Mark Cuban calls these investments 'death' for ultra-rich Americans. Are you making the same mistakes?
Vishesh RaisinghaniSat, August 15, 2026 at 3:35 PM GMT+3 7 min read
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Celebrities and athletes can make millions during their careers, but billionaire investor Mark Cuban has warned that what they do with that money can determine whether their wealth lasts.
During an appearance on Shannon Sharpe's Club Shay Shay podcast, Cuban offered some blunt advice for those who suddenly come into wealth: "Don't invest in the restaurant, don't invest in the clothing label, don't invest in the liquor company ... or music," he said. "That is the death!" (1).
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Here's why Cuban, a seasoned entrepreneur, avoids these flashy ventures with "no barriers to entry."
Why Cuban looks for barriers to entry
Cuban's advice to people with lots of money to invest is to hire somebody to manage it. "It cannot be your friend," he added. "It's got to be somebody who's done it for big time people."
He warns against investing in industries like clothing, restaurants, or liquor, calling them "too easy to enter…those businesses are hard because there's no barriers to entry."
Barriers to entry, as defined by the Corporate Finance Institute, are factors like regulations, licensing, technology, or patents that restrict competition and enhance profitability (2).
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In contrast to high-barrier opportunities, Cuban's point is that launching a clothing line or restaurant requires minimal investment or expertise, making it easy for anyone to enter. This flood of competition reduces pricing power and profitability. Indeed reports the average profit margin for a full-service restaurant is just 3% to 5% (3).
Investors and entrepreneurs should keep an eye on the barriers to entry and whether they are backing a product that is truly exceptional.
Look beyond the flashy investments
Businesses don't have to be glamorous to make money. Few may dream of starting waste disposal firms or pest control services, but unglamorous industries can be lucrative for those willing to forgo bragging rights.
Legendary investor Warren Buffett has built a fortune by betting on "boring" businesses. Over the decades, Berkshire Hathaway accumulated businesses spanning insurance, railroads, utilities, energy, manufacturing and retail, and that approach is still visible at Berkshire today. Its portfolio includes longtime holdings such as Coca-Cola, American Express and Chevron (4).
For guidance on navigating "boring" but profitable industries, you could turn to Moby, an investment research platform led by former hedge fund analysts.
Moby provides expert stock reports backed by hundreds of hours of research, breaking complex market data into simple insights. With stock picks outperforming the S&P 500 by nearly 12% on average, Moby equips investors with a rare edge to uncover opportunities in undervalued sectors.
For example, when you consider the low competition and steady demand in industries like logistics, utilities, energy, or enterprise software, Moby can help you tap into these opportunities where profitability often thrives.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
Tap into real estate without becoming a landlord
While "boring" businesses may thrive in overlooked niches, real estate offers an alternative way to invest in steady, income-generating assets.
Real estate offers a stable option for those seeking long-term income generation and inflation-resistant growth. Whether through residential properties, commercial developments, or specialty niches, real estate has proven its resilience during volatile economic periods.
You can tap into this market by investing in shares or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100.
For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.
Rental properties can bring in income month after month, with the added upside of potentially gaining value over time. The catch is that owning one yourself means taking on the costs and work of being a landlord.
That's where mogul comes in. This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform's viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Gold's flashiness comes with a practical purpose
Cuban may warn against putting money into flashy investments, and gold may certainly look the part, but for centuries, gold has served as a trusted store of value, especially during economic uncertainty. As a hedge against inflation and a stabilizer for fluctuating markets, gold remains a cornerstone of diversified portfolios.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. But keep in mind that gold is often best deployed as just one part of an otherwise well-diversified portfolio — not necessarily as a wholesale replacement.
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Club Shay Shay (); Corporate Finance Institute (); Indeed (); Berkshire Hathaway ()
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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