Do We Need an Elon of the Left? (feat. Mark Cuban)

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Raging Moderates with Scott Galloway and Jessica Tarlov 31 min 5 speakers 7 chapters transcribed
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What are Trump's Liberation Day tariffs and their impact?

Mark Cuban 1:42
I mean, my initial reaction was it was shock and awe and it would just it would be turned shortly. And obviously that hasn't been the case yet. And I just think everything is so convoluted that it's hard to come to any conclusions right now other than it's really messy.
Scott Galloway 2:00
Well, speaking of mess, you've been advising people to stock up on everyday items, including toothpaste and soap.
Mark Cuban 2:05
That sounds... Well, no, let's take a step back there. So I read this book back in college, How to Retire. No, it was the only investment guide you'll ever need. And one of the things it said was one way to earn a guaranteed return was buying in bulk the normal things that you use on a daily basis when they're on discount. And so I said, OK, you know, stock up on things you have room to store, toothpaste, toilet paper, whatever, because tariffs are going to increase their price. I wasn't suggesting they were going to go out of stock like they did during the pandemic. It's just smart economics. If you can save 20, 30, 40 percent to avoid tariffs and get a discount at Costco, you're making money.
Scott Galloway 2:48
It feels like with any volatility, there's an opportunity to make money. I mean, I would argue, I think most economists would argue that this on the whole is just bad for everyone. There's few more elegant ways to reduce prosperity globally than tariffs, as far as I can tell. But as an investor and someone who's a student of the markets and has done really well, if and how has this changed your investment philosophy or do you see any opportunities? What is Mark Cuban doing right now with his portfolio?

How should we prepare for rising prices due to tariffs?

Mark Cuban 3:16
So there's a lot of different things. First of all, when Trump was elected, I sold most of my stocks and went to cash. So I'm actually a tiny bit net short coming into this. And so, you know, I didn't get hurt except I own a bunch of Bitcoin. So I got hurt a little bit there. But overall, you know, I'm treading water because I'm long and short. And so I went to cash just in anticipation that something like this could happen. And so in terms of what I've done so far, I bought a little bit of Berkshire Hathaway and sold calls on it because there's so much volatility. So not to get too in the weeds, but... Warren Buffett went to cash. And if I had a choice between having me invest my cash or Warren Buffett invest my cash, I'll have Warren Buffett invest my cash. And then selling the calls when the VIX is up high, meaning there's a lot of volatility, then you get the greatest return on selling calls, covered calls. So I did that. And that was two days ago.

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