Undervalued investments
Multimillion-dollar mansions, private jets and professional sports franchises might seem like conspicuous consumption, but Cuban describes them as undervalued investments. The house he purchased was constructed for $25 million, which means his purchase price was a bargain. Given the fact that home prices have surged in recent years, it might be fair to assume Cuban's mansion is worth a lot more today.
As for the private jet, Cuban says it was a major time saver. “The most valuable asset you can never own is your time, and the one thing I can do is save time and get to places,” he told GQ. A multibillionaire dealmaker’s time is so precious that even notoriously frugal Warren Buffett owns a private jet.
Cuban’s most successful investment, however, was the Dallas Mavericks. He recently sold 72.3% of the team to the Adelson family for $3.5 billion, which means the team’s total valuation is close to $4.84 billion. Cuban confirmed he’s holding on to the remaining 27.7% stake in the franchise on a recent episode of the All In Podcast.
Throughout his career, the 66-year-old investor has focused on putting his money in places he’s most passionate about. If you share a similar passion for luxury real estate and sports, here’s how you, too, can turn your passions into lucrative investments.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreSports and luxury property stocks
Investors looking for a Cuban-style glamorous-but-undervalued opportunity should consider stocks such as Toll Brothers (TOL) and Liberty Media Corp (FWONA).
Toll Brothers focuses on constructing high-end luxury homes across 24 states. The company estimates that the luxury home market is likely to be undersupplied for the foreseeable future, which creates a lucrative opportunity for its team to plug the gap. Earnings have expanded at an annual rate of 28% over the past decade and the stock currently trades at 14.41 forward earnings per share.
Liberty Media isn’t a household name, but its subsidiary Formula One certainly is. The motor racing sport has seen a surge in popularity in recent years — 750 million fans tuned in to watch in 2024, according to Forbes. Liberty Media continues to invest in branding and sponsorship deals to monetize this popularity but it's also expanding the portfolio with new brands such as MotoGP, which was acquired last year.
These overlooked stocks could give you a chance to own a slice of the luxury real estate and thriving sports entertainment markets that Cuban has been betting on for decades.
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