Mark Cuban Says Investors Should Keep Cash Ready for the Next Market Sell-Off

Billionaire investor Mark Cuban believes holding cash and exercising patience could give investors a major advantage when the next market downturn arrives. Rather than chasing rising stocks, he encourages investors to maintain liquidity and wait for opportunities when prices fall and others are rushing to sell.
Speaking on “The Diary of a CEO” podcast with Steven Bartlett on October 26, Cuban explained that investors can participate in market rallies while keeping some cash available for a downturn.
“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. He added that when markets reverse, “that’s when the real magic happens and where the real money is made.”
Cuban pointed to the COVID-19 market crash as an example of the strategy in action, saying he began buying assets as prices plunged and benefited significantly from the rebound.
His cash-first philosophy dates back to a 2008 Blog Maverick post titled “How to Get Rich,” in which he argued that investors should save money not only for retirement but also for opportunities created by market turmoil. He wrote that having cash available is the first step toward building wealth.
The approach echoes Berkshire Hathaway’s long-standing strategy under Warren Buffett, with the company maintaining substantial cash reserves while waiting for investments that meet its standards.
However, many American retirement savers have limited cash exposure. Vanguard’s How America Saves report found that defined-contribution plan participants had an average equity allocation of 78% in 2024, with the median allocation reaching 87%.
Cuban’s comments are not a call to liquidate 401(k) accounts or abandon long-term investing. Instead, his message is about maintaining financial flexibility rather than committing every available dollar to the market.
Holding cash has its trade-offs: investors may miss gains if stocks continue climbing, and liquidity alone does not guarantee profits. But when markets fall sharply, having money available can create opportunities to buy assets at lower prices.