Cuban on Investing: Diversification Is for Idiots

Great advice i just bought 50k worth of toothpaste

"I've got options, MLPS, GNMAs, cash, real estate, a basketball team, stocks, and small businesses--like I said diversification is for idiots." Mark Cuban

"As long as you buy a good company at a reasonable price, you will make money" -Warren Buffett

It's easy to say that nonsense when you're so rich that throwing away $250k in the trash is no big deal.

He should tell Warren Buffett "buy and hold is a crock of shit." Bad investment advice

Cuban certainly has a right to invest however he wants, but he can't call buy and hold a crock of shit nor can he imply that people who diversify are idiots.  There are a lot of people out there who are happy with the returns of the S&P 500, beating inflation, and don't want to take on the additional risk of choosing individual stocks.  Also last time I checked, diversification was a smart thing to do, and not for idiots.  Simply diversifying among U.S. large, mid & small cap, international developed & emerging markets will be beneficial for your portfolio.  Seems like indexing, buy and hold, and diversification are too boring for Cuban, but it doesn't mean they don't work.

Mark Cuban is one of those people that doesn't like other people to get rich.

So who should i believe. Buffet and Graham, or this guy.

This is like talking to a six year-old about how the world works.

He also points out an important point about the patent laws which have completely destroyed innovation, you cant start anything, you get sued from all the sides..   smhh.. what a shitty future we are heading into..

Just because your a billionaire doesn't mean your brilliant.

first time i've heard of someone saying to keep cash rather than invest if nothing is good. that's the principle i take as well.

Famous last words: "I don't think stocks have fallen enough". LOL. Since this interview stocks have gone up 50%!  Sorry. John Doe needs to diversify in bond / stock ETF's. Wealth is built slowly.

Sorry Mark but I think I'll follow Buffet's strategy instead of yours lol...

In case if you guys didn't know. In the world of finance, holding cash means holding short term U.S. Treasury Bills.

he said not to buy apple in this video @ 4:06 , 5 years later it has gone up 100%, well played...

This interview has proved to be of a great help to me... I have put 'each and every statement' of Mr Cuban into action and it has helped me in so many scenarios... This is like a tenth time I watch this interview and I cant get tired of watching it...

Mark Cuban's view actually indicate a big problem on Wall Street, which is not something only I've noticed, many economists and investors have noted the following point. Investors these days are very short sighted, their goal is to make money quick, and mitigate risks through shady dealings.  Gone were the day of long term investments, these days it is all about how fast and how much profit, at any cost.  Between high frequency trading (which have some good and some bad), and the new investment style that only millionaires and billionaires can afford to do, everyone else suffers.  In fact sometimes it feels like investments are more of a rigged game these days. People use to gamble and lose it all on Wall Street sometimes, but when was the last time we seen investors actually losing money?  Very rare these days, which speaks volume about how the financial sector mitigate risk to the point of cronyism.

NOT diversifying is for idiots. Portfolio diversification reduces the variance of returns, and with non-diversified stock portfolios you take the risk that they will fail to include the relatively few stocks that, generate large cumulative returns.

"All that asset management, diversification, that's for idiots right". Perhaps the truest and best quote on investing ever made haha.