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So how can you follow suit and invest like Cuban?
Businesses With Huge Capital Needs
Cuban tries to avoid businesses with huge startup capital requirements.
Businesses typically fail because they run out of money.
That prudence occasionally means Cuban misses out on a big winner.
In aLinkedIn commentreferenced by The Motley Fool, Cuban said he would make the same decision again.
It means you make better decisions with the information you have at the time.
Businesses With Large Debts
Despite taking risks in some areas of his investments, Cuban remains wary of debt.
I learned very quickly that debt was not my friend.
By SPX, Cuban means an index fund that simply mirrors the S&P 500.
Investments You Dont Understand
If you dont understand an investment, youre gambling, not investing.
Compound interest is your enemy.
High-Risk Investments
Mark Cuban doesnt shy away from risk.
But like many wealthy investors, he takes calculated risks.
Its a flyer, but Id limit it to 10% (of your portfolio).
Learn to manage risk, not avoid it entirely or leap into it without looking.
Final Thoughts
Most highly successful people never stop learning, and Mark Cuban is no exception.
Theyre endlessly curious about the world around them and their place within it.
If you want to achieve financial success, double down on your personal growth and ongoing education.
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