Serial entrepreneur and Shark Tank investor Mark Cuban is currently worth just north of $8 billion, according to the Bloomberg Billionaires Index. And while he's made new investments over the years that have added to his earnings, most of his wealth was created by savvy moves that he made with his first billion dollars.

In an interview with GQ Sports in 2022, Cuban said the three largest purchases he made after becoming a billionaire for the first time were a Gulfstream V (G5) business jet for $40 million, a $12.5 million mansion and, perhaps most famously, the NBA’s Dallas Mavericks for $285 million.

Here’s how all three investments created value for Cuban over the years, and how a similar model can help you make savvy investment decisions, too.

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.

82% of Americans are missing out on a savings account that pays over 10 times the national average