Mark Cuban calls these investments 'death' for ultra-rich Americans. Are you making the same mistakes? Vishesh Raisinghani Sat, August 15, 2026 at 5:35 AM PDT 7 min read Club Shay Shay/Youtube Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Celebrities and athletes can make millions during their careers, but billionaire investor Mark Cuban has warned that what they do with that money can determine whether their wealth lasts. During an appearance on Shannon Sharpe's Club Shay Shay podcast, Cuban offered some blunt advice for those who suddenly come into wealth: "Don't invest in the restaurant, don't invest in the clothing label, don't invest in the liquor company ... or music," he said. "That is the death!" (1). Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 and experts say most people won't act in time. What to do before the window closes Here's why Cuban, a seasoned entrepreneur, avoids these flashy ventures with "no barriers to entry." Why Cuban looks for barriers to entry Cuban's advice to people with lots of money to invest is to hire somebody to manage it. "It cannot be your friend," he added. "It's got to be somebody who's done it for big time people." He warns against investing in industries like clothing, restaurants, or liquor, calling them "too easy to enter those businesses are hard because there's no barriers to entry." Barriers to entry, as defined by the Corporate Finance Institute, are factors like regulations, licensing, technology, or patents that restrict competition and enhance profitability (2). You can build your own circle of competency with trusted advisors who bring their expertise on growing wealth and Advisor.com can help you find a financial professional that's right for you. Advisor.com is a free online platform that connects you with vetted financial advisors. Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your financial goals. You can view the advisors' profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire. In contrast to high-barrier opportunities, Cuban's point is that launching a clothing line or restaurant requires minimal investment or expertise, making it easy for anyone to enter. This flood of competition reduces pricing power and profitability. Indeed reports the average profit margin for a full-service restaurant is just 3% to 5% (3). Story Continues Investors and entrepreneurs should keep an eye on the barriers to entry and whether they are backing a product that is truly exceptional. Read...
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