Shark Tank's Robert Herjavec Says He's 'Never Lost Money On Real Estate' — Credits Charlie Munger's Simple Rule

Shark Tank star Robert Herjavec has amassed a fortune of over $600 million from his diverse business ventures. His journey was anything but traditional. Lacking formal training in business or accounting, many doubted his potential as an entrepreneur. Nonetheless, he developed his skills and technical expertise to build leading cybersecurity firms.

Herjavec scaled these companies to impressive heights before selling them to tech giants and private equity firms. His breakthrough came in 2000 with the sale of Brak Systems, an internet security software integrator, to AT&T Canada for nearly $30.2 million. Over the past two decades, Herjavec has followed a similar pattern—building and selling multiple companies to industry giants such as AT&T and Nokia.

Today, Herjavec advises governments and enterprises on cybersecurity strategies. He has also authored several books, continues to invest in various businesses, and mentors aspiring entrepreneurs. To date, he has invested more than $16 million across 57 deals on Shark Tank.

During an interview on the School of Hard Knocks podcast last year, Herjavec revealed the best financial advice he had ever received for creating wealth. While clearing the air that he is not a big investor in stocks, the entrepreneur recalled Charlie Munger's advice on wealth creation through real estate.

The late vice chairman of Berkshire Hathaway and Warren Buffett's longtime business partner had once told Herjavec to never sell a house. 'Charlie Munger said to me one time, "If you want to become rich in life, never sell a house. Always keep every house,"' Herjavec had stated in the interview.

Leveraging Time to Make Real Estate Work For You

Munger had worked as a real estate attorney and invested in property himself before building his reputation as Berkshire. He would also engage in developing and owning apartments for years, with the goal to hold those assets long enough for time to do the heavy lifting.

'I've never lost money on real estate. 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,' Herjavec had explained in the interview.

Most of the time, selling early is a necessity rather than a requirement, which is where the long-term upside vanishes. For Herjavec, high income can create comfort, but when it comes to real estate, the test isn't about investing but staying invested long enough for it to matter.

When asked about how much money he made in a single year, Herjavec said it was $500 million, but it included the capital gains from the sale of a business. 'On an income basis, I probably made $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,' he concluded.

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