“Shark Tank” investor Robert Herjavec didn’t build his fortune on salary alone. Long before television, he made his money through ownership, exits, and capital gains.
He laid that out during an interview on the “School of Hard Knocks” podcast last year, where he was asked, “Throughout your career, what was the most amount of money you made in a single year?”
“$500 million,” Herjavec said. “But that included the sale of a business in capital gains. On an income basis, I probably $18 million. But here’s the key. You can get very rich making income. It’s very hard to get wealthy making a big income. You got to have capital gains.”
That distinction set the tone before the conversation turned to how he actually invests.
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The Advice That Redirected His Focus Away From Stocks
At one point, he was asked, “As a multi-figure entrepreneur, what is the best financial advice you’ve ever received?”
“I’m not a big investor in stocks,” Herjavec said, making it clear that while he has money there, it’s not where he leans.
Then came the line that stuck.
“Charlie Munger said to me one time, ‘If you want to become rich in life, never sell a house. Always keep every house.'”
That advice came from the late vice chairman of Berkshire Hathaway, Charlie Munger, Warren Buffett’s longtime business partner. Before building that reputation, Munger worked as a real estate attorney and invested in property himself, developing and owning apartments and other projects over the years. His approach wasn’t about quick trades. It was about holding assets long enough for time to do the heavy lifting.
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Real Estate Works When Time Is On Your Side
That mindset shows up clearly in how Herjavec talks about property.
“I’ve never lost money on real estate,” he said. “You have to be able to hang on to it. So, if you can hang on to a property for 10 years, for sure you’ll make money. The problem is from liquidity if you have to sell it within 10 years.”
That’s the catch. The strategy works, but only if someone can afford to wait. Selling early often isn’t a choice. It’s a necessity. And that’s where the long-term upside disappears.
The Same Thinking Carries Into Business And Decision Making
That patience-first approach doesn’t stop at investing.
In the same conversation, he pointed to a common mistake in sales. People pitch before they understand who they’re talking to. His approach flips that. Figure out the need first, then respond to it.
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It’s a different setting, but the pattern holds. Whether it’s property or business, the advantage comes from staying in the game long enough and making decisions based on understanding, not urgency.
A Way To Get Exposure Without Owning An Entire Property
For those not ready to buy and hold real estate outright, there are other ways to get in.
This post was originally published here
