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Billionaire entrepreneur Mark Cuban has never been one to shy away from sharing lessons learned in his early years, or from giving people today advice on how to overcome obstacles and gain wealth.
In a 2017 interview, Cuban suggested investing a small portion of the money in it Bitcoin (CRYPTO:BTC). Here’s how that investment would have turned out.
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What happened: Cuban was a hustler from an early age, selling trash bags door to door before founding his first companies, which were later acquired and helped him buy the Dallas Mavericks.
In an interview with Vanity Fair, Cuban shared his advice on “getting rich,” with nine tips to save money, get better returns on investments and build wealth.
“Rich is all relative,” Cuban said in the Oct. 18, 2017 video.
Along with advice such as living like a student, not using credit cards, saving six months of income and investing savings in a mutual fund, Cuban said people could invest 10% in cryptocurrency.
“If you’re a real adventurer and want to throw the Hail Mary, maybe you can take 10% and put it into Bitcoin or Ethereum.”
Cuban cautioned that investors who go this route should treat the investment like collecting art, baseball cards and shoes as items that only have “value what someone else will pay for them.”
“If you do that, you have to act as if you’ve already lost your money.”
Although Cuban said at the time that the investment advice was “a flyer,” anyone following the thinking that day probably knows they are sitting on a very valuable investment.
Someone who invested $1,000 in Bitcoin at the high price of $5,603.82 on October 18, 2017 could have bought 0.1784 BTC. Today, that investment would be worth $11,838.45, an increase of 1,083.8% from the time of Cuban’s comments.
The same $1,000 invested Ethereum (CRYPTO: ETH), the other cryptocurrency mentioned by Cuban, could have bought 3.1815 ETH based on a price of $314.32 at the time. The $1,000 investment would be worth $8,232.67 today, an increase of 723.3%.
An investor who split the $1,000 equally between the two cryptocurrencies could have purchased 0.0892 BTC and 1.5907 ETH. The investments would be worth $5,919.22 and $4,116.21 respectively, for a total of $10,035.43, an increase of 903.5%.
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Why it’s important: While Cuban’s comments weren’t complete investment advice and just an idea of how people could get rich by changing their spending and investing habits, the results are worth monitoring.
Cuban suggested saving money and putting it into a mutual fund that could track the S&P 500.
The same $1,000 invested in the SPDR S&P 500 ETF Trust, who tracks the S&P 500 could have bought 3.91 SPY shares. The investment would be worth $2,276.32 today, an increase of 127.6% over the same period.
Cryptocurrency investing when Cuban made the comments outperformed the broader U.S. stock market.
The commentary suggests that putting a small amount of money into a cryptocurrency investment portfolio could deliver strong returns over time, despite the sector’s occasional volatility.
Cuban mentioned in an Ask Me Anything on X earlier this year that he holds positions in several cryptocurrencies, including Bitcoin and Ethereum.
The billionaire entrepreneur, who publicly supports Kamala Harris in the 2024 election, he was one of several individuals the vice president sought advice on the cryptocurrency sector.
Interest rates are falling, but these returns aren’t going anywhere
Lower interest rates mean that some investments won’t return what they have in recent months, but you don’t have to lose those gains. Certain private market real estate investments offer private investors the opportunity to take advantage of these high-yield opportunities.
Arrivald Homes, the Jeff Bezos-backed investment platform, offers a Private Credit Fund. This fund provides access to a pool of short-term loans, backed by residential real estate, with a target of 7% to 9% net annual return paid out to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Wondering if your investments could earn you a $5,000,000 nest egg? Talk to a financial advisor today. SmartAsset’s free tool matches you with up to three vetted financial advisors serving your region, and you can interview your advisors for free to decide which one is right for you.
This article If You Invested $1,000 In Bitcoin When Mark Cuban Said ‘Throw the Hail Mary,’ Here’s How Much You’d Have Now originally appeared on Benzinga.com
