Celebrities usually have huge incomes. Whether they are actors, musicians, TV presenters, entrepreneurs, influencers, youtubers or socialites, most have significant income. We would think that for them it is enough with the income they have for their economic activity. On the contrary, many of them make investments to preserve their heritage over time. That is why today we will talk about what celebrities and celebrities invest their money in.

Many of them invest in activities connected to their work. Others, on the contrary, invest their money in activities that are completely alien to them. Some do their job of researching where to invest. Others invest through advisors who are dedicated to celebrities and celebrities. Some will wonder, “Why do celebrities invest if they have so much money?”. In this article you will find the answers you are looking for.

Why invest and why do celebrities invest?

We all know that, however small inflation may be, money over time loses value. With inflation as small as 2%, money saved over 10 years loses 20% of its value. If we save for our retirement, with an inflation of 2% the money kept for 30 years loses almost 50% of its value.

For athletes, musicians, and actors whose careers can be spectacular but fleeting, preserving the value of money is essential. That is why the money they earn quickly if they do not invest it will end up disappearing a few years.

We have already talked about this topic in our article “Finance for athletes“. There we mention how short your professional career can be.

As we said, the career of a celebrity can be very short. If we add to this the immaturity of youth, we have the conditions for a financial collapse. For example, statistics show that more than half of athletes spend their savings in less than 5 years. With this, their financial stability disappears, no matter what their income.

The same usually applies to musicians, actors among other celebrities. That is why today we will see the keys to avoid the financial debacle and we will reveal the following question: what do celebrities invest in?

What do celebrities invest in?

Celebrities can invest in businesses, the stock market, or any other asset. They invest in numerous instruments. One of the keys is to diversify your investment portfolio. Next, we will tell you what some celebrities invest in:

1. Sylvester Stallone: The famous Hollywood actor has been characterized by his propensity to invest. His first known investment was “Planet Hollywood”, a themed restaurant he founded in partnership with Bruce Willis, Demi Moore and Arnold Schwarzenegger. This has become a famous chain of restaurants around the world. It has also invested in real estate. He has also invested in a football team, other restaurants, a liquor brand and even clothing and perfumes. Stallone is a well-diversified investor.
2. Ashton Kutcher: Thanks to his portrayal of Steve Jobs, he discovered his passion for business. To date, it has investments in shares in more than 50 companies. In addition, he founded a venture capital firm called A-Grade Investments, focused on application and e-commerce companies.
3. Beyoncé: The famous singer began her career as an investor when she asked as payment for a concert in Las Vegas were paid in shares of Uber. This happened even before it was listed on the stock exchange. Thanks to this, his 6 million dollars of fees became 300 million.
4. Jared Leto: Invest in tech startups when they’re just starting out. Some of the companies in which he invested were Snapchat, Spotify, Uber and Airbnb. Undoubtedly excellent investments considering what happened.
5. Jessica Alva: Your company “The Honest Company” sells beauty products for the skin, vitamins, cleaning products among others. It currently had revenues of more than $100 million and profits of more than $30 million. A true entrepreneur.

Famous investors

Some people were not famous before investing, and it is precisely because of their enormous success in investing that they have made fame.

Some are entrepreneurs who have a vision of growth, investments, and acquisitions. Next, we will know a little more about them:

Peter Lynch: This famous Wall Street investor has a net worth of $352 million. However, what made him extremely famous was his streak between the years 1977 and 1990. In those years he was a manager of Fidelity Investment, and his profitability was almost 30%, double the Standard & Poor’s 500 index. He wrote a book that all those interested in financial markets should read called “A Step Ahead of Wall Street.”

David Tepper: This Star of the investment funds accumulates to his credit a return of 25%, thanks to it he is one of the most famous on Wall Street. His specialty is debt markets. His net worth is 11 billion dollars

Bill Ackman: She’s the nemesis of investor Carl Icahn, which we’ll talk about later. The dispute between Ackerman and Icahn stems from an investment dispute where Ackerman bet against Herbalife and lost billions. This even led to a public discussion with insults on American television. The truth is that the disaster was so great that it attracted attention and has subsequently had great successes, even during the pandemic. His net worth is one thousand eight hundred million dollars.

Other famous, even more successful investors

Ray Dalio: His full name is Raymond Thomas Dalio. Dalio is the founder of the largest hedge fund management company, Bidgewater. Since 1975 it has been growing to manage the sum of 135 billion dollars. A billionaire and philanthropist, Ray Dalio is one of walt street’s most famous investors, and the world. It is estimated that the wealth of this Harvard graduate is more than 18 billion dollars.

