How do famous people invest?

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tvubpwcisla
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How do famous people invest?

Post by tvubpwcisla »

Are famous people Bogleheads and if not, how do they invest their millions?

:?
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Jack FFR1846
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Re: How do famous people invest?

Post by Jack FFR1846 »

Poorly.

Famously poorly.
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livesoft
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Re: How do famous people invest?

Post by livesoft »

Some tax returns of politicians are published. Those returns show many of them are Vanguard and TIAA clients. Many are not.

Not all famous people have millions to invest.

I think this thread will quietly disappear.
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TomatoTomahto
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Re: How do famous people invest?

Post by TomatoTomahto »

Famous for what? Famous for being famous? Or famous for being smart? Or famous for dribbling a ball and throwing it at a hoop?

How long is a string?
Okay, I get it; I won't be political or controversial. The Earth is flat.
tiburblium
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Re: How do famous people invest?

Post by tiburblium »

I saw this documentary on Netflix a few years ago, seemed like a good sampling:

http://www.espn.com/30for30/film/_/page/broke
Last edited by tiburblium on Wed Apr 01, 2020 8:21 pm, edited 1 time in total.
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celia
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Re: How do famous people invest?

Post by celia »

My guess is that they often have their own personal/ business manager who could also be a relative (like child actors used to have). It is likely hit or miss on how well the manager does as some people who were famous a long time ago are now broke. I’ve read that one problem their tax preparer/ advisor has is that the famous person doesn’t listen to them. Since they are wealthy, they may think they can buy anything they want anytime they want. Then they may be stuck with this mentality when their resources are not as plentiful later on.
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ResearchMed
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Re: How do famous people invest?

Post by ResearchMed »

tvubpwcisla wrote: Wed Apr 01, 2020 8:11 pm Are famous people Bogleheads and if not, how do they invest their millions?

:?
Famous? or Very Wealthy?
Those aren't necessarily the same thing.

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Normchad
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Re: How do famous people invest?

Post by Normchad »

Jack Bogel is pretty famous.

But given some of the things he’s said about active management and international exposure, I’m not sure he’d qualify as a Bogelhead.

Howeber, while watching many seasons of MTV Cribs, I have been impressed at how well some famous people seem to have done for themselves. I was really surprised by some actors and musicians that don’t seem to have done much popular since the 70s.
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Re: How do famous people invest?

Post by 3-20Characters »

Larry David is both famous and rich. In “Curb,” he has invested in a restaurant, a “spite” coffee shop to drive Mocha Joe out of business (so not interested in profit there), and an invention (a periscope in the car so that the you can look down the road and see what’s going on with traffic). I think he also co-produced a “fatwa” play, and probably made other investments I’ve forgotten. There’s been no mention of low ER index funds that I recall.

Other fun $ facts: he bought top of the line BMW to prove he was actually car shopping instead of his actual purpose (get free Bavarian licorice at dealer).
EZ James
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Re: How do famous people invest?

Post by EZ James »

Ben Bernanke listed Windsor or Windsor II, and possibly other Vanguard funds in his financial disclosure IIRC. His listed NW was around 2M at the time. That was before he was appointed to guru status.
mega317
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Re: How do famous people invest?

Post by mega317 »

There is a professional punter who preaches indexing and from what I remember the rest of the league and the sports media treat him like he's a huge nerd.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Small Savanna
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Re: How do famous people invest?

Post by Small Savanna »

Some celebrities have started their own companies, mostly investing in the industries that they work in. Oprah and Merv Griffin come to mind. Both talk show hosts who became media moguls. Merv's net worth when he passed away was about $1B, and Oprah's is over $2B.
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yangtui
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Re: How do famous people invest?

