Three Things Your Favorite Celebrities Look For In A Great Investment

There is sometimes a misconception that celebrities constantly shell out cash on expensive goods, sprawling houses, yachts, expensive liquor and parties. In fact, some of America’s most brilliant investors are Hollywood celebrities. For many celebrities, the smart investments they have made offer them the resources to finance the luxuries that we are often sought after.

The most well-known well-known investor that comes to mind is P. Diddy, who has since seen his reputation rise far beyond the title of Hip-Hop star, with his massive interests in Ciroc Vodka, DeLeón Tequila, Sean John and The Revolt TV Network takes him very close to the $ 1 billion valuation.

Music stars such as Jay Z and 50 Cent join an extensive list of movie stars and entertainment stars such as Ellen DeGeneres, Robert DeNiro, Ashton Kutcher, Nas, Jessica Simpson, George Clooney and Reese Witherspoon, among others, to form Hollywood’s elite investors.

According to prominent investor and fund manager Sami Rusani, “Investments are the most common use of high liquidity,” Rusani further explains his position; “Celebrities are one of the classes in America that are paid large sums in cash for their work. This puts them at either great profit through investment or wasted through unbridled expenses. However, we constantly see many celebrities choose the former, but even then, great caution is still required to make investment decisions, or it could still end up being a waste. “

What celebrities look forward to

In 2006, Dr. Dre took his love of good headphones to market and co-founded Beats Electronics, a company that runs Apple
AAPL
bought for $ 3 billion in 2014. Jessia Alba took her love of eco-friendly products and built an eco-friendly brand, The Honest Company, which has since broken the $ 1 billion rating.

Aston Kutcher’s A-grade Investment Company was launched in 2010, and has since invested in unicorns such as Spotify, Uber.
UBER
, Skype and Airbnb, to name a few. A-Grade’s smart investments turned their initial $ 30 million fund into a more than $ 250 million portfolio within a few years.

The critical question to answer is; how do these celebrities do it? What informs their successful investments?

Familiarity and Passion

“It’s a bad business to invest in anything you are not familiar with, passionate about or knowledgeable about,” Rusani explains, “In my role as a fund manager and investor, I have personally noticed that the best investments in industries. which the investor understands and can predict. This principle has guided me in building my own portfolio with over 25 investments and in facilitating my three exits to date. “

A quick look at most of the investments that celebrities make, from headphones by Dr. Dre to CBD Companies by Snoop Dogg, will reveal one thing; Celebrities are looking for a safe space, a market they understand or are passionate about, and an industry to which they can contribute profitably.

In the words of Ashton Kutcher, “Invest in the things you know. If you drink beer all the time – if you go to microbreweries and you try all sorts of them – you probably know which one is the best, and my advice is always to invest in what you know … do the necessary research to know if it’s something that will have ultimate value. “

Futuristic fitness

To explain how a futuristic pace helps celebrities make investment decisions, Rusani poses an important question; “What will the future look like?” Since the beginning of time, thinkers, clergy, and philosophers have tried to answer this question, but in vain. “Mr. Rusani further explains,” They have failed to predict the future because the future is not hardened in stone. Innovators and inventors came closest to predicting the future because their innovations effectively create the future of humanity and how we relate to the earth. Among the wisest investors are those who observe the innovations that are ready to define humanity’s future and enter early.

Along with many celebrities such as Reese Witherspoon, Lindsay Lohan, Mike Tyson, Elon Musk, Snoop Dogg and Floyd Mayweather, Sami Rusani was also an early adopter of cryptocurrency in 2014. Sami Rusani’s firm belief in the futuristic relevance of cryptocurrency has a maintenance of cryptocurrency. strong interest in the industry, which helps raise more than $ 100 million for various crypto platforms and companies, while maintaining both equity and tokens in companies that have become market leaders.

In the words of Lindsay Lohan, “It’s just a matter of time until everyone gets involved in Hollywood and beyond, maybe we’ll see the tokenization of movies, and of how artists get paid in movies, music and art. I see ‘ a future where crypto, NFTs and blockchain will be the norm, rather than the exception. “

While the crypto-space has been getting some hits lately, it should be noted that the optimism of these celebrities may still materialize in the long run.

The need for a disruptive or futuristic trend in investing has also seen celebrities invest in a number of technology companies, from streaming services to fintech companies. Everyone wants to help shape the future, and celebrities consistently agree with their dollars.

Social impact

“I’m proud to be an impact – driven investor,” says Rusani, “Positive change is my thing, and this desire has led me to maintain several sustainability-oriented investments in my portfolio. In the investment sphere, social impact has become one of. the most important criteria when deciding to invest.Celebrities are concerned about social impact investing, not just because it’s a great thing to do, but because it guarantees returns, if not in dollars, in fulfilling the knowledge that they have helped to create a better world. “

Celebrities are perhaps the most impactful influencers of human behavior. With the social engineering taking place through their movies and art, it is refreshing that many major actors in Hollywood have taken a solid positive stance on social impact and sustainability.

Titanic star, Leonardo DiCaprio, has built up a record of investments in several small environmentally-oriented start-ups. Drake invested in and with an environmentally conscious fintech company, Aspiration, which took on the responsibility of calculating Drake’s environmental impact. Beyonce also has an interest in a Vegan liquor company WTRMLN
LN
WTR, which limits food waste by turning watermelons labeled for disposal into delicious watermelon water. At the same time, billionaire talk show host Ophrah has made a name for herself through her humanitarian investments worldwide.

According to IFC’s latest report, the global market for impact investments shows that $ 2.3 trillion was invested in 2020, of which $ 636 billion clearly had an impact management system in place. These figures suggest that impact investing is no longer in its early days and prove a sound investment choice. With the Covid-19 pandemic, the industry grew even more as more celebrities and entrepreneurs dedicated more dollars to help solve critical problems.

Having worked with some of the most prominent investors in various industries and helped raise more than $ 250 million in funds for other companies over the past four years, Rusani believes these three factors are the most crucial to the investment strategies of celebrities. and every modern-day top investor.