Mark Cuban: Why Doing Nothing Is Sometimes the Best Investing Strategy

Mandatory Credit: Photo by ETIENNE LAURENT/EPA-EFE/Shutterstock (10320795dj)US businessman Mark Cuban poses for the photographers upon his arrival for the 2019 NBA Awards at Barker Hangar in Santa Monica, California, USA, 24 June 2019 (issued 25 June 2019).

Mark Cuban sold to Yahoo for $5.7 billion in 1999. He is now a serial entrepreneur, owner of the Dallas Mavericks, long-time “Shark Tank” Shark, executive producer and bestselling author. He currently oversees Mark Cuban Companies, which encompasses companies across numerous industries ranging from healthcare to AI. Cuban boasts over 11 million followers across his social media platforms.

Recognized by GOBankingRates as one of Money’s Most Influential — and tied for the No. 1 spot among the most popular and well-known money experts — here, he shares why “do nothing” is often the best investment strategy and the one factor that can determine whether or not a company is a good investment.

What’s the one piece of money advice you wish every person would follow?

Don’t follow excitement, follow your homework. People tend to chase excitement in markets, thinking 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 are buying or selling a stock.

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

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What’s the worst investment you’ve ever made?

So many I can’t name one. Typically, it’s a private company where I trusted someone I should not have. Integrity of the CEO often is a greater determinant of an investment’s future performance than their business acumen.

If you are investing money you can’t afford to lose in a private company, make sure you get independent references on management.

Jaime Catmull contributed to the reporting for this article.

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About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert. 
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