Celebrity Investors: How the rich and famous use their money

One of the perks of being a celebrity is that, more often than not, it’s a well-paid gig. Think of anyone famous and they’ve invariably got more spare cash than the average person. Be that as it may, the cost of living for someone in the spotlight is also greater than it is for the average person. Look at Sir Elton John. The English rocker is well into his seventies but he’s still touring. Why? Because his cost of living is astronomical. Back in 2000, High Court Documents revealed that John spent £40 million in a 20-month period. £293,000 of that was on flowers alone!

So, while money can be easy to come by for celebrities, it’s also easy to spend. That’s why the likes of Elton John are always looking to speculate in order to accumulate. They do this in a variety of ways, including endorsements and promotional work. However, one thing that celebs with spare cash also do is invest. What do they invest in? Well, it all depends on who advises them and their interests. However, some of the main ways celebrities try to increase their wealth through investments are:

Their professions and hobbies

A lot of celebrities put money back into the industry that made them or, if not, their hobbies. David Beckham is a perfect example of this. The former soccer star spotted an investment opportunity in Major League Soccer (MLS). The US league is still small by European standards, but it’s growing in prominence.

Beckham put some of his money into the MLS franchise, Inter Miami FC. Along with brother Jorge and Jose Mas, Beckham took full control of the club in 2021. With MLS revenue hitting $1 billion in 2021 and growth on the horizon, Beckham’s franchise could become a highly profitable investment.

Stocks and shares

Celebrities often use brokers to handle their stocks and shares. However, with modern technology, that’s no longer necessary. Anyone, from the average person in the street to Elton John, can download an app and buy stocks and shares. In fact, with the right online brokerage, it’s possible to buy stocks in companies anywhere in the world.

That means someone in the UK can download an app, create an account, and start trading US shares from companies listed on NASDAQ and the New York Stock Exchange (NYSE). We know that rapper Jay-Z is a keen investor. He bought $2 million worth of shares in Uber before it was listed on the NYSE. Fast-forward a few years and his investment was worth $70 million. The only thing that would have made it better is if he’d have saved time by using an investment app.

Products and merchandise

Products are another favorite investment vehicle for the rich and famous. Many of the world’s top celebrities invest in merchandise, but others go beyond that. For example, when Dr. Dre invested in Beats, it made him a multi-millionaire when the headphone company went global. For something a little different, Simply Red frontman Mick Hucknall put some of his money into wine.

The singer now owns a string of vineyards that produce high-quality bottles of wine. Although these investments aren’t the same as playing the stock market, the end goal is always the same: to make money. No investment is ever guaranteed. Even celebrities lose money on investments. However, if you want to make your money work for you, there are lessons to be learned from celebrity investors.