Post by yangtui »

In a previous life I worked for a boutique CPA firm that had lots of interesting clients. Probably 60% of the returns I prepared were for household name families. A lot of them put their money into weird alternative investments that didn't seem to make much sense from an investment perspective. I do not remember ever seeing a Vanguard brokerage statement. It didn't matter though. These people made so much from their day jobs that they could burn 7-figures in a giant backyard bonfire and it wouldn't make a difference. Either they owned massive companies or their name was a brand worth 100s of millions.
rich126
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Re: How do famous people invest?

Post by rich126 »

Some were incredibly successful and others not so good and more than a few were taken by their FAs.

Supposedly people like Diddy, Degeneres, clooney, alba. From house flipping to vodka.
https://money.com/celebrities-best-inve ... decisions/

I think lucy and desi were smart to retain rights to their show and have their own successful production company. And the Olsen twins with cosmetics.
mbasherp
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Re: How do famous people invest?

Post by mbasherp »

I’ve known a lot of famous people.

Many of them invest poorly, either by fault of their own or their investment advisors and business managers.

High income is not wealth, and I also don’t desire to be famous.
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asset_chaos
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Re: How do famous people invest?

Post by asset_chaos »

Norma Desmond in Sunset Boulevard had oil wells in Bakersfield, pumping, pumping, pumping. I'm not sure if California oil wells (the pretend investment of a pretend actress) continue to pump out royalties.
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David Jay
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Re: How do famous people invest?

Post by David Jay »

There’s the old joke: How do you make a small fortune? Start with a large fortune and invest in [insert investment here]!
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valleyrock
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Re: How do famous people invest?

Post by valleyrock »

A number of famous people invested with Bernie Madoff. Oops.

A related question I've had is where the best financial advisors are, who ostensibly would be the advisors the famous would, or should, seek out. The best ones I suppose are very expensive, and probably many of the best ones get very rich and retire, making for scarcity.
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9-5 Suited
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Re: How do famous people invest?

Post by 9-5 Suited »

I’m guessing in aggregate they invest fairly similarly to the general public, with the exception of probably investing in more “vanity projects” like restaurants, bars, movies, fashion labels, etc.
phxjcc
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Re: How do famous people invest?

Post by phxjcc »

Famous?
Most have business managers/agents/lawyers and hangers-on that are constantly raking the chips away.
They can do this because the famous need to keep up with the being famous business.
Cite: the Rock Hudson estate papers, that some in my family had access to.

Mega-Rich
The have an accounting/investing machine to handle their money.
Cite: relative that worked for the Doheny family accounting company.
cableguy
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Re: How do famous people invest?

Post by cableguy »

I've worked for 2 billionaires. One made his fortune building a company from the ground up. Never cared about making a profit but cared about building value. It pained him to fire or layoff employees. He cared about the brand more than anything. At 85 years old he sold the company for many many billions. The other made his fortune by buying companies and gutting them. Cut costs, then cut them again, and again, refinanced debts, increase cash flows, and then buy back stock or pay dividends to reward himself and the few that owned the stock. The celebrities? I think invest in gyms, restaurants, clothing lines, and then when they realize that will make them broke, the smart ones invest like most people on this forum...
fwellimort
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Re: How do famous people invest?

Post by fwellimort »

If you work in Congress or have connections with government officials, through insider trading.
And for those who don't know, insider trading is more or less legal for those working in Congress.
It's pretty well known at this point with even NYT in 2004 admitting Senator's stocks beat the market by 12% a year
https://archive.nytimes.com/www.nytimes ... 1078796772
Apparently, moment you work for Congress/FED/SEC/whatever, you suddenly have better stock market returns than Warren Buffett.

If you are talking about everyday celebrities and sports athletes, very poorly. Many of them don't understand investing and get duped quite easily by 'money managers'.

If you are talking about people like Warren Buffett/Charlie Munger/Dalio, then generally mostly single stocks
Same with 'rich' people like Bezos/Gates/etc.

Everyone else... generally through indexing.
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Re: How do famous people invest?

Post by Alex Frakt »

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