Investing Investing Basics

9 Things Barbara Corcoran Absolutely Nails About Investing

Why is this ‘Shark Tank’ investor overjoyed in going over budget?

Barbara Corcoran
Updated Oct. 31, 2024
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Barbara Corcoran, the powerhouse entrepreneur and “Shark Tank” investor, didn’t build her $100 million net worth overnight. Her path to success is a masterclass in practical investing — with strategies (and mistakes) anyone can learn from.

Whether through savvy real estate purchases or bold bets on new start-ups, Corcoran’s tactics offer real-world insight for anyone seeking to emulate her financial success. Here are some of Cococran’s most direct strategies to help you build wealth.

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Outwork the competition, no matter your starting point

Yingyaipumi/Adobe Using smartphone with cryptocurrency money

Corcoran often recalls struggling in school, saying she couldn’t quickly grasp letters and numbers. She had to work twice as hard as her classmates to get through classes, which forced her to develop resilience and hustle. 

Cocoran believes these foundational traits explain her success and that anyone can make up for knowledge gaps through hard work and practical experience.

For aspiring investors, this means taking the time to thoroughly research opportunities — whether in stocks, real estate, or startups. The extra effort and persistence will set you apart even if you feel like you’re playing catch-up or going deeper than needed.

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Overspend for the right property

Aldeca Productions/Adobe keys on papers real estate concept

Corcoran's "golden rule" for real estate? Overspend on the right property. 

It sounds counterintuitive, but she advises being the highest bidder on a property with prime potential in terms of location and future development. In the long run, she believes these investments are worth it.

Corcoran says that high-priced deals tend to generate the largest long-term profits. She advises others not to let budgeting constraints hold them back if they find the right property (and have adequate financing). 

Instead of the upfront price tag, focus on the value the investment can return over time.

Hold investments long enough to reap the rewards

itchaznong/Adobe technical price graph

Corcoran believes many investors make the mistake of selling property far too soon and recommends holding onto real estate for at least five years for a meaningful return. “Real estate,” says Corcoran, is a “slow way to get very rich.”

This principle extends beyond investment property, including stocks and other business ventures. She believes in staying the course amid market fluctuations.

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Use failure as fuel

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Corcoran is upfront about past failures and missteps. In fact, 90% of her “Shark Tank” investments have lost money. But Cocoran is still happy with her overall results, saying failure is part of the process. 

The few investments that did succeed have far offset any losses, and overall, she is much richer many times over for providing business loans to promising entrepreneurs.

She advises others to embrace risk instead of avoid it but be prepared to pivot when things don’t go as planned. Experiencing failure sharpens one's skills and sets one up for future wins.

Tap into family

Prostock-studio/Adobe man using calculator phone and laptop

Raising enough capital for your first real estate investment can be hard. Corcoran suggests that young investors team up with family or other financial partners in these situations. 

By pooling together resources, you may be able to afford a stake in properties that would otherwise be out of reach.

A strategic partnership to build wealth can be a stepping stone, allowing you to build equity and enough liquidity to invest independently.

Seek out tangible investments that resonate with people

Stephen Coburn/Adobe reading newspaper

Corcoran believes in investing in businesses that solve real problems. Whether a product or a property, investments with a clear purpose tend to perform the best.

On “Shark Tank,” Corcoran has a record of investing in simple, everyday products with mass appeal. Her $50,000 investment in a wearable blanket returned $468 million in just three years.

Break-even early to ensure profitability

sophon/Adobe Businessmen and investors and work

While Corcoran isn’t afraid to go over budget when investing in a desirable property, her goal is always to break even within the first year. 

This means that any rental income property must cover mortgage payments and expenses from the start, which positions the property to begin quickly generating a profit.

Having a benchmark, like breaking even within one year, is helpful for new investors. Early profitability can set you up for long-term viability.

Take advantage of down markets

Jelena/Adobe accountant using calculator at home

Following Warren Buffett’s advice to “be fearful when others are greedy and greedy when others are fearful,” Corcoran believes that down markets present some of the best investment opportunities. 

She’s highlighted the 2008 housing collapse as a prime example. Many properties purchased when the market hit rock bottom have since rebounded and soared in value.

Be active when others are skittish, and use downturns to your advantage. They often present an excellent time to acquire undervalued assets.

Be selective about diversification

Prostock-studio/Adobe guy using calculator

While many financial experts stress the importance of diversification, Corcoran takes a different stance. She prefers to concentrate her money on areas she knows best, such as real estate or consumer products, with tangible benefits.

Her success shows that careful, focused investments in a more limited portfolio can sometimes outperform broader diversification. The key for Corcoran is to invest in what she knows and avoid spreading herself too thin.

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Bottom line

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Barbara Corcoran’s wealth-building playbook is built on patience, hard work, and smart risk-taking. 

Whether it’s investing in businesses, properties, or consumer products, Corcoran isn’t afraid to wager big and knows that the path to success is often dotted with setbacks.

Although there are no real shortcuts to wealth when you start investing, Corcoran has shown that persistence, confidence, and hard work – being willing to outwork the competition — can pay off big.

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