In this video, we’ll look at five celebrities who have reportedly lost significant amounts of money in the stock market. Investing in stocks can be a great way to grow your wealth over time, but it also comes with risks. While some people have made fortunes in the stock market, others have lost significant money. Even celebrities with access to financial advisors and expert advice are not immune to the risks of investing in stocks.
Their stories serve as a reminder that investing in stocks can be both rewarding and risky and that it’s important to research and make informed decisions before investing your hard-earned money.
Curtis “50 Cent” Jackson, a former rapper and actor, once ranked as the second richest rapper in the hip-hop industry after Jay-Z, with a net worth of $155 million after tax in 2015. However, legal battles, a failing music career, and poor business investments have caused a massive downfall of his fortune, leaving him bankrupt with a debt of $32.5 million.
Despite being shot nine times and nearly dying, Jackson rose from this traumatic event to become an iconic hip-hop star with hit songs like “Candy Shop” and “In Da Club,” as well as a businessman who invested in a range of sectors, such as real estate, financial markets, mining, vodka, fragrances, consumer electronics, fashion, and more. His investment in Glacéau VitaminWater was a turning point in his career, earning him $100 million from Coca-Cola’s purchase of the company for $4.1 billion in 2007.
Furthermore, he also founded two film production companies, G-Unit Films and Cheetah Vision, and signed a giant $78 million deal with FRIGO Revolution Wear, a luxury underwear brand, in 2014. 50 Cent was also known for promoting stocks. In 2011 Rapper 50 Cent tweeted about a little-known penny stock called H&H Imports that he owns 12.9% of.
The tweets sent the share price soaring 270% in a matter of hours, but the company’s financials are not impressive. H&H had only sold $457,231 worth of goods in six months but lost $2.4 million during the period. Its “risk factors” section in the prospectus raises several red flags, including not being profitable, having inexperienced management, and facing the possibility of being unable to stay in business. But after deleting his initial tweets promoting H&H Imports, the rapper 50 Cent later tweeted a cautionary message, suggesting that his previous tweets were his opinion and that investors should speak to a financial advisor and do their own research. It is currently unclear if 50 Cent violated any SEC regulations, as the SEC has not confirmed if or when an investigation occurred.
H&H Imports however went bust in 2015 with the rapper losing $4.4 million according to some sources.
Mark Cuban, the entrepreneur, and investor known for his appearances on Shark Tank, has admitted to suffering losses in his portfolio of 85 startups he invested in through the show. While he is down on his investments on a cash basis, he argues that private valuations of operating companies, which are the majority of his portfolio, should also be taken into account. He also explains that sometimes his investments are motivated by the desire to send a message or to help someone, not necessarily by the lure of gain. Cuban has invested an average of $233,529 in exchange for an average participation of 23% in the capital of the companies in question.
Mark Cuban has compared the current stock market to the dot-com bubble of the 1990s. He warns that a boom in day trading could cause an overvaluation of prices that may lead to a crash. Cuban’s warning could also apply to cryptocurrency investors, as the mid-March stock market crash caused the price of Bitcoin to drop by 40% in just a few days. Despite his skepticism towards Bitcoin, Cuban is known for correctly predicting the dot-com bubble’s crash in the 1990s. He famously saw the crash coming and protected most of his $1.4 billion fortune in Yahoo stock by working with Goldman Sachs to craft a “collar” trade, where he bought put options to protect his downside and sold call options to offset the cost of the puts. In a recent Real Vision interview, Cuban said his hedge worked out perfectly and warned that a similar crash could happen again.
Mark Cuban has been open about his stock market losses, particularly from startup equities, although he hasn’t clearly stated how much he has lost from stock trading.
Mike Tyson, who earned over $300 million in his boxing career, faced financial troubles due to various reasons. His marriages, multiple children, and lavish lifestyle, including owning pet tigers, purchasing properties, and an entourage of employees, led to enormous expenses. He spent $6.3 million on cars alone and bought a $4 million estate in Connecticut. For his 30th birthday party, Tyson extended invitations to 700 individuals at a cost of $580,000. Notably, the guest list included Donald Trump, who had previously aided in promoting some of Tyson’s fights.
Furthermore, his legal issues, including the rape case, drained millions of dollars from his accounts. By 2004, Tyson had accumulated over $38.4 million in debt and filed for bankruptcy. Though he has since shown signs of managing his finances better, his extravagant spending led to his financial downfall.
Among his bad investment was a $5.6 million loss in a tech company in 2005.
