Cuban on Investing: Diversification Is for Idiots
Entrepreneur Mark Cuban sits down with the Journal’s Alan Murray and weighs in on the fluctuating market. Cuban is investing in volatility. He believes "buy and hold is a crock of $%#!" and diversification is for idiots. Cuban also addresses how patent law stifles creativity, but refuses to address the NBA lockout.
Some of his best advice to the average investor is to pay off your credit cards and use your cash to buy large amounts of consumables at a discount that you know you will use. This is actually very good advice. If you eliminate your expensive debt that will save you 15-25%. If you spend 5-10% less on products you will definitely use by buying in bulk, that is a direct savings.