Mark Cuban says he keeps a large portion of his portfolio in cash — here’s why

If you regularly follow popular blogs, podcasts, and videos Personal finance Influencers, you’ll hear a lot of advice that they all seem to agree on. One area of ​​overlap is that you must invest a certain portion of your income. While this is solid financial advice, some finance experts, like entrepreneur Mark Cuban, believe a significant portion of your investment portfolio should be cash.

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Here are some of them Reasons to keep cash on hand.

When it comes to investing, few can match his achievements Berkshire Hathaway CEO Warren Buffett. Over the years, Buffett has made a name for himself as a top investor who preaches patience and consistency over the long term. However, Buffett doesn’t just invest; He also carries a lot of cash.

Toward the end of 2024, Berkshire Hathaway’s cash reserves reached $325 billion, doubling the amount of cash it had at the end of 2023. Having cash on hand gives Buffett the upper hand in terms of flexibility. When a stock price falls and is determined to be undervalued, other companies may not have the liquidity to buy it immediately. However, Buffett’s cash reserve allows him to seize the opportunity and maximize his profits.

Not everyone runs a multinational company like Berkshire Hathaway, but holding cash can still give you the opportunity to take advantage of opportunities that may arise later. Whether it’s an undervalued stock, real estate, or a rare watch, if you have enough cash on hand, you don’t need to rush to sell any other investments to get it.

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Buying low and selling high is perhaps the most common investment advice. but, Market volatility is not always great. Cuban, a successful entrepreneur, investor, and television personality, always keeps a large portion of his portfolio in cash because, whether it’s political unpredictability, a world event, or a new innovation, he’s not a fan of losing money and doesn’t want to take big risks.

On January 27, 2025, Nvidia stock fell 17%, reducing its market value by about $600 billion – the largest decline for a US company in history. While the company rebounded quickly, Cuban did not feel good about the purchase because he believed there was still too much uncertainty. Other market-shaking events, such as President Donald Trump’s tariff announcements, have also kept Cubans from investing. By keeping his money in cash, he is not affected by market fluctuations and can remain confident about preserving his wealth.