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Dallas Mavericks owner Mark Cuban has some advice if you’re planning to invest on Robinhood

Planning to invest on Robinhood? Here’s what Dallas Mavericks owner Mark Cuban thinks

Dallas Mavericks owner Mark Cuban during an NBA basketball game.
Dallas Mavericks owner Mark Cuban during an NBA basketball game in Boston.
Charles Krupa, Associated Press

Dallas Mavericks owner Mark Cuban has some advice if you’re planning to invest in cryptocurrency or stocks on apps — make sure you know why you’re investing.

Mark Cuban on investing in Dogecoin, on Robinhood

Cuban recently spoke with The Daily Beast on a number of topics, including the Dallas Mavericks, Luka Doncic and “Shark Tank.” He also talked about investing in cryptocurrency and stocks using apps like Robinhood.

  • Cuban said you have to know why you’re investing in meme cryptocurrencies and stocks.
  • “It’s easy to get lost in the hype of Dogecoin, GameStop or AMC, and I’m not saying don’t invest in those companies because they can be good investments, but you’ve got to know why you’re investing,” he told The Daily Beast. “Are you investing because of some video you saw on TikTok, or a video you saw on YouTube, or a friend told you? Those aren’t good enough reasons. Part of the fun in investing is doing the homework, finding out companies and seeing if it’s something you agree with — and believe in.”

More advice from Cuban

Cuban told The Daily Beast you should pay off your credit cards because you’re getting ripped off from paying interest.

  • He told The Daily Beast you should have a rainy-day fund in case anything problematic happens.
  • If there’s anything left over, use that for fun stuff.

More on Robinhood apps

Cuban has previously criticized Robinhood because Robinhood has made it hard for Dogecoin investors to withdraw their holdings, as I wrote for the Deseret News.

  • “The greatest inhibitor to its growth is that you can’t spend the Doge you buy on Robinhood,” Cuban tweeted.

Investor Warren Buffett told CNBC that investing in stocks and cryptocurrencies on apps like Robinhood is a similar experience to gambling.

  • He said Robinhood has “become a very significant part of the casino aspect, the casino group of people, that has joined into the stock market in the last year or year and a half.”
  • “The degree to which a very rich society can reward people who now know how to take advantage essentially of the gambling instincts of not only the American public but the worldwide public, it’s not the most admirable part of the accomplishment,” said Buffett.