3 Things Mark Cuban Is Doing With His Portfolio Amid Trump’s Tariffs
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Andrew Lisa
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Levi Leidy
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Scott Galloway is a professor, entrepreneur and bestselling author whose podcast, the Prof G Pod, covers a range of financial and business topics for its 446,000 subscribers. On a recent episode on YouTube, Galloway and his co-host, political strategist and cable news personality Jessica Tarlov, interviewed Mark Cuban. The celebrity billionaire revealed how he has adjusted his portfolio and spending to withstand the ongoing market turmoil that has defined the era of President Donald Trump’s on-again, off-again tariff policies.
Although they may not have billions of their own, ordinary investors might find that their holdings could benefit from Cuban’s tactics.
Accept That the Chaos Is Here To Stay and Adapt To Survive It
Cuban opened by saying that his initial response to Trump’s “Liberation Day” announcement of steep tariffs on most imports from nearly all of America’s trade partners was “shock and awe.”
He told Galloway that he initially expected the market upheaval to be short-lived. However, Cuban soon accepted that uncertainty and volatility were to be the new normal for the foreseeable future, thanks to what he sees as Trump’s mixed messaging and inconsistent, haphazard approach to trade policy.
“I just think everything is so convoluted that it’s hard to come to any conclusions right now other than it’s really messy,” Cuban said.
Spend Extra in the Short Term To Save More in the Long Run
For Cuban, most households should start by making strategic bulk purchases of items that won’t spoil, that they’ll need indefinitely and that they have room to store. He mentioned products like toothpaste, toilet paper and soap.
He cites a powerful competitive advantage that is unique to this moment. Because Trump paused the tariffs for 90 days exactly, today’s consumers know precisely when prices are likely to rise well in advance. That gives them a specific and predictable window to plan large purchases that will likely cost substantially more this summer.
“It’s just smart economics,” Cuban said. “If you can save 20%, 30%, 40% to avoid tariffs and get a discount at Costco, you’re making money.”
In Volatile Markets and Uncertain Times, Turn To Pros Who Know More Than You
As for investing in a nerve-wracking post-tariff stock market, Cuban revealed that he mitigated increasingly worrisome volatility by “treading water,” a term he used to describe his tactic of using calls and puts simultaneously as a hedge. It was part of an advanced options trading strategy that even many sophisticated investors would probably struggle to execute successfully over time. As for garden-variety or novice investors, the strategy’s inherent complexity and risk would almost certainly overwhelm most of them much more quickly — but Cuban never urged the masses to attempt his approach.
However, he did reveal a strategy that is almost universally applicable to investors of all skill levels and budgets — concede that you might need help from someone who is better at this than you, instead of following your ego to financial ruin. Cuban sold the stocks he had previously picked on his own and used the cash to buy shares of Warren Buffett’s Berkshire Hathaway investment firm.
Buffett Probably Won’t Take Your Call — but Your Local Investment Advisor Will
The move revealed an admirable dose of humility and self-awareness that helped Cuban accept that one of history’s most consistently successful investors, who had decades more experience, was probably better suited to ride out the storm than he ever could be.
“If I had a choice between having me invest my cash or Warren Buffett invest my cash, I’ll have Warren Buffett invest my cash,” Cuban said.
It wasn’t a plea to sell your holdings and go long on Berkshire. It was a reminder that uncertain times are when it’s most important to recognize your own limitations. If your money is in play and you haven’t yet sat down with a professional investment advisor with the skills and experience needed to meet the challenge, there’s no better time than now.
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Sources
- The Prof G Pod — Scott Galloway, “Mark Cuban – Do We Need an Elon of the Left? | Raging Moderates.”
