Five surprising investments by millionaires and billionaires
You might look to 50 Cent for music tips or Barack Obama for inspiration. But would you turn to these rich and famous folks for financial advice?
Not only do many of your favourite celebs invest in the stock market, but they also make some surprising choices when deciding where their money goes. While some of those investments pay off, others leave these rich folks’ wallets a few dollars lighter.
Here are some surprising investments made by millionaires and billionaires, along with details on why they ponied up their cash.
ASHTON KUTCHER: CASPER
Net worth: US$200 Million
Actor Ashton Kutcher is famous for his role on CBS’ “Two and a Half Men,” and he has also gained quite a reputation as an investor. According to Entrepreneur, a number of startups have emerged in the mattress industry, and Kutcher jumped on board the trend with an investment in Casper, a bed-in-a-box company.
Casper launched in 2014 with a strategy to control costs and drive profit by selling from its website. That meant no brick-and-mortar overhead and no salesperson salaries. In just over a year, the company sold more than 50,000 mattresses. Sales in 2015 reached US$100 million, and the company was on track to make twice that sum in 2016, according to an article from CNN Money. Today, the company sells pillows, sheets, duvets and dog beds in addition to its trademark mattresses.
Although it’s not odd for an investor to jump on a hot opportunity, Kutcher’s track record classifies him as a tech investor. Investing in home furnishings is an entirely different ballgame.