Cuban on Investing: Diversification Is for Idiots

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Entrepreneur Mark Cuban sits down with the Journal’s Alan Murray and weighs in on the fluctuating market. Cuban is investing in volatility. He believes “buy and hold is a crock of $%#!” and diversification is for idiots. Cuban also addresses how patent law stifles creativity, but refuses to address the NBA lockout. This interview originally aired on 8/12/2011.
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Comments

Money Growth Academy says:

Great video! So much info to be pulled from these interviews. We just released a video on our channel analyzing their comments. From our own experience of building a fortune from stock investing we would have to agree with their comments. Diversification is a terrible leading strategy for your investments πŸ’°πŸ‘πŸ½

Muse Russell23 says:

How many times is he going to keep asking him about the nba after hes already said that he cant talk about it?

Maxjohan1983 says:

Great interview

Peter Roth says:

Look at his portfolio of companies. He owns a stake in dozens of them. Also, he is a heavy buyer of the S&P 500, which in itself is a diversified index of 500 companies. That in itself is diversification. So this guy is quite hypocritical and should look in the mirror

Bill Hader says:

survivorship bias in a nutshell

bob olivar says:

Sure Mark put all your eggs in one basket. Commonsense. Diversity for idiots. BS.

Roman Shepelenko says:

this is calling talking about nothing

Luis Canino says:

i think Cuban is full of hot air, is he successful sure but i believe it was luck. He sold his company that never came to fruition for billions just before the cash, he took his payment in stock, then he took his stocks and hedged using puts and sure enough the market crashed. He got very very lucky, I think he is a great business mind in some aspects and in other aspects he isn't any more intelligent than the average guy. Index funds over the long haul yield good returns while paying dividends and with low fees and no commissions etc.. The one common thread through all of these billionares, they always ALWAYS cover their downside. If things are not going their way they have zero patience in pulling their money out, if its going their way they have plenty of patience. Take that note well, Protect your downside, have zero patience with a loser and plenty of patience with a winner.

Simranjeet Singh says:

Stupid views.

Ben B says:

Why do they have him sit in a shadow?

Zo says:

I remember listening to this almost 2 years ago and thinking to myself this is pointless information, I really want to learn how to invest in the stock market and in real estate and I feel like this billionaire is really hiding some valuable information from me because the rich stay rich etc etc.. But I just left the store from grocery shopping and I spent so much money and got so little return. I thought to myself, maybe I should start Extreme Couponing LOL but then it hit me why don't I just stock up on things that are non-perishable toiletries that I know I'm going to need regardless of what's going on. Anytime I have extra money I could buy bar soap, liquid detergent, toilet paper or toothpaste in bulk because it's always going to need to be replenished I feel like now after finding endless amounts of investing videos and reading material pertaining to stocks and real estate although that information was immensely valuable so is this information right here. He's not lying he's telling the truth the smartest things you can do if you don't know anything about investing is to pay off debt with high interest and invest in items that you're going to need regardless of what's going on in your life Mark Cuban you are right I was wrong LOL the wisdom is timeless! I also want to say if you catch deals on non-perishable toiletries you will end up saving money so the extra money you have at the top of your budget can possibly go to investing in stocks or real estate over the long term I would still a win-win

Learnzz says:

Said the guy who brought radio to the internet

The Bowman's Vlog says:

Awsome work

Investing Book Summaries says:

I understand his position, but diversifying can be so much more stable for people who don't have their A-game on all year round.

Greg Wallace says:

Mark Cuban is Idiot! Just because someone has lots of money does not make them smart!

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redrust3 says:

Vanguard S&P 500 index fund. 10% per year average. Compounded. 0.04% annual expense. Tax-free if it's in a Roth IRA. If you work for a living, this matters. Invest the limit, $2000 a year for 40 years. Total investment $80000. At 10% a year, that's $893000 after 40 years. Hedge fund at 6.7%, returns around $400000. Banks pay 0.5%, so you end up with $88000. If you stumble across another Berkshire Hathaway, your $80000 becomes $18 million. S&P 500 is as diversified as you can get.

Treven Wright says:

I spy coke addict symptoms

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