it
two less beers know these days one less
be one less fireball shot and you can be
rich have those first five fireballs but
those last two that’s
we sell the company and I don’t remember
the exact price of Yahoo stock goes like
$250 and from my perspective this is
this is April 2000 when it closed and
you know I don’t see the stock market
just going up forever I mean literally
the Nasdaq just passed 5,000 which is
where it was back then in 2000 and I’ve
you know like I said I traded stocks I
had started and sold a hedge fund and so
I understood what happens in the market
and gravy trains don’t last forever and
so I’m like look this was crazy I mean
it’s always been a little crazy but it’s
getting even too heated and so I had to
wait six months before I could hedge my
stock meaning by an offset in case it
went down so I literally took every
penny I had 20 some million dollars in
cash and I bought a put again on an
index against the entire market and that
foot was for six months knowing that it
got me to the point where I can hedge
all my Yahoo stock and in case you know
but if the market crashed prior to that
I was as good as I could be the market
didn’t crash I lost every penny but the
minute I was allowed to I hit everything
everything everything right everybody
thought I was an idiot there’s literally
a CNBC interview where he said mark
don’t you feel stupid Yahoo stock is up
another hundred dollars and this by this
time I’d already sold the math and I
remember sitting on the team bus talking
to our Dan coach and one of our coaches
um Joe Harris and he goes look at all
that money he left on this table and
like literally in one day the stocks
were jumping so crazily one day I paid
for the entire Mavericks in the stock
move up one day and they’re like but you
left all this on the table and I’m like
patience patient I did an interview on
CNBC and he goes don’t you feel horrible
that you left you know billion plus
dollars on the
it’s on tape because I said yeah I feel
really bad driving or flying around in
my g5 you know this is horrible because
everybody thought I was an idiot even
people who work for me I told everybody
and Todd listen some people did some
people did because every single person
who had worked for us for more than a
couple months was least on paper a
millionaire and that was 300 plus people
and so we had a lot of lot of smiley
faces around the office I’m like look
and they’ll see you were wrong and
stocks going up and then you know the
bubble burst and I won and you know it’s
unfortunate a lot of people got crushed
but you know I because I had hedged
everything I actually benefited in some
respects and came out further ahead
thank you guys so much for watching I
hope you enjoyed I’d love to know what
did you think of the video what would
your favorite clips what was the lesson
that struck home most for you what are
you going to immediately apply to your
life or your business leave it down in
the comments below I’m super curious to
figure out what you guys thought and I’m
going to join in the discussion I also
want to give a quick shout at the froude
a thank you so much for picking up a cup
of my book your one word and doing that
awesome review on your YouTube channel
I really really really appreciate the
love man today we have a great book your
one-word by Evan Carmichael so thank you
guys again for watching I believe in you
I hope you continue to believe in
yourself and whatever your one word is
much love I’ll see you soon
to mentor me series with the goal to try
to hang around people a little bit
longer who’ve done more than us and by
staying with them and learning from them
hopefully some of their strategies their
wisdom their mindset seeps into us to
help us become the best version of
ourselves so today we’re going to learn
from Mark Cuban on his investing
strategy mentor me mark also as always
guys as you’re watching if Mark said
something that really resonates with you
please leave it down the comments below
put quotes around it as well to other
people can be inspired and when you
write it down it’s more likely to lock
in for yourself as well enjoy
you
what if I offered you 1.25 million
dollars to sell the whole company Marc
you’re saying screw the other sharks yep
I like what you guys are doing I want
you to come back to me with a percentage
I don’t want you to even talk to these
guys you’re asking him to take that
option with you right now and of Moreh
you’re not a very nice guy thought about
being wonderful no no I have that title
thing about making a business decision
right hi I’m Mark Cuban I’m a bully look
at me what’s batted down like like I
said guys you got to pay to play
attention in this room I can feel it
it’s offensive
you got a shot here right don’t let
these guys drag you down are you really
interested in it I like the idea you
really think cooking bacon bedside is a
good idea
I loved your passion I love your
knowledge I’m waiting for the bite yeah
there’s a but coming
you’ve got a 24-second shot clock
$750,000 I’ve never seen weed like that
that’s unbelievable great you broke up
with your potential partner without even
looking at them you’re a savage just a
lean mean shark machine baby if I say
yes to whatever your Conor is you have
to tell me that you will say yes
immediately and we have a deal $100,000
wait a minute for 20% equity gone Donna
done you like that Barbara I don’t like
it what did Dan Soder that’s a
compliment to you Barbara I screwed you
but it’s a compliment in you this isn’t
a rose garden
it’s a shark tank and you know what
sometimes you got to take the bite and
sometimes you’re the chump so what is it
that you’re really looking for mark when
you choose to say I’m in I’m going to
make you an offer I really don’t have
any one thing um I try to to be
objective about each company but I guess
I look for something that’s
differentiated I look for something
that’s timely I look for some somebody
who I think can run the company that’s
committed to it I look for someone who
does their homework and I look to see if
I can add value to it is it something
that works for me because if it’s
something you know the frozen-food
business with big shifting you know
because they’re not your thing and what
your your area in next-gen you know I
don’t you know it’s not so much
connections it’s more okay it means I’m
