How Mark Cuban Partied Hard, Got Rich & Stayed Rich | Mark Cuban on Capital University

 Check out Capital University Podcast Episode Page. Subscribe on Apple Podcasts, and watch the Episode on YouTube.

Key Takeaways

  • When investing in stocks, be careful of getting overconfident: 
    • “Everyone’s a genius in a bull market” Mark Cuban
  • Good investors can make money in good and bad times:
    • “The great stock pickers aren’t only the ones who make money when things are going up, they make money all the time because they know what they’re doing” – Mark Cuban
  • It’s important to have a direct relationship with your audience so you can go to your audience instead of your audience always having to go to you
    • Mark recommends having an email list, text list, or community, where you can directly contact fans
  • How Mark would invest $15 million:
    • He’d put $1-2 million in an emergency fund
    • Put most of the capital in low-index mutual funds and let it sit there for 40 years
    • Put 25% of the capital for angel investments
      • When making angel investments, look for companies that will help or leverage your existing company or brand 
  • Angel investing 101:
    • Make sure it doesn’t suck time or energy from your core source of income
    • Know why the company wants you to invest in them and what they expect from you
    • Know the liquidity options

Intro

Mark Cuban’s Background

  • Mark has been an entrepreneur his whole life: 
    • As a kid he sold baseball cards and garbage bags
      • He opened up a bar before he was 21 
        • He also worked as a software salesman
          • He taught himself how to program and started his own company called Micro Solutions. He sold it for $6 million.
            • Mark personally made about $2 million and used some of the money to buy a lifetime pass on American Airlines and partied like a rockstar.
  • After that,  Mark started a hedge fund that was bought 9 months later
    • He then started the first streaming company called Audionet. The company then moved into video streaming and changed the name to Broadcast.com. The company later went public.
      • The company was then sold to Yahoo for $5.7 billion

Investing In Stocks

  • When investing in stocks, be careful of getting overconfident: 
    • “Everyone’s a genius in a bull market” Mark Cuban
  • Good investors can make money in good and bad times:
    • “The great stock pickers aren’t only the ones who make money when things are going up, they make money all the time because they know what they’re doing” – Mark Cuban
  • You have to research the companies you’re investing so you know if it’s a good investment or not

Thoughts on Social Media

  • TikTok gives anyone the ability to blow up and become a viral sensation
    • Charli D’ Amelio gained 60 million TikTok followers in less than a year
  • Most likely your audience on each social media platform is different and it’s important to know the demographics of the people who follow you on each platform
  • It’s important to have a direct relationship with your audience so you can go to your audience instead of your audience always having to go to you
    • Mark recommends having an email list, text list, or community, where you can directly contact fans

How Would Mark Invest $15 Million?

  • He’d put $1-2 million in an emergency fund
  • Put most of the capital in low-index mutual funds and let it sit there for 40 years
  • Put 25% of the capital for angel investments
    • When making angel investments, look for companies that will help or leverage your existing company or brand

Angel Investing 101

  • Make sure it doesn’t suck time or energy from your core source of income
  • Know why the company wants you to invest in them and what they expect from you
  • Know the liquidity options

Additional Notes

  • Bryce recently started his own energy drink company called Ani
  • If you’re going to angel invest, you need to have an edge or expert knowledge in a specific industry
Capital University : , , , ,
Notes By Alex Wiec

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