Mark Cuban: The Brutal Truth About The Next Market Crash! – Transcript

00:00AI is not smart. AI doesn't know the consequences of its actions. It doesn't have inherent ethics. Those companies keep on borrowing and spending more money in order to power all the AI, but they're borrowing more than they're making. We literally could get into a debt bubble. You do you think we're in a bubble, don't you?

00:16>> Yeah. >> What causes it to burst? >> I'll tell you this. >> So, what are the most sort of foundational things that needs to understand the Mark Cuban that we've all grown to love from the Shark Tank and the businesses and the Dallas Mavs and >> So, business was an area where I I was always ahead of the curve, no matter how old I was. Growing up, I went door-to-door in the neighborhood selling garbage bags, and that probably catapulted me more than anything cuz if you can go door-to-door and sell, you can do anything. Like on a Shark Tank, when somebody walked in and told me about their company, I knew exactly how I would sell it.

00:43>> What are the sort of consistent themes amongst all people that become an entrepreneur? >> Well, you've got to find one thing and be great at it. And then, find a way to turn that something into a business. Next, if you're going to do anything with technology, media, whatever it may be, you better be ahead of the curve because business is like a sport. If you don't keep on getting better and improving your game, you're not going to be able to compete. But, what we don't talk about is what do I suck at?

01:07Suck at it. >> And one of the biggest mistakes I made >> was I was a jerk. I would yell. I would scream, and I found that I got a lot further by being nice than by being a dick. >> The last thing I wanted to ask you about is your more recent decisions around leaving Shark Tank, selling the Mavs. >> I'll tell you this.

01:22That tells you all you need to know. >> I've got some wonderful photos here that we >> Yeah, that's my brother Brian. >> Brian, he wrote you a letter. >> Oh my god, I'll probably start crying. >> Here is a strange fact. Most of the people watching this right now, about 58% of you, aren't yet subscribed to this channel. Statistically, that is

01:49probably you. So, could I ask you a small favor? If this channel has ever given you any value at all, please could you do me a favor and hit the subscribe button? It costs [clears throat] nothing. It helps us more than you could know. And the bigger the channel gets, as you've seen, the more we can invest in the guests and the production. So, thank you so much and I hope you enjoy this episode.

02:08>> >> Mark, >> There are so many things happening in the world at the moment and just specifically focusing in on business and technology and AI. One of the remarkable things I often reference about you is in spite of your success, you continue to self-educate.

02:27And I've watched this in you over multiple cycles of technology. When crypto became a thing, when AI showed up, one of the first things I see on my timeline is Mark Cuban going back to school. >> Yeah, for sure. >> What's going on in your head at the moment?

02:41>> To me, business is like a sport. And if you don't keep on getting better and improving your game, you're not going to be able to compete. And if you're going to do anything with technology, media, whatever it may be, you better be ahead of the curve, otherwise there's going to be some kid in high school somewhere going to kick your ass. And I want to be the one doing the ass kicking instead of getting their ass kicked.

03:03>> What are the most sort of foundational things I need to know about your earliest contacts to understand the Mark Cuban that we've all grown to love and know from the Shark Tank and the businesses and the Dallas Mavs and >> I think I just grew up in a regular family and just had the piss and vinegar in me to always want to compete, like I said, and I was able to turn an idea into a business and be successful.

03:25>> And you had very um formative parents by the sounds of things. >> Yeah, I mean, I had great upbringing. My dad did upholstery on cars, pure blue collar. My mom did odd jobs. >> Of course, my dad. >> Yeah, that's my grandparents, my mom. My mom was only 20 when I was >> brother Brian, who's the middle brother, and my dad. That's when we lived on Meadowlark in Pittsburgh.

03:47>> Your father never made more than $40,000 in his life. >> Never. No, he would be up work um and gone by the time we were leaving for school. He actually lost an eye when he was doing upholstery. There was a staple that broke when I was in sixth grade, but he just always was a grinder and just Yeah, amazing. I miss him.

04:07>> You miss him? >> I miss them both. Everywhere we went, he always had friends, and if he didn't know people there, they quickly became his friends. And I think that set a great example for my brothers and I more than anything. >> What are some of those sort of high-level lessons that you always reference come from him?

04:22>> You know, he would say things that like you don't live in the world you were born into. You know, today's the youngest you'll ever be. That type of thing where, you know, no matter what hustle I had going on, he was always supportive. Always. >> And what did you think you were going to be when you were older at that age in those photos?

04:38>> Oh, a baseball player. >> Really? >> >> Yeah, I was good, but not good enough. Um, but then after that, it became apparent that I was going to be a business guy. >> I mean, I think it was apparent from your Yeah, I sold >> cards when I was a kid. >> Yeah.