going to have to put in the time to work
at this and because otherwise it’s not
fair to the entrepreneur and do I have
the time and that that
I mean you hear me say it over and over
again time is my biggest constraint it’s
it’s more valuable to me the money from
one thing you can’t get back and look
I’m not here to tell you that times
always been my most valuable asset when
I was sleeping on the floor I plenty of
time right on it and um it’s just you
know as you get older I think more than
anything else and as you have a family
time becomes your most valuable asset
and that that as much as anything else
impacting business that makes the
markets have been going through these
wild gyrations rights don’t seem to have
a clear sense of what direction is up
how do you interpret that as somebody
who’s spent a lot of time put on my you
know manage the portfolio trader hat and
not too much a try but manage the
portfolio it’s great you know um anytime
there’s volatility and any type time
there’s change there’s opportunity now I
say it’s great because I’ve taken a
whole different approach to investing
than most people you know I think buy
holds a caucus I think you know the idea
that you always have to invest your your
cash is not far behind and so I’ve
always been of the attitude that unless
you really have a commitment to
something just keep your money in cash
knowing that at some point in time
there’s going to be a week or two like
we’ve had but how much time I mean a lot
going on in your life how much time you
have to actively manage your portfolio
through these 500-point markets which is
that’s the whole thing I don’t have to
spend much time until just until it hits
the fan right so I mean I’m not hitting
the family’s ex exactly right and that’s
where the opportunity is like I won’t
look at my portfolio or you know I get I
get a repay you know a one-line
one-number statement every day from my
bank and you know that tells me if
anything weird happen and I won’t even
look at it but then when everything
starts getting crazy I call it the world
series of investing you know that’s when
you start digging in and it’s because of
the approach that I take so you know
back in 2006 and 2007 I was writing
blogs saying look the stock markets for
suckers you’re getting put you know when
you sit down at the business table you
always look for the sucker and if you
don’t see it it’s you and you’ve got all
these professional people on the other
side of the trades I mean when I started
trading stocks in the early 90s after I
sold my first company you know you could
understand different elements of the
market better than the professionals so
I can understand you know new technology
from Wellfleet and Synoptics and all
these old technology companies better
than the traders today there’s so much
money in these huge hedge funds and then
they have such professional research and
in-depth research there really aren’t
any advantages for the individual
traders and so my approach has always
been unless I know something specific
put it in cash and so and so what are
you investing in what are the areas that
well what I do you know what I did when
I in 2008-2009 I put everything into MLP
s and M rate some mortgage-backed
securities ones that I thought were the
better companies um and I just piled it
and I also piled into Australian bonds
because I thought the economy was good
next to China was my way playing China
so you make one-way bet this isn’t
portfolio balancing your doll that asset
management you know diversification
that’s for idiots right because you
because you can’t you can’t diversify
enough to know what you’re doing what I
did was I said self self there’s going
to be a lot of volatility so I bought
put took a little bit of money and
bought out of the money calls on this on
the spider calls I bought on the S
standard & poor’s day SP 500 and I did
the same thing on the diamonds which is
the Dow Jones so I bought those long
we’re not when the stock prices cratered
and then when we had the big not today
but the big run-up before I bought a
bunch of puts knowing that even though I
was paying for a lot of volatility that
I thought there would be a lot of swings
in the market and so I thought yours are
spread non-volatile just that number how
long is that going to last in your view
no idea and that’s the whole thing right
people aren’t buying intrinsic value in
companies anymore the whole Warren
Buffett approach works great for Warren
because he can put a three billion
dollars into an investment and take a
whole different approach than John or
Sally doe investor who can’t do yep so
you say buy and hold as a crock of
something right I can’t remember exactly
I NOLA yeah and and you said that
portfolio balancing is a waste of time
so what are John and Sally goes supposed
to depends how much money you have right
so the best way to get a return let’s
just say you have $50,000 in cash
it could be 10 it could be a hundred but
you know let’s use fifty first thing I
would do is pay off all your credit
cards because that’s costing you
eighteen percent that’s what John and
Sally should do first most don’t write
there’s more credit card and student
loan debt relative to personal income
than has ever been in the history of the
United States second thing you do is you
use the transactional value of cash a
lot of people say you know you’re losing
money to inflation when you just have
cash in the bank completely disagree I
can you know I know I’m going buying a
bunch of suit toothpaste for my family I
know toilet paper I know all the
consumables that I have I can take my
cash and go get a better value I can
take my cash and go my store up yeah
yeah why not I mean how much space is
toothpaste take you know but you’re
going to say that but that’s the whole
thing the time it takes just to figure
out your budget
there’s nobody does the time it takes
just to analyze your spending habits you
can get a better return and you’ll end
up with more cash than trying to fight
the the John Paulson’s of the world and
these guys who who have hundreds of
analysts who are working for them why
would you try to do better than them you
can’t win you can’t and now it’s a
hundred times worse because of all the
the program trading but if you have
enough money that you have to put some
