Celebrities aren’t just some of the wealthier individuals around; they also live much of their lives in the public eye. How these individuals choose to use their money is always a topic of great interest, and you are likely to see a lot of news articles when a celebrity makes a major investment in property or other areas publicly. With the increase in cryptocurrency and stock market investment options, you can expect to hear more and more about celebrities making major moves in their investment options.
Top Investment Options for Celebrities
There are so many places to invest your hard-earned money, and when you have millions of dollars to spend, you have so many more options. Celebrities just don’t use their wealth to enjoy themselves and go on incredible vacations, many of them also put it to good use in a number of investments.
The reason for investing is the same, whether you are an average working person or an extremely wealthy celebrity. Investing is a way to make your money work for you and yield some kind of financial return, be it through dividends or capital gains over time.
Many celebrities work with financial advisors to help them manage their wealth. It’s not uncommon to hear about celebrities filing for bankruptcy or dying with very little to their name, so the different investment vehicles touched on here are just some of the ways these famous people aim to protect themselves and their wealth.
Here are some examples:
- Property- This is one of the oldest investment options that celebrities have drifted towards. It is made easier by the fact that these famous people can buy their property investments for cash.
- Stock market- Many celebrities invest in the stock market and are often some of the earliest backers in many companies. If you trace the shareholding of some of the top tech companies today, you are likely to find out about celebrities who believed in them long before everyone else caught on.
- Cryptocurrency- Bitcoin and cryptocurrencies are another way that many celebrities are starting to invest their money. This market has seen incredible potential in recent years, but that also comes with higher volatility.
- Angel investments- Celebrities can also be angel investors by providing capital for business start-ups in exchange for debt or equity.
Media Buzz and Celebrity Endorsements
Celebrities are social influencers with massive following, tribes, and publicity. These individuals are famous in different industries, including entertainment, sport, and business, and they can make a tremendous impact in their particular spheres of influence. Whenever a celebrity goes public about what they are investing in or backing, there’s bound to be a lot of media buzz about this. In this way, these influences can impact public opinion and spending habits.
A celebrity endorsement can have a lot of weight and bring attention and media coverage to a company in its early stages. Many brands have hit the jackpot when a celebrity has picked up on what they were doing and given the thumbs up or made a capital investment into the company. Many companies have capitalized on this method of growing their brands.
Celebrity Early-Stage Investors
Many celebrities are serial investors in early-stage companies and start-ups. Once a celebrity has identified with a company’s mission, it is easier for them to back the brand and even become a brand ambassador in addition to an angel investor. With so much wealth to their names, most celebrities are far less risk-averse than the average individual. This means they are more willing to play the long-term game and not look for an immediate return on their cash injection.
When it comes to newer investment options such as cryptocurrencies, the risk aversion of many multi-millionaires also makes them among the earliest adaptors. In recent years, there have been more and more celebrities trying the luck at Bitcoin and other crypto coins. With a greater proportion of the population still very skeptical and unsure about the prospects of these digital currencies, celebrity investments can send waves and change many people’s perceptions.
We have covered many celebrities and their investments to give you the full scoop on where your favorite famous individuals are putting their money. Very often, a lot of the information about celebrity investments is fake news, so we look into what’s real and what is fabricated.