HOLLYWOOD - DECEMBER 04:  Actor Will Ferrell  arrives at the premiere of Paramount Vantage's "The Kite Runner"  December 4, 2007 at the Egyptian Theatre in Hollywood, California.  (Photo by Frazer Harrison/Getty Images) *** Local Caption *** Will Ferrell

Celebrities have a bit of a bad reputation these days. When someone makes $20 million a year and posts pictures on social media everyday of an awesome party from the night before, it’s hard to relate. These five celebrities, though, have used their fame and their money to invest successfully instead of spending it on looking good.

Ashton Kutcher – Actor Ashton Kutcher is one of the most successful celebrity investors. After his big break on “That 70’s Show,” coupled with a few movies and his reality TV show “Punk’d,” Kutcher entered the private equity market with his own firm A-Grade Investments.

Kutcher’s list of investments is long and includes companies such as Airbnb, Duolingo, FourSquare and Skype, which has since been sold to Microsoft Corp. Seeing as his investments are in the fickle tech industry, Kutcher will need to wait a few more years before finding out if his 40-plus investments will go boom or bust.

Will Ferrell – Comedian Will Ferrell might not seem like your typical investor. Best known for his comic roles in “Saturday Night Live,” “Elf” and “Anchorman,” Ferrell created Funny Or Die, a comedy site that shows videos of celebrity-contributed content. The site has won an Emmy award and an internal memo says that while, the site is not for sale, the founders are looking to find out what it’s worth. Current estimates value the website at $100 to 300 million.

Magic Johnson – Former NBA player Magic Johnson has done a lot in the 20-odd years since he quit basketball. He was given excellent advice in his basketball days to learn about business and immediately started putting that knowledge to the test. Johnson’s holding company, Magic Johnson Enterprises is a conglomerate that owns movie theatres, restaurants and health clubs along with stakes in real estate firms, French corporation Sodexo, life insurance companies and a couple of multimillion-dollar sports teams.

Johnson’s company isn’t only about profit; he also focuses on building communities.

Bono – Bono, the lead singer of the Irish music group U2, is another celebrity who is involved with the private equity business. As founder of Elevation Partners, Bono is part owner of a firm that has almost $2 billion in assets. In addition, Bono co-owns The Clarence, a 50-room hotel in Dublin.

Elevation Partners currently holds equity in Facebook Inc. and Yelp Inc. It is a former co-owner of Palm Inc., which Hewlett-Packard Co. acquired in 2010, as well as an Investor in Forbes Media from 2006 to 2014.

The Bottom Line

These celebrities have proven that money-making opportunities abound even after your main career has slowed down. While these celebrities are still popular and talented enough to be spokespeople or actors, they have found ways to diversify their income beyond the Hollywood rat race. Let me know if I can help you diversify your income, call me today!

 

The information in this blog is for general information only and should not be taken as constituting professional advice from the blog or website owner.

Source: Vanessa Page for Investopedia.