Recently however Mike Tyson’s venture into business and stocks, through his cannabis company is proving to be successful. Mike Tyson’s cannabis brand, Tyson 2.0, has raised $9 million in a Series A funding round led by JW Asset Management, with participation from K2, Ambria Capital, Tress Capital, and Patrick Carroll. The funds will be used to develop additional celebrity intellectual property, expand marketing and distribution efforts, and support investments in the progression of Tyson 2.0’s house of brands strategy. Tyson 2.0 has quickly become a favorite among consumers, selling more than 4,000 pounds of cannabis flower across North America.
Once a top earner in Hollywood, Nicolas Cage was worth a staggering $150 million during his heyday. However, he only briefly held on to his wealth, as he blew it all on a series of extravagant and eccentric purchases. These purchases include 15 residences, two castles, a deserted island, a Lamborghini, a burial tomb, shrunken pygmy heads, and even a pet octopus. Most of his investments were lost related to real estate, with stock investment losses holding on to the second position.
Cage’s spending habits led him to face foreclosure on several properties and owe the IRS $6.3 million in property taxes. He is now worth only $25 million and has taken up as many roles as possible to pay off his debts.
One of Cage’s more interesting purchases was the infamous LaLaurie mansion in New Orleans, one of America’s most haunted houses. He also purchased a $25 million waterfront home in Newport Beach, California, a $15.7 million countryside estate in Newport, Rhode Island, and an $8.5 million abode in Las Vegas. Overall the actor reportedly lost millions of dollars in the stock market, including $3 million on a failed real estate investment trust in 2009.
Cage spent $3.4 million to purchase the LaLaurie mansion and $3 million to buy a deserted island in the Bahamas. He also splurged on a nine-foot-tall burial tomb and shrunken pygmy heads. Cage spent $150,000 on a pet octopus and another $150,000 on the first Superman comic.
Cage outbid fellow actor Leonardo DiCaprio in one incident for a 70-million-year-old dinosaur skull. However, the $276,000 artifact was stolen, and Cage had to return it to the Mongolian government.
Despite extravagant spending, Cage’s net worth has plummeted to $25 million. The actor currently takes up as many roles as possible to pay off his debts and maintain his lifestyle. Cage’s lavish purchases may have caused him financial trouble, but they also fascinate fans and onlookers.
Shaquille O’Neal, a former NBA superstar, and current analyst, is known for his love of technology stocks. O’Neal has invested in companies like Google, Apple, and Microsoft, and has even endorsed products for technology companies like Lenovo. He believes that technology is the future, and has spoken publicly about the importance of investing in the industry.
The NBA legend reportedly lost over $20 million in the stock market during the financial crisis 2008, including investments in real estate and technology companies. This, however, hasn’t brought the returns of stock investments on a negative side.
Shaq began building his investment portfolio early in his career, investing in companies like Vitaminwater and Ring and acquiring pieces of multi-billion-dollar companies like Google and Lyft long before they went public. He also pioneered a blueprint for athletes to create generational wealth, something that was previously only reserved for team owners.
One of Shaq’s most successful investments was in Google. After being introduced to fellow Google investor Ron Conway by his agent, Shaq invested in the company before it went public, resulting in a significant return on his investment. Within a decade, a $1 investment had turned into $15.
Shaq continued to invest in companies over the years and became a serial endorser-owner, appearing in commercials for companies such as Lyft, Ring, and Vitaminwater. His past law enforcement contacts also proved valuable when Ring founder Jamie Siminoff sought local subsidies to deploy his product as a crime-stopping tool.
Ring eventually gained the attention of Amazon, and after working together on several products, Amazon acquired Ring for more than $1 billion. This deal boosted Shaq’s fortune, estimated to be hundreds of millions. While he won’t reveal the exact amount of his net worth, Shaq has confirmed that his best years in the venture capital world now rival his playing career.
Shaq’s success in the investment world inspires many athletes and individuals looking to build their wealth.
Curtis “50 Cent” Jackson’s rollercoaster journey from immense wealth to bankruptcy highlights the need for caution and research before investing in stocks. Mark Cuban, known for his successful investments and appearances on Shark Tank, has also faced losses in his portfolio of startups, emphasizing the need to consider both gains and losses in investments.
Mike Tyson’s extravagant lifestyle and legal troubles led to financial difficulties, but his recent success in the cannabis industry shows that fortunes can change. Nicolas Cage’s excessive spending and eccentric purchases led to financial downfall and a shift in his net worth. Shaquille O’Neal’s love for technology stocks and strategic investments have brought him significant returns, showcasing the potential for success in the stock market.
The stories of celebrities who have experienced significant losses serve as a reminder of the potential pitfalls and the importance of making informed decisions. These stories collectively emphasize the importance of careful consideration, diversification, and informed decision-making when investing in stocks.