LF
Mark Cuban: Shark Tank, DEI & Wokeism Debate, Elon Musk, Politics & Drugs | Lex Fridman Podcast #422
@ Lex Fridman
03/30/24
Takeaways
LF
Lex Fridman Cast
03/30/24
@ Lex Fridman
The person who controls the algorithm controls the world, and if you're committed to one specific platform as your singular source of information, then whoever controls the algorithm controls you.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Somebody who's curious and wants to keep learning is essential because business is ever-changing and never static.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Being agile is crucial; as you learn new things and the environment changes, you must adapt and make necessary changes.
MC
Mark Cuban
03/30/24
@ Lex Fridman
No business has ever survived without sales, so being able to sell is vital for an entrepreneur.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Selling is about helping others. I always put myself in the shoes of another person and ask, 'Can I help this person? Can my product help them?'
MC
Mark Cuban
03/30/24
@ Lex Fridman
From the time I was 12 years old, I learned to sell by asking simple questions like, 'Do you use garbage bags? Do you need garbage bags?' and offering to deliver them to save time.
MC
Mark Cuban
03/30/24
@ Lex Fridman
To succeed in business, you need to do something that others aren't doing, which often involves improving productivity and profitability for clients.
MC
Mark Cuban
03/30/24
@ Lex Fridman
You don't have to be a born salesperson; you just need to be willing to put in the time to learn the business and ask the right questions.
MC
Mark Cuban
03/30/24
@ Lex Fridman
You have to be a voracious consumer of information to keep up with the ever-changing world; otherwise, your sales skills will be useless.
MC
Mark Cuban
03/30/24
@ Lex Fridman
My dad taught me to be nice, caring, and accepting, emphasizing the importance of being a good human, which he tried to pass on to my brothers and me.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I learned the value of hard work and the importance of education from my dad, who wanted us to avoid the backbreaking work he did.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When starting a business, you need to be in a position where you're confident and prepared; if you're unsure, you're likely not ready to start.
MC
Mark Cuban
03/30/24
@ Lex Fridman
If you want to take the next step in starting a business, you must be able to deal with the consequences of changing your circumstances.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Desperation can be a good catalyst for starting a business, especially when you have nothing to lose.
MC
Mark Cuban
03/30/24
@ Lex Fridman
If starting a business is important to you, you'll save money and put in the work to learn about the industry to be prepared when you start.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Entrepreneurship in America is driven by a culture of consumption and the potential for significant upside, despite the risks involved.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The law protects entrepreneurs in America, allowing them to trust that if they succeed, they won't face government interference.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Entrepreneurship is what separates America from other countries, and we are the most entrepreneurial country in the world.
MC
Mark Cuban
03/30/24
@ Lex Fridman
We need to celebrate entrepreneurs who take risks and succeed, rather than immediately matching their success with distrust and criticism.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Social media has changed how we celebrate entrepreneurs, amplifying both positive and negative sentiments about wealth and success.
MC
Mark Cuban
03/30/24
@ Lex Fridman
"Shark Tank" celebrates the American dream by showcasing entrepreneurs and sending a message to young viewers that they can achieve their dreams too.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Even when business ideas are bad, the courage to step up and believe in oneself is what truly matters.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The success of entrepreneurs doesn't always have to be measured in millions; it can also be about personal happiness and fulfillment.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Many entrepreneurs tend to overvalue their businesses, which often leads to conflicts during pitches on "Shark Tank."
MC
Mark Cuban
03/30/24
@ Lex Fridman
The most bizarre pitch I encountered was for a scraper designed for cat's tongues, highlighting the diversity of ideas presented on "Shark Tank."
MC
Mark Cuban
03/30/24
@ Lex Fridman
The valuation of a business is determined by its ability to generate cash flow that can be distributed to investors, or by its potential for acquisition based on unique technology or market position.
MC
Mark Cuban
03/30/24
@ Lex Fridman
To assess if a company can generate revenue, I look at whether the entrepreneur can sell the product or if someone on my team can help them sell it.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Barbara Corcoran has an incredible ability to evaluate whether an entrepreneur can do the job just by listening to them for a short time.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Entrepreneurs often overvalue themselves and may exaggerate their understanding of the market or the capabilities of their product.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I can identify if an entrepreneur is delusional or misleading by asking the right questions during our discussions.
