What We Can Learn From Mark Cuban
What Athletes Can Learn From Mark Cuban On Investing
Mark Cuban is the outspoken owner of the Dallas Mavericks in the NBA. He is also a very successful businessman and investor. He is one of the main shark investors for the show SHARK TANK, the show where entrepreneurs seek funding for their companies. Rarely on the show do you see Mark Cuban invest in companies. He’s almost always one of the first Sharks to say no or pass on a deal.
Why is that?
Considering Mark Cuban is worth over 3 billion dollars and he’s a very active investor, why does he say no so much? We could attribute it to his character on the show or we can attribute it to his investment criteria and his ability to say no as to why he’s so successful business wise.
If you take into account the amount of investments he sees on a yearly basis on top of the deals through Shark Tank, it’s impossible to expect every deal to be a hit. In fact, in the VC space for you to be considered a good investor you have to be successful with 1 out of every 10 investments. We aren’t saying that to entice you to start investing in more companies but for you to take Mark Cuban’s approach and be more strategic and cautious with where you spend your money.
Mark Cuban is able to be a smart investor for a number of reasons but after watching Shark Tank for as long as we have we can factor it to a few reasons:
How To Say No
Being able to say no is the most important thing you will have to come to grips with as an investor. Not every deal is meant for you, not every deal will make money. Simply by having the power to say no can take you a long way in making returns. Specifically as an athlete, you will not only get access to “can’t miss” deals but outrageous companies started by friends and family, being able to say no will help you in the long run for you to make the investments in the right projects.
Have A Criteria
If you watch Shark Tank, you will start picking up that Mark Cuban doesn’t invest in start ups that he can’t understand. As we know, Mark Cuban is a pretty smart guy if we simply check his track record. For him to be humble enough, to know that he doesn’t have the expertise in certain areas and that’s why he doesn’t invest in certain companies allows him to focus on companies he feels he has the knowledge in to help them succeed. This is vital for athletes to take note of because in most cases with investing it’s not only about how much capital you can provide but how you can help in other aspects. You have to have an area of expertise.