Mark Cuban, the billionaire investor and owner of the Dallas Mavericks, recently shared his investment advice for NBA players and other millionaire athletes on the Club Shay Shay podcast. He warned against investing in certain industries and provided strategies for growing wealth. Cuban advised against investing in rap labels, restaurants, clothing lines, and liquor companies.
He said these industries have high failure rates and unreliable returns due to low barriers to entry and oversaturation. “Athletes often invest in these businesses out of love or loyalty, but that can lead to poor decisions,” he said. Instead, Cuban encourages athletes to focus on low-risk, high-reward investments that can generate steady, passive income over time.
He emphasized the importance of living modestly, especially for those who are not at the peak of their earnings. “If I’m just a two-way player, I’m living like a student because you don’t know how long it’s going to last.
Investment guidance for millionaire athletes
It’s hard when you first get money to understand what it is, how much you have,” he remarked. One of Cuban’s recommended strategies is investing in Dividend Kings, which are stocks from companies with a 50+ year history of increasing dividend payouts. “You hear about people losing it all, so I tell guys all the time, ‘Save your money.’ You know, one broken ankle and it’s over,” he explained.
For those not interested in the stock market, Cuban suggests exploring fractional real estate investments. This model allows investors to own shares of high-value properties without the responsibilities of full ownership. Cuban advises high-earning individuals to seek professional financial guidance rather than relying on friends.
“If he’s making 40-60 million, he’s hiring somebody that knows what they’re doing, but it ain’t going to be one of my friends. Your friend wants to be your friend. My money guy needs to make me money,” he emphasized.