Mark Cuban's investment advice for 2006

Take a look at Mark Cuban's "My Investment advice for 2006". The guy is rather wealthy and clearly knows how to make money. It's interesting that a couple of things he said at the end tracked some of my recent ramblings, such as cost-cutting and investing the savings  and investment in my own skills as likely having a bigger financial return for me in the near future than picking the next hot stock. His closing points:

So here is my investment advice for anyone who doesn’t have enough saved to walk away from their job and retire…

1. If interest rates stay where they are or go higher, look at 5 year or shorter maturity vehicles. It doesnt matter if its a bank CD, a money market fund, a tax free fund, treasuries or combinations there of. Bottom line is this, 4plus percent taxed, or up to 6 plus percent tax free equivalent (depending on your tax bracket), is not a bad way to go. If rates go down, do the same thing, evenif you earn a lower rate. At the end of the year, you are guaranteed to have more than you started with.

2. Evaluate your lifestyle. People forget that sometimes the best investment they can make is in wisely buying things they know they will use. If you track what you use and consume, whether its gas vs bus fare, buying bulk quantities or other discretionary spending, you can save more and earn a far greater return than you could in the stock market. If you can save 10pct per month on a hundred dollar per month budget, thats 120 bucks you can put in the bank. Thats the equivalent of earning 12 pct on a 1k dollar investment. If you can cut 100 bucks per month off 1k dollar monthly budget, thats like earning 12 pct on 10k dollars. Thats pretty darn good.  Spend smart, put your savings in risk averse, interest earning offerings.

3. Invest in yourself. Do the things that can get you closer to your goals and dreams. It wont come from a brokerage commercial. It will come from preparing yourself ,  working hard and standing apart from your competition. You Inc is the best stock you can ever buy…if you are willing to do the work.

Incidentally, here's our own Stock Market Outlook for 2006.

Oh, and my sincere apologies for Mr. Cuban's incorrigible refusal to use apostrophes. Sign. I wish I had a $Billion so I could get away with it too.

-- Jack Krupansky