MC
Mark Cuban
03/30/24
@ Lex Fridman
There's a delusional aspect to entrepreneurship; you have to set aside reality to believe you can create a billion-dollar company.
MC
Mark Cuban
03/30/24
@ Lex Fridman
You need to be able to balance ambition with reality, focusing on executing the business plan while having a vision.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Entrepreneurship requires continuous iteration of your product, sales pitch, and marketing strategies to adapt to changing conditions.
MC
Mark Cuban
03/30/24
@ Lex Fridman
In the early days of the internet, we started AudioNet, the first streaming content company, which evolved into broadcast.com, the largest multimedia site at the time.
MC
Mark Cuban
03/30/24
@ Lex Fridman
We made our revenue by leveraging our consumer network to offer corporations a more cost-effective way to communicate with their employees through streaming.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When we sold broadcast.com to Yahoo for $5.7 billion in stock, I was focused on protecting my investment from the market bubble.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I executed a collar strategy to protect my investment after selling to Yahoo, which turned out to be one of the top trades of all time.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The current AI landscape doesn't show signs of a bubble yet, as there aren't many companies going public without intrinsic value.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I believe that becoming a billionaire requires a combination of skill and luck, especially in timing with market trends.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Luck is essential to becoming a billionaire, and I believe everything good that has happened to me is due to luck.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Success for me is waking up every day with a smile, excited about the day ahead.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When you get that kind of money, it doesn't necessarily make you happy; if you were happy when you were broke, you'll be even happier when you're rich.
MC
Mark Cuban
03/30/24
@ Lex Fridman
You have to find what puts a smile on your face every day, whether it's external or internal happiness.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The most valuable asset isn't money; it's your time, and I wanted to retire young to experience everything life has to offer.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When I took over the Dallas Mavericks, I focused on winning and invested in player development, which changed the team's culture and performance.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The NBA is in the experience business, not just basketball; fans remember the experiences they have, not just the scores.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The energy in an arena during a game is unique and essential to the experience, and we started selling that energy to fans.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I respect Elon Musk's choices on his platform, even if I disagree with him, and I believe in sharing my opinion on DEI issues.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The essence of DEI programs is to expand the pool of potential applicants and ensure that once hired, individuals are supported to succeed.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Diversity means looking for quality employees where others aren't looking, equity means setting them up for success, and inclusion means providing support for their unique needs.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Quotas are illegal unless trying to repair past discrimination, and poorly implemented DEI programs can lead to reverse discrimination, but there's more discrimination against people of color than against white individuals.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Nobody believed they did, and they knew that created problems.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Saying something publicly that was in the CEO's eyes to the detriment of the company is a significant issue.
MC
Mark Cuban
03/30/24
@ Lex Fridman
If you're trying to accomplish something within an organization because you think there's a problem, leadership has to decide if they agree or not, and whether it's positive or negative for the company.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I haven't seen conservatives being silenced in organizations, despite claims to the contrary.
MC
Mark Cuban
03/30/24
@ Lex Fridman
In corporate America, discussions about Diversity, Equity, and Inclusion (DEI) often revolve around ideology, and many leaders feel pressured by universities to adopt these ideologies.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When I asked Bill Ackman about who tells him what to do in his companies, he mentioned the influence of universities and their DEI ideology, but he didn't feel coerced.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I haven't felt any pressure to make business choices regarding DEI; it's always been my decision based on my experiences.
MC
Mark Cuban
03/30/24
@ Lex Fridman
A recent survey indicated that 40% of people who were fired believed it was unjust, reflecting a disconnect in performance perceptions within organizations.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The ideal of DEI is beautiful, but its implementation often protects underperforming employees, which can hinder organizational effectiveness.
MC
Mark Cuban
03/30/24
@ Lex Fridman
While the goal of DEI is commendable, the way it's implemented in universities often leads to inefficiencies and rising costs.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The criticism of DEI often stems from a misunderstanding of its goals versus its execution, especially in academic settings.
