Mark Cuban and Jeff Bezos both became billionaires by capitalizing on attractive business opportunities and making smart money moves to preserve their wealth. Both billionaires made their fortunes during the dotcom boom. Cuban sold Broadcast.com for $5.7 billion to Yahoo! in 1999 while Bezos founded Amazon.
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Both of them have periodically shared financial strategies people can use to build wealth and achieve their long-term goals. While the two billionaires don’t agree about everything, there is one money move that they both recommend.
Take Risks
Mark Cuban and Jeff Bezos both recommend that people take some risks. Cuban recommends taking a little bit of risk, while Bezos suggests taking big risks.
It’s normal to take risks if you want to get ahead. Most people don’t want to take big risks because they can end up losing money if things go wrong. If you want to be better than average, you must do things that the average person isn’t willing to do. That includes taking risks.
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Cuban doesn’t seem to be as risky as Bezos. Cuban has a large cash position, while Bezos regularly plowed Amazon’s profits right back into the business for many years. You can start with small risks like Cuban suggests, but you can take big risks like Bezos recommends as you get more comfortable.
It’s important to note that neither billionaire made foolish risks. They didn’t build wealth through slot machines and sports betting. They took calculated risks that involved plenty of research and a belief in themselves. Cuban and Bezos both took many business risks where they were in the driver’s seat. They also made investments in other companies after conducting due diligence instead of buying stocks on a whim.
The Types of Risks You Can Take
Both billionaires regularly put their money to work in the stock market and private investments. You risk losing money with these investments, but these same assets can multiply in value in the long run. It’s less risky to keep all of your money in a savings account, but you are guaranteed to lose purchasing power over time due to inflation.
Investments in assets aren’t the only way to take risks. Cuban and Bezos also launched several startups and expanded into new industries, leading to additional risks. It’s risky to put a good amount of money into a small business that may not make it. However, these risks can result in positive cash flow and give you more freedom if your business or side hustle earns enough to replace your salary.
Bezos also mentioned that you can take risks outside of business. Risks like approaching a potential girlfriend or boyfriend, pursuing a dream and stand-up comedy are risks that aren’t always connected to your career. Taking calculated risks in other areas of your life can help you feel more comfortable with taking risks when warranted.
Know Your Long-Term Goal
It’s important to avoid taking risks just for the sake of taking risks. Keeping a target in mind, such as a net worth goal that opens the door to retirement or the ability to travel more frequently, allows you to take calculated risks without overextending yourself.
If you calculate risks and aren’t afraid to take them, you’ll also be less prone to reckless risks like gambling and speculative investments. Knowing your goals can keep your risk tolerance in check while giving you the flexibility to pursue attractive opportunities.
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This article originally appeared on GOBankingRates.com: Mark Cuban and Jeff Bezos Agree on One Money Move for 2025 — Here’s Why
