Everyone wants to buy stocks before they take off. The trick, according to billionaire investor Mark Cuban, is having enough cash when everyone else suddenly wants to sell.
Cuban is urging investors to resist the temptation to chase soaring stocks, keep some money available and wait for the next market downturn. The opportunity, he believes, comes when prices fall and investors with cash can move while others are scrambling.
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Cuban explained why patience can pay off more than trying to catch every market rally while speaking on “The Diary of a CEO” podcast with host Steven Bartlet on October 26.
“You can invest a little bit for the fun of it, but be patient, have some cash because at some point it’s going to turn,” Cuban said during the interview. “When that happens, that’s when the real magic happens and where the real money is made. The delayed gratification.”
He pointed to the COVID-19 market sell-off as an example of putting that philosophy into action.
“During COVID I just started buying up everything when it hit. And I crushed it,” Cuban said on the podcast.
Why Cuban thinks cash matters before the next market downturn
The familiar saying that cash is king has been repeated by investors for generations, but Cuban has made it a central part of his own investment philosophy.
In a 2008 Blog Maverick post titled “How to Get Rich,” he argued that investors should save money not just for retirement, but for the opportunities that emerge during market turmoil.
“The first step to getting rich is having cash available,” Cuban wrote. He added, “You aren’t saving for retirement. You are saving for the moment you need cash.”
He also criticized the buy-and-hold approach for leaving investors with little money available when stocks fall. His conclusion was blunt: “Cash is king for those wanting to get rich.”
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His mindset echoes the approach taken by Berkshire Hathaway, the conglomerate led for decades by Warren Buffett. Berkshire has maintained enormous cash reserves while waiting for investments that meet its standards.
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In its 2025 annual report, Berkshire addressed criticism of its substantial cash position, explaining that it reflects patience and discipline rather than an abandonment of investing. The company said it would continue pursuing the right opportunities for shareholders.
The strategy isn’t unique to Cuban. It’s a familiar approach among investors who believe the ability to act when prices fall can be just as valuable as owning stocks when prices rise.
Most Americans have their 401(k) money invested in stocks
There’s one major difference between Cuban’s strategy and the financial reality facing millions of American households.
For many workers, retirement savings aren’t sitting in cash waiting for a market correction. They’re invested in mutual funds, index funds and target-date retirement funds that often hold substantial stock positions.
According to Vanguard’s How America Saves report, the average participant-weighted allocation to equities among its defined contribution plan participants was 78% in 2024. At the median, participants held 87% in equities.
That means many retirement savers are exposed to market movements whether they actively follow stocks or not.
Cuban’s comments don’t mean workers should empty their 401(k)s or abandon long-term investing. He didn’t recommend a specific cash allocation or tell investors to sell their retirement holdings.
Instead, his message centers on keeping some financial flexibility rather than feeling compelled to invest every available dollar immediately.
The real advantage comes when other investors panic
Cash doesn’t guarantee a profit, and waiting for a market crash can mean missing years of potential gains if stocks keep climbing.
But Cuban’s COVID example illustrates why having money available can matter when markets suddenly sell off.
The broader lesson is familiar to long-term investors. Opportunities don’t always appear when markets are booming. Sometimes the biggest advantage belongs to those who have the patience and financial flexibility to buy when everyone else is running for the exits.
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