Mark Cuban’s Top Money Mistakes Even the Middle-Class Can Learn From
Written by
Paige Cerulli
Edited by
Zuri Anderson
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Even sharks make mistakes. Mark Cuban, American businessman and former investor and shark on ABC’s “Shark Tank,” admitted that he made some expensive financial mistakes when he bought the majority ownership in the Dallas Mavericks, a professional basketball team.
Cuban, who sold a large share of his ownership of the team in 2023, reflected on those mistakes in an interview with Sports Illustrated. While his mistakes center around the purchase of a sports team, something your average person will never experience, those mistakes contain important lessons that the middle-class can learn from.
Letting Ego Guide Financial Decisions
Cuban let his ego guide his decisions, prompting him to buy three number one picks in the 2000 draft, which he described as being the “worst draft in the history of the NBA.” Cuban credited the decision to being young and competitive.
“I just wanted to come in and have an impact,” he explained. “That ego, that competitiveness, can work against you.”
When it comes to making financial decisions, think carefully about what’s driving those decisions. Confidence can be helpful in finance, but it’s equally important to be well-informed. If you’re exploring a new area of finance, such as buying your first home, take your time, do your research and avoid making an eco-driven decision.
Being Unwilling To Change
Since Cuban had grown his business to a point that allowed him to purchase the Mavericks, he felt he would continue with that process that had worked for him. It turned out to be an expensive mistake.
“That’s what got me in trouble with the NBA a lot when I first came in,” he explained. “I’m like, ‘I’m not gonna change for them. This is what works.’ But that ego… also makes you over-confident to a certain extent.”
Sometimes financial success requires being willing to pivot and change. The methods that have worked well for you in the past won’t necessarily be as successful in the future, especially if you’re moving into a new financial area or venture, like Cuban did.
Focus on being open to advice, especially from trusted experts with a deep understanding of the field. For example, if you want to start a new business, advice and guidance from experienced businessowners can be invaluable. By staying open to new approaches, you can maximize your chances of financial success.
Going All in on a Risky Situation
In the 2000 NBA draft, Cuban went all in on a risk. It didn’t pay off. The Dallas Mavericks took Etan Thomas, Courtney Alexander and Donnell Harvey, but Thomas was injured and missed his whole rookie season before being traded to the Washington Wizards.
Going all in on a risky financial situation is rarely a good idea, as Cuban’s luck reflects. Whether you’re buying a business or investing, spreading your money out across multiple ventures helps reduce the risk you’re assuming.
If Cuban had taken a slightly more conservative approach to the draft, the results might have been more positive. Instead, his risk-taking decisions didn’t end well, and he was left to face the poor results. Keep that in mind the next time you face potential financial risk and consider how you can carefully approach the decision and minimize your risk.
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