Billionaire investor Mark Cuban, one of the most famous investors on the TV show “Shark Tank,” believes that it is foolish for people to put all their eggs in one basket. That means do not invest all your money but have some savings in the bank.
Here are five top investment tips from the Shark for everyone:
Stock Market Can Be Risky, Keep Some Cash in Savings
In an interview with Young Money, Cuban said, “The idiots that tell you to put your money in the market because eventually it will go up need to tell you that because they are trying to sell you something.” He suggests having a savings account for emergencies.
Put Your Money Wisely In The Market
Cuban recommends going with low-cost mutual funds if you are new in the investment market, according to his conversation with Money. This will allow people to pool their money with other investors and diversify portfolios without spending too much. ”If you can find a way to invest inexpensively in the market, you can start to build your net worth.”
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Don’t Invest In Something You Do Not Understand
In his blog titled, “The Best Investment Advice You Will Ever Get,” Cuban said that people must understand the risks of investing and prepare for the possibility of losing money. If you are doubtful about a high-risk investment, holding onto the cash is not a bad choice.