of it somewhere to park some of it
somewhere and hope to make a return on
it where do you put it you know what I
do I don’t I don’t think you have to
make a return on it because I’d rather
sleep well at night you know I put it in
cash literally now obviously I’m in a
different position where I don’t have to
live off of the interest pay me one
basis point off a glass right but at the
same time that having that dry powder if
you will available when weeks like today
or the weeks like this week hit and days
like yesterday and today and happy an
opportunity and you see an opportunity
then you’re ready to take it as opposed
to saying I can’t get out what am I
going to do and I’ll tell you the other
part that’s better you’re going to cut
your health costs because you’re going
to sleep a whole lot better at night
sleep well oh I sleep like a baby don’t
use credit cards of all the investments
you’ll ever make pain pain nineteen
percent or you know where eighteen
percent on something is easily as easily
the dumbest um
that’s money that you should be keeping
you can be saving it’s a different world
now because you can be a smart consumer
you know you you have the ability to
price check anything on Amazon or
Walmart calm and you know what you need
to say for put it on layaway with them
now and ended up I had so many credit
cards cut up I actually I was cleaning
up some stuff and some my old credit
report
Sears Amex Visa Kaufman’s he’s old I
mean the situation I was in was like
anybody who would give me a credit card
I would use because I didn’t have any
money so I needed to use it and so I
literally there someone flipping the old
chunks of my old credit card somewhere
so you know stay away from credit if you
have a 401k match you don’t do it for as
much as you can possibly force yourself
to do you’re an idiot if you don’t have
a 401k then there’s so many esoteric
dumbass banking rules right where you
can’t just put $10 or $20 into the bank
because of all the service fees they’re
going to crush you
right and so there’s a variety of new
things and opportunities that are coming
up where if you can get yourself to put
in on $10 a week
$20 a week $100 a month if you’re 21 and
you put in a hundred dollars a month and
you put it into a vanguard index fund
let’s say hopefully you’ll be able to
increase those amounts and so literally
if you can train yourself to save 100
bucks a month and grow it as you earn
more you’re going to be a millionaire by
the time you retire if you don’t trigger
to be in the same boat I was at 27 and
broke or trying to figure it out or you
know others at 50 or 60 will have
nothing the opportunities exist and if
you can invest in just a you know a
stock index fund SPX bond Vanguard I
mentioned because um it’s the lowest
cost do it do it do it do it do it do it
two less beers know these days one less
be one less fireball shot and you can be
rich have those first five fireballs but
those last two that’s
we sell the company and I don’t remember
the exact price of Yahoo stock goes like
$250 and from my perspective this is
this is April 2000 when it closed and
you know I don’t see the stock market
just going up forever I mean literally
the Nasdaq just passed 5,000 which is
where it was back then in 2000 and I’ve
you know like I said I traded stocks I
had started and sold a hedge fund and so
I understood what happens in the market
and gravy trains don’t last forever and
so I’m like look this was crazy I mean
it’s always been a little crazy but it’s
getting even too heated and so I had to
wait six months before I could hedge my
stock meaning by an offset in case it
went down so I literally took every
penny I had 20 some million dollars in
cash and I bought a put again on an
index against the entire market and that
foot was for six months knowing that it
got me to the point where I can hedge
all my Yahoo stock and in case you know
but if the market crashed prior to that
I was as good as I could be the market
didn’t crash I lost every penny but the
minute I was allowed to I hit everything
everything everything right everybody
thought I was an idiot there’s literally
a CNBC interview where he said mark
don’t you feel stupid Yahoo stock is up
another hundred dollars and this by this
time I’d already sold the math and I
remember sitting on the team bus talking
to our Dan coach and one of our coaches
um Joe Harris and he goes look at all
that money he left on this table and
like literally in one day the stocks
were jumping so crazily one day I paid
for the entire Mavericks in the stock
move up one day and they’re like but you
left all this on the table and I’m like
patience patient I did an interview on
CNBC and he goes don’t you feel horrible
that you left you know billion plus
dollars on the
it’s on tape because I said yeah I feel
really bad driving or flying around in
my g5 you know this is horrible because
everybody thought I was an idiot even
people who work for me I told everybody
and Todd listen some people did some
people did because every single person
who had worked for us for more than a
couple months was least on paper a
millionaire and that was 300 plus people
and so we had a lot of lot of smiley
faces around the office I’m like look
and they’ll see you were wrong and
stocks going up and then you know the
bubble burst and I won and you know it’s
unfortunate a lot of people got crushed
but you know I because I had hedged
everything I actually benefited in some
respects and came out further ahead
thank you guys so much for watching I
hope you enjoyed I’d love to know what
did you think of the video what would
your favorite clips what was the lesson
that struck home most for you what are
you going to immediately apply to your
life or your business leave it down in
the comments below I’m super curious to
figure out what you guys thought and I’m
going to join in the discussion I also
want to give a quick shout at the froude
a thank you so much for picking up a cup
of my book your one word and doing that
awesome review on your YouTube channel
I really really really appreciate the
love man today we have a great book your
one-word by Evan Carmichael so thank you
guys again for watching I believe in you
I hope you continue to believe in
yourself and whatever your one word is
much love I’ll see you soon
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