Mark Cuban, the serial entrepreneur and investor best known for his role on “Shark Tank,” had a surprisingly simple goal when he became a millionaire: avoid spending all his money at once.
What Happened: After selling his software company, MicroSolutions, for $6 million in 1990 and pocketing about $2 million after taxes, Cuban adopted a conservative investment approach to preserve his newfound wealth.
"I want you to invest for me like a 60-year-old. I don't want you to invest like I'm young, because I want to live off this for a long time," Cuban recalled telling his broker at the time and shared this in a recent interview.
This strategy, along with his frugal lifestyle, allowed him to safeguard his wealth while still enjoying occasional splurges.
Cuban's modest upbringing as the son of an automobile upholsterer near Pittsburgh shaped his cautious approach to money.
Even after becoming a millionaire, he lived below his means, buying "the worst house in the best neighborhood" and steering clear of flashy cars.
"By the time I sold MicroSolutions, I had just bought the worst house in the best neighborhood, but I wasn't big into that. I wasn't big into cars. I wanted to live like a student and just have fun," Cuban said.
However, one notable indulgence was a $125,000 lifetime pass with American Airlines, which he used to "party like a rock star" across cities with his friends.
His financial perspective shifted dramatically in 1999 when he sold his second company, Broadcast.com, for $5.7 billion. The windfall gave Cuban the freedom to take more significant risks, a mindset he has carried into his investing career.
Cuban has said that smart risks are essential to building wealth, reflecting his evolution from a cautious millionaire to a bold billionaire.
Today, Cuban focuses on his family and running Cost Plus Drugs, his pharmaceutical startup aimed at lowering prescription drug costs. While his days of lavish partying are behind him, he remains dedicated to making a positive impact. "I think less about making money and more about direction and…benefit[ing] as many Americans as I can," Cuban said during the interview.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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