Mark Cuban doesn’t follow conventional investment advice. The billionaire made his fortune selling Broadcast.com to Yahoo for $5.7 billion in 1999, but when it comes to managing money, his approach tends to go against the grain. Instead of pushing stocks or high-risk ventures, Cuban’s advice for everyday investors is about debt, savings, and buying in bulk.
In a 2010 Forbes interview, he was asked a straightforward question: “You have $100,000—where do you put it?”
His first priority? Clearing debt. “First, I pay off all my credit card debt and evaluate paying off any other debt I have,” Cuban said. With whatever’s left, he keeps it simple. “I put it in the bank.”
Don’t Miss:
-
Are you rich? Here’s what Americans think you need to be considered wealthy.
But his strategy doesn’t stop there. Cuban looks for the best guaranteed return on investment—and it’s not in the stock market.
“I try to create as much transactional value as possible from that cash,” he explained. That means taking a hard look at his budget and finding ways to lock in savings on essentials.
“Saving 30% to 50% buying in bulk—replenishable items from toothpaste to soup, or whatever I use a lot of—is the best guaranteed return on investment you can get anywhere.”
Instead of gambling on stocks or hunting for the next big thing, Cuban believes smart spending is a better investment. He isn’t worried about making quick returns—he’s focused on maximizing what he already has.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
And when all of that is done? Cuban still doesn’t rush to invest.
“Whatever I have left I keep in the bank and let it earn nothing,” he admitted. That might sound counterintuitive, but he has a reason. “Why? Because then it’s available for when I get a good opportunity.”
Cuban knows that every few years, the economy shifts. “Every five years or so there is a bubble bursting or amazing deals available because of a change in the economy.” Holding onto cash, rather than locking it into unpredictable investments, puts him in a position to buy when prices drop.
He’s always been vocal about his skepticism of the stock market, even referring to it as a Ponzi scheme on his blog. Cuban doesn’t believe in chasing short-term market gains. Instead, he bets on cash.
“Anyone who just kept their cash in the bank rather than in stocks over the past five to 10 years could be buying the home of their dreams for half price in most of the country,” he said.
See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
And for Cuban, there’s another perk to holding onto cash. “They sleep great at night. Cash is king—and works far better than Ambien when you want a good night’s sleep every night,” he said.
Cuban’s strategy might sound simple, but it’s built on real financial security.
-
Get rid of debt first. Carrying high-interest credit card balances cancels out any potential investment gains.
-
Look for guaranteed savings. Stocking up on essentials at a discount creates instant ROI.
-
Cash is an investment, too. It might not earn interest, but having money ready means seizing opportunities when the market crashes.
While many financial advisors push high-risk strategies, Cuban sticks to what he knows works. Sometimes, the best investment isn’t about making money—it’s about keeping more of what you already have.
Read Next:
-
The average 401(k) balance soars to a record-breaking high – Here’s how to know if your nest egg is keeping pace.
-
Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Mark Cuban Was Asked How He’d Invest $100K — His Answer? Buy Bulk Toothpaste And Soup For The ‘Best Guaranteed Return On Investment’ originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.