The three things your favorite celebrities look for in a big investment

There is sometimes a misconception that celebrities are constantly paying money for expensive things, big houses, yachts, expensive drinks and parties. In fact, some of America’s most brilliant investors are Hollywood celebrities. For many celebrities, the smart investments they’ve made give them the resources to finance the luxuries we often crave.

The most famous celebrity 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 stakes in Ciroc Vodka, DeLeón Tequila , Sean John and The Revolt TV Network. bringing it very close to the $1 billion valuation.

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

According to prominent investor and fund manager Sami Rusani, “Investments are the most common use of large liquidity,” Rusani further explains his position; “Celebrities are one of the classes in America who are paid large sums of money for their work. This disposes them to large profits through investments or squandering through rampant spending. However, we are constantly seeing many celebrities choose the former, but even then, great care is still required in making investment decisions, or it may still end up as a loss.”

What celebrities care about

In 2006, Dr. Dre took his love of good headphones to market and co-founded Beats Electronics, a company that Apple
AAPL
acquired 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 mark.

Aston Kutcher’s A-Grade Investment Company was launched in 2010 and since then he has invested in unicorns like Spotify, Uber
UBER
, Skype and Airbnb, to name a few. A-Grade’s savvy investments turned their $30 million seed fund into a $250 million+ portfolio in just a few years.

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

Familiarity and passion

“It’s bad business to invest in anything you don’t know, don’t have a passion for or don’t know,” explains Rusani, “In my role as a fund manager and investor, I’ve personally noticed that the best investments are made in the industry. that the investor understands and can predict. This principle has guided me in building my portfolio of over 25 investments and facilitating my three exits to date.”

A cursory look at most of the investments that celebrities make, from the headphones of Dr. Dre to CBD companies from Snoop Dogg, will reveal one thing; Celebrities seek a safe space, a market they understand or have a passion for, and an industry they can profitably contribute to.

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 try all kinds of them—you probably know which ones are the best, and my advice is always to invest in what you know…do the necessary investigation to know if it is something that will have ultimate value”.

Futuristic Adaptation

To explain how a futuristic adaptation is helping celebrities make investment decisions, Rusani asks a vital question; “What will the future look like?” Since the beginning, thinkers, clerics and philosophers have tried to answer this question, but to no avail.” Mr. Rusani further explains, “They have failed to predict the future, because the future is not set in stone. Innovators and inventors have come closest to predicting the future because their innovations effectively shape the future of humanity and how we relate to the earth. Some of the smartest investors are those who watch for innovations that aim to define the future of humanity and get in early.”

Along with many celebrities like 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 importance of cryptocurrency has made him it maintains a strong interest in the industry, helping to raise over $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 only a matter of time until everyone in Hollywood and beyond gets involved, maybe we’ll see tokenization of movies and how artists are paid in movies, music and art. I see a future where crypto, NFT and blockchain will be the norm, not the exception.”

While the crypto space has taken a few hits in recent times, it should be noted that the optimism of these celebrities may yet materialize in the long run.

The need for a disruptive or futuristic trend in investment has led celebrities to invest in a variety of technology companies, from streaming services to fintech companies. Everyone wants to help shape the future, and celebrities are constantly voting with their dollars.

Social influence

“I pride myself on being an impact-driven investor,” says Rusani, “Positive change is my thing, and that desire has led me to keep some sustainability-focused investments in my portfolio. In the investment realm, social impact has become a of the most important metrics when deciding to invest.Celebrities are concerned about social impact investing, not only 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 create a better world.”

Celebrities are perhaps the most influential influencers of human behavior. With social engineering happening through movies and their art, it’s refreshing that many big players in Hollywood have taken a positive stance on social impact and sustainability.

Titanic star, Leonardo DiCaprio, has built a history of investing in various small businesses focused on the environment. Drake invested in and partnered with an environmentally conscious fintech company, Aspiration, which has taken on the responsibility of calculating Drake’s environmental impact. Beyonce also holds a stake in vegan beverage company WTRMLN
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WTR, which limits food waste by turning watermelons marked for disposal into delicious watermelon water. At the same time, billionaire talk show host Oprah has made a name for herself through her humanitarian investments around the world.

According to the latest IFC report, the global market for impact investing shows that $2.3 trillion was being invested in 2020, of which $636 billion clearly had an impact management system in place. These numbers suggest that impact investing is no longer in its infancy and is proving a healthy investment choice. With the Covid-19 pandemic, the industry has grown even more as more celebrities and entrepreneurs commit more dollars to help solve critical problems.

Having worked with some of the most prominent investors in various industries and helped raise over $250 million in funding for other companies in the past four years, Rusani believes that these three factors are the most crucial factors that drive character investment strategies famous and every modern man. main investor of the day.

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