Mark Cuban is known for his vocal ideas and advice on the subjects that range from politics to investment. Self-made billionaires do not catch back while sharing their two cents how people can improve their finances and even rich.
It borrows a page from the playbook of billionaire Warren Buffett, as “Omaha of Omaha” has long said, “Diversion is a protection against ignorance. [It] Very little is understandable for those who know what they are doing. ,
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Cuba is known to support investment opportunities that either run counters for an analysts’ majority or are considered lowly aggressive. But Cuba believes that if you know what you are doing, it reduces the risk greatly.
While Cuba is not known as inactive investor per passive, he chooses investments that can grow in the background while he focuses on his businesses, some of which provide additional income in the process.
Here is a look at things that Cuba invests in itself. And, if you are looking for some tips to earn passive income, then see it.
Dividend-paying stock
According to Cuba, dividends put real cash in investors’ pockets, making them the real world value by generating passive income. With non-dividend shares, according to Cuba, the value is only a vague perception that is derived from different market matrix.
There is a possibility of dividend-paying shares that the closest investment Cuban is to actually make “passive income”. In addition to the capital gains of these stocks, they pay quarterly dividends, guarantee an income, even if the market is below.
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AI companies
For most parts, Cuba is not a major believer in owning individual shares. As he said, “I believe that non-profit stock is not much more than baseball cards. They are worth which you can convince someone to pay for them.”
However, when he talks about companies related to AI, he changes his tune. The Cuba knows the region well and believes in the future of AI, suggests that each company will need it to grow or survive. Thus, when it comes to a large part of their selection process when it comes to individual shares, how capable they are in the field of AI.
AI shares are not known to generate current income, but if they explode in value, they can turn into a generous source of income when needed. Meanwhile, you can just invest them passively in your portfolio, waiting for their performance.
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cryptocurrency
Cryptocurrency is not a true source of “passive income”, but a swing-for-fence that will either flame out or pay heavy dividends. As Cuba suggests, Cryptocurrency is valued as it is based in part on smart contracts.
This built -in technology, Cuba believes, eventually creates applications that have universal utility. In turn, cryptocurrency which are based on functional smart contracts should have an important value. Unlike many individual investors, the billionaire is not just blindly speculating – he understands the underlying technology and sees its value.
It is said, Cuba warns investors that they should only invest money that they are comfortable to lose in Crypto. Cuba wants to say that you should only invest in cryptos like bitcoin and atherium “if you are a true courageous and you really want to throw Mary of hail.”
S&P 500 Index
Although Cuba and Buffett are strongly disagree with Buffetto, bitcoin with buffett is called “rat poison square”, they are definitely on the same page about low -cost S&P500 index funds for most investors.
However, the index has a total return of about 10% annually. With long -term, frequent investment, the index can provide an important source of passive funds.
private companies
As one of the primary investors on the “shark tank”, Cuba regularly invests in small, private companies. This is another form of high-risk, high-inam investment and to be frank, Cuba has access to more opportunities than an average investor.
However, Cuba usually has to keep more blood, sweat and tears if you can invest in a private company through a crowdfunding platform or mutual funds.
In other words, your investment in a private company can be really passive – and it can also generate income.
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This article originally appeared on gobankingrates.com: 5 best passive income ideas of Mark Cuban
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