Mark Cuban: Why doing nothing is sometimes the best investment strategy

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Mark Cuban sold Broadcast.com to Yahoo for $5.7 billion in 1999. He is now a serial entrepreneur, owner of the Dallas Mavericks, longtime Shark Tank, executive producer and bestselling author. He currently oversees Mark Cuban companies, which encompasses companies from many industries ranging from healthcare to AI. Cuban has over 11 million followers on his social media platforms.

Recognized by GOBankingRates as one of Money’s most influential – and tied for first among the most popular and well-known money experts – here he explains why ‘doing nothing’ is often the best investment strategy and the only factor that can determine whether or not a business is a good investment.

What’s the one money tip you wish everyone would follow?

Don’t follow the excitement, follow your homework. People tend to chase excitement out of the markets, thinking that if everyone else is buying or selling, they should be too. Instead, we all need to do our homework and have a good reason why we’re buying or selling a stock.

And when you don’t know what to do, do nothing. Over the decades, the markets will work in your favor.

Check: The Top 100 Financial Experts of 2022
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What’s the worst investment you’ve ever made?

So many that I can only name one. Typically it’s a private business where I trusted someone I shouldn’t have. The CEO’s integrity is often a more important determinant of an investment’s future performance than his business acumen.

If you’re investing money you can’t afford to lose in a private company, be sure to get independent management credentials.

Jaime Catmull contributed to the reporting of this article.

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Mark Cuban: Why doing nothing is sometimes the best investment strategy

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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