'I Don't Want You To Invest Like I'm Young': Mark Cuban Reveals How He Protected His Wealth After Selling His First Company

Mark Cuban, entrepreneur and billionaire investor, has lived through the financial ups and downs many only read about. His journey from living with five roommates to becoming a self-made millionaire – and eventually a billionaire – is full of lessons. Cuban recently shared how he protected his wealth after selling his first company, MicroSolutions, in an interview with Jules Terpak on the Fishbowl podcast.

Early Lessons in Frugality

Cuban didn't grow up wealthy. Born to a working-class family near Pittsburgh, his father was an automobile upholsterer. By his mid-20s, Cuban was broke, living with five roommates in a cramped apartment. For $750 a month, six young men shared a "dump," as Cuban described it. But he didn't mind the humble living conditions. "It was like a fraternity house in its own way," he told Terpak.

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Cuban’s financial situation changed drastically after selling MicroSolutions in 1990 for $6 million – netting about $2 million after taxes. However, his approach to money didn't. Guided by advice from his father and a book called How to Retire by the Age of 35, Cuban made a key decision: He would live frugally and invest conservatively.

"So I made $2 million and I literally remember calling up my broker … I said, I want you to invest for me like a 60-year-old," Cuban recalled. "You know, I’m young. Because I want to live off this for a long time."

Living Like a Student

Cuban didn't immediately embrace the flashy lifestyle many associate with newfound wealth. He lived modestly, buying "the worst house in the best neighborhood" and avoiding expensive cars. His frugality extended to everyday living – no yachts, butlers or house cleaners.

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But there were exceptions. To celebrate his financial milestone, Cuban bought a $125,000 lifetime pass with American Airlines. The pass allowed him to travel anywhere, anytime. "I bought this lifetime pass in American Airlines so I could go to any city, anywhere, party like a rock star," he said, recounting his desire to experience life to the fullest without overspending on material possessions.

Building Wealth Through Smarter Investments

Cuban's conservative investing strategy paid off. By the time he cofounded Audionet (later Broadcast.com) in 1995, he had enough financial security to take on riskier ventures. When Broadcast.com was sold to Yahoo for $5.7 billion in 1999, Cuban became a billionaire.

This newfound wealth gave him the freedom to shift his strategy. While he began taking calculated risks as an investor – famously on ABC's Shark Tank – he never abandoned his core principle of living below his means.

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Lessons for Young Investors

Cuban's early approach to wealth preservation aligns with expert advice for those just starting their financial journeys. While young investors are often encouraged to take calculated risks, Cuban's story highlights the importance of balancing ambition with discipline.

Nasdaq CEO Adena Friedman spoke at the Fortune Global Forum 2024 and advised young investors to experiment with small amounts of money to learn about the stock market before diving into larger risks. Cuban echoes this sentiment through his actions, proving that thoughtful, patient investing can provide a strong foundation for future opportunities.

From Student Living to Making an Impact

Today, Cuban's focus has shifted. No longer concerned with personal wealth accumulation, he dedicates his time to ventures like his pharmaceutical startup, Cost Plus Drugs, which aims to make prescription medications more affordable. "I think less about making money and more about direction and f—ing things up to benefit as many Americans as I can," he told CNBC.

Cuban's journey from frugal beginnings to financial success is a testament to the power of discipline, thoughtful investing and living within one's means – lessons that resonate across generations.

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