Carl Icahn: He is a combative investor who likes to swim “against the current” when acquiring companies. Sell when the market buys and buy when the market sells. In this way, he says he takes advantage of the best time to compromise, avoiding following the herd. This American investor and entrepreneur has a net worth of 17 billion dollars. He already has more than 50 years in the stock markets business. He has a reputation for being a cruel businessman because of the way he makes forced takeovers of companies with problems fixing them.

Warren Buffet: He is the most famous investor today. We could say that he is a celebrity among investors. He ranks third among the wealthiest men on the planet. At the age of 32, Warren Buffet was already a millionaire. He is partially the owner of some of the most important companies on the planet such as Coca Cola Company, Kraft, Heinz or Glaxo. He likes to invest in consolidated companies with great competitive advantages whose shares are down due to a specific problem.

The keys of the most famous investor.

We already know that Warren Buffett is the most famous investor today. That is why we will give you some of his tips for those who want to start investing to achieve financial freedom are the following:

• Avoid unnecessary debt: Ask for the minimum money borrowed and always pay attention to interest rates. Whether in your personal life or for your business this will keep you out of trouble. Loans can be addictive
• Lead an austere life: Minimizing expenses generates opportunities for savings and investment. Don’t give so much importance to comforts or luxury.
• Don’t invest in what you don’t understand: Don’t invest if you can’t understand and explain where the profits come from. Knowing why you will produce profits is key to avoiding scams.
• Think long-term: When investing what counts is the long-term trend. You can’t be at the expense of the daily ups and downs of your investments.
• Pessimism is your friend, and euphoria your enemy: Caution will keep your money safe. Then it’s just a matter of investing insurance and time.
• You can’t do a good deal with a bad person: Choose people better than you. Ethics is fundamental to maintaining the win-win mentality.
• You should always be prepared for the worst: You should have a plan of action in case of a crisis. We can’t wait for the crisis to appear. You just must anticipate what to do if it happens and be prepared.
• No Safe Business: Today’s safe businesses may be your undoing tomorrow. You must be attentive to the changing signs of the environment.
• Reinvest profits: Only in this way capital will grow. This is the difference between real investors and those who want quick profits.

7 Keys to Avoid Personal Financial Ruin – Cebrities Invest

Whether you are a famous person or an ordinary person, there are keys that apply to all of us. Some may have more slack to achieve their financial goals, but there are secrets we all need to share. If you follow these tips, you will have money to invest and perhaps you can share shares in which celebrities invest. So here are the 10 keys to avoid a financial catastrophe:

1. Always try to save:

Unless you’re in a situation where you can’t afford your food or your roof, you can always save. Sometimes saving means buying a cheaper brand that doesn’t sacrifice quality. Sometimes it means buying in times of savings like Black Friday or Cibermonday.

2. Your income must be greater than your expenses:

You must ensure that your economic income is greater than your expenses. To do this, you can choose to increase your income or reduce your expenses.

3. Separate your regular budget from your tastes and entertainment:

If you enjoy cinema, you should know that it is not something indispensable. You need to distract yourself, but there are many ways to do it. Separate your needs from your tastes. In this way you will become aware when an expense is indispensable and when it is not.

4. If you’re going to buy something, don’t buy it the first time you see it:

This is a key to avoiding impulse purchases. On many occasions we decide to buy something we like, and with the passing of the days we regret it. Either because it was something we didn’t need or because we know we’re not going to use it. Therefore, I invite you to postpone as many non-essential purchases as possible. With this they can have time to consider their cold purchase and give their money a second chance.

5. Reduce ant expenses:

Those small expenses that we make with such a high frequency that it ends up weighing on our budget. Here we can include coffee and street food, sweets, liquor and cigarettes. These are usually our ant expenses. We see that they are small, but by accumulation they end up being larger than expected in our budget.

6. Make a monthly budget:

On many occasions we do not make a budget of expenses. This means that we have no control of our expenses on a day-to-day basis. If we do not know how much we spend we do not know where we can decrease our expenses or if we should increase our income.

7. Set money away from savings from the beginning:

There are people who leave for after all expenses the savings. The recommendation is that they set aside the savings planned at the beginning and leave the money from all expenses in your account. This ensures that they save. If they have money left after the expenses, they can incorporate it into savings. If they have no money left and have to appeal to savings, then they will have to check what happened… But thanks to setting aside the savings, the money is there to fix.

Follow the advice of Gustavo Mirabal and you will achieve financial success soon, if you are constant. We wish you success and then you can tell us how you did.