MC
Mark Cuban
03/30/24
@ Lex Fridman
In the corporate world, I focus on DEI because that's where I operate, and I see a need for better implementation of these ideals.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The free market should correct biases in technology, but if companies are dominated by a single ideology, it can lead to blind spots in their products.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The person who controls the algorithm controls the world, and if you're committed to a single source of information, it can limit your perspective.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The fundamental problem isn't woke ideology itself, but rather how people become attached to specific platforms and media outlets, leading to a divided perspective.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The lack of transparency in the healthcare system leads to a lack of trust, making it a broken system.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Cost Plus Drugs aims to solve the issue of trust in healthcare through complete transparency in drug pricing.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When you visit costplusdrugs.com, you can see the actual costs of medications, including a 15% markup and any pharmacy fees, which revolutionizes drug pricing in America.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The big pharmacy benefit managers prioritize profits over everything, operating in an opaque industry where they can manipulate prices without accountability.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The big three pharmacy benefit managers will not disclose their pricing structures, making it impossible for clients to know if they are being charged fairly.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Pharmacy benefit managers often prevent access to cheaper biosimilars like YUSIMRY because they do not receive rebates on them, prioritizing profit over patient savings.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Cost Plus Drugs provides a transparent price list for over 2,500 drugs, contrasting sharply with the lack of transparency from major pharmacy benefit managers.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When dealing with big pharmacy benefit managers, obtaining claims data can be a lengthy and frustrating process, often requiring significant pressure to receive any information.
MC
Mark Cuban
03/30/24
@ Lex Fridman
CEOs often lack understanding of healthcare coverage, which leads to significant costs for their companies.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When I started Cost Plus Drugs, I realized I needed to understand how I was paying for healthcare for my employees and their families.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Many companies use employee benefits consultants, which can lead to unnecessary costs, as they often direct businesses to providers that pay them the highest commissions.
MC
Mark Cuban
03/30/24
@ Lex Fridman
By analyzing our prescription drug costs, I discovered that we spent $169,000 with a pharmacy benefit manager, while it would have only cost $19,000 through Cost Plus Drugs.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Insurance companies and pharmacy benefit managers (PBMs) often dictate which medications are authorized, sometimes requiring patients to try cheaper alternatives first, regardless of their effectiveness.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I believe every company with over 500 employees should have a healthcare CEO to manage healthcare costs effectively, as healthcare is often the second largest expense after payroll.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The healthcare industry is opaque, and many CEOs are unaware of how their healthcare dollars are being spent, leading to inefficiencies and overcharging.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The healthcare system is complex, and companies often outsource their healthcare expertise instead of having an internal expert, which can harm employee wellness.
MC
Mark Cuban
03/30/24
@ Lex Fridman
If employees are not healthy or are worried about their families, it negatively impacts company performance more than any DEI program.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I started Cost Plus Drugs after realizing the inefficiencies in the pharmaceutical market, especially after the price hike of a drug by Martin Shkreli.
MC
Mark Cuban
03/30/24
@ Lex Fridman
We aim to create a transparent pricing model for medications, allowing consumers to see the actual costs and markups, which can disrupt the current opaque system.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The big three PBMs are not reimbursing local pharmacies adequately, causing many to go out of business, which is detrimental to community healthcare.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The government is complicit in the failure of community pharmacies by allowing these reimbursement practices to continue, especially under Medicare.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Cost Plus Drugs is working with independent pharmacies to create supportive programs that can help break the current cartel-like structure of the pharmaceutical industry.
MC
Mark Cuban
03/30/24
@ Lex Fridman
In healthcare, transparency is crucial, and we plan to post all our contracts and pricing to help other companies navigate the system more effectively.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I use my name to promote Cost Plus Drugs because it's the only company I've ever put my name on, and I believe in its mission.
MC
Mark Cuban
03/30/24
@ Lex Fridman
The healthcare industry lacks public figures advocating for transparency, unlike the tech industry where CEOs are more open about their companies.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I believe that as AI models become more efficient and less expensive to train, there will be more reasons for companies to open source their technology.
MC
Mark Cuban
03/30/24
@ Lex Fridman
I see hope for humanity in the curiosity and spirit of young people, as they ask questions and seek to understand the world around them.
MC
Mark Cuban
03/30/24
@ Lex Fridman
Young people today are dreaming big and seeing opportunities to make the world better, which is exciting for the future.
MC
Mark Cuban
03/30/24
@ Lex Fridman
When I talk to kids, I encourage them to ask themselves why they can't be the ones to change the world, emphasizing that every idea starts with a spark.