04:51>> Oh my god, you got some good ones. >> I mean, you also started selling some of these out here as well. >> Yeah, so what I would do is >> >> Yeah, so when I was like 9 or 10 years old, I would go to the local pharmacy, and they would sell packs of baseball cards. And I would buy a bunch of them, um, with my allowance, and then I would repackage them using like the comics and everything for the paper. Buy these for like I cost me like a quarter, buy them for 50 cents. You're guaranteed to get a Pittsburgh pirate like Roberto Clemente

05:19or Willie Stargell. And I would sell them and make money, then I'd go and turn it around and make more. And that literally was my first start in hustling. And then one day, my dad was playing poker with his buddies, you know, they'd rotate to each other's houses, and he they were at our house, and I went in there to grab a donut, and I was like, "Dad, I want a new pair of basketball shoes." And he looks at my feet, and he goes, "Those shoes work.

05:43When you have a job, you can buy whatever you want." I'm like, "Dad, I'm 12." And one of his buddies who had to have been drunk was like, "Hey, I got something you can sell. I've got boxes of garbage bags that I'll sell to you for $3 and you can sell them for six."

05:57And literally, I went door-to-door in the neighborhood and I'd be like, "Hi, I'm your neighbor Mark. Do you use garbage bags?" Easy sell, right? And that probably catapulted me more than anything cuz if you can go to door-to-door and sell, you can do anything.

06:12>> This whole idea of selling is um is sort of very top of mind for you in terms of the one of the ultimate skills of building becoming an entrepreneur. And and I it's so funny cuz I spent a lot of time in call centers when I was younger doing cold calls, but I always say that the best sales experience is door-to-door sales.

06:27>> Or call or call call centers, right? Every no gets you closer to a yes, right? Just knowing how to deal with people telling you no and how to deal with objections and how to respond quickly. It just trains your mind to be quick. And once you can sell, I mean, you have a job for life.

06:43>> Why is selling so important as it relates to becoming an entrepreneur? >> No business has ever succeeded without sales. And if you don't think your product or service is so good that you're dying to sell it, that you think that by talking to somebody about whatever product it is, you're not helping them, right? Cuz that's the whole point of sales. You know, when you were in that call center, what did you sell?

07:04>> Uh everything. Uh windows, doors, conservatories, double glazing. >> Right, right. And it was all about helping them. And you'd have the objections and I I'd go sell it I was selling magazines door-to-door. Once you learn how to sell, once you learn how to deal with objections, once you your mind is spinning waiting and reacting just like you did in a call center, what can't you sell?

07:24>> Are there any principles of being a good sales person? Or even in you know, on Shark Tank, when you see someone come in and they're great at sales, what are those principles? >> You care. You know your product. You want to help people. You're not trying to convince them to do something against their interest. You're trying to understand and learn their interest and help them achieve their goals or whatever your product may have happen to do. It may be, hey, you don't have to go to the store and pick up a back or it may be when you're selling something, you know,

07:51windows. You know, you don't want to look through those dirty windows. You know, you know there's a crack. You know your electricity bill is up way too high because of your windows and we're here to replace them and for only $17 a month will save you, you know, it'll more than pay for itself in the electricity bill, right? Like on a Shark Tank when somebody walked in and told me about their company, I knew exactly how I would sell it or could not sell it.

08:15And once you can do that, you're always going to be able to get a job. And if you are an entrepreneur or want to be an entrepreneur and you find something that you love and a product or service you love, then selling it's easy. >> You know, oftentimes we hear about people becoming wildly successful billionaires because they came up with some tech idea. It was their first thing, like a Zuckerberg.

08:37>> Right. >> And it becomes this huge success and they're like 25. >> Right. >> So sometimes when we're like 32, >> >> So Mr. Ball, right? >> we missed the boat. >> Yeah. >> But then when I read your story, you know, I think you were like 31 years old, 32 years old and your first business was sold for $2 million, which is a >> It was sold for five and netted two.

08:54>> You mean netted two, okay. What is the big misconception that like young people these days have about what it takes, whether it's in terms of sacrifice or time or patience or compounding skills because they are incredibly impatient, I think.

09:07>> Yeah, I mean, I was just as impatient, but I think it really depends on your personal circumstances. Like I had nothing to lose. I was broke. You know, I had gotten fired from a job, so starting MicroSolutions was an easy choice.

09:21I was living six guys in a three-bedroom apartment, didn't have my own bedroom, so it was like, why not? And I remember being terrified and thinking, okay, I've been in business 1 month, that's a win. 3 months, 6 months, 9 months. I have $15,000 in accounts receivable, you know, I'm on my way of moving out of this [ __ ] I live in. So, it really depends on your personal circumstances, but I I always tell young entrepreneurs, like if you're broke and you got nothing to lose, you know, even if you're working a job,