Mark Cuban’s 5 Best Passive Income Ideas

Mark Cuban is well-known for his outspoken views on everything from politics to investing. The self-made billionaire doesn’t hold back when it comes to sharing his two cents on how folks can improve their finances and even get rich.

This borrows a page from billionaire Warren Buffett’s playbook, as the “Oracle of Omaha” has long said, “Diversification is a protection against ignorance. [It] makes very little sense for those who know what they’re doing.”

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Cuban has been known to endorse investment opportunities that either run counter to the majority of analysts or are considered downright aggressive. But Cuban believes that if you know what you’re doing, it greatly diminishes the risk.

While Cuban isn’t known as a passive investor per se, he does pick investments that can grow in the background while he focuses on his businesses, some of which provide extra income in the process.

Here’s a look at the types of things that Cuban invests in himself. And, if you’re looking for some tips to start earning passive income, check this out.

Dividend-Paying Stocks

According to Cuban, dividends put actual cash into investors’ pockets, giving them real-world value by generating passive income right off the bat. With non-dividend stocks, according to Cuban, value is only a vague notion derived from various market metrics.

Dividend-paying stocks are likely the closest investment Cuban has to true “passive income.” In addition to the capital gains that these stocks generate, they also pay dividends every quarter, guaranteeing an income even if the markets are down.

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AI Companies

For the most part, Cuban isn’t a big believer in owning individual stocks. As he’s put it, “I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for them.”

However, he changes his tune when it comes to AI-related companies. This is because Cuban knows the…