Posted at 16:39 ET on July 11, 2019
Shaquille O 'neal (Photo: ETIENNE LAURENT, EPA-EFE)
Since retiring from his 19-year career in basketball in 2011, Shaquille O'Neal has enjoyed so much success outside the court:
It was one first investor in Google and has since made an impressive portfolio, including investments in Apple, a 24-hour fitness center and nightclubs in Las Vegas. He also owns 17 Auntie Anne's, a Krispy Kreme franchise and a Big Chicken restaurant in Las Vegas.
In terms of investment, the former star of the NBA is inspired by the founder and CEO of Amazon: "I heard Jeff Bezos say once [that] he makes his investments to change people's lives, "O'Neal told The Wall Street Journal in a recent interview. "Once I started using this strategy, I think I've quadrupled what I'm worth."
This helps him decide on opportunities and opportunities. "If something happens on my desk and I do not believe it, I do not even look at it," O'Neal said, although the result seems excellent. In fact, he rarely focuses on numbers: "Every time I do business, it's not a question of money."
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As he said last year to Bob Pisani of CNBC, "I never say," If I invested in this project in five years, we could sell it. Whenever I have had this model, it has always been a failure. "
He is not the only investor to stay true to his knowledge and trust. "Make sure you invest in projects you believe in, rather than those that others believe in," said Rohan Mahadevan, Senior Vice President, Global Markets, PayPal, CNBC Make It. He recommends testing a product or service before investing in order to better understand the operation of the company.
O'Neal also prefers to work with companies he loves personally. Of all his investments, Krispy Kreme is his favorite, he told the WSJ: "Because I like donuts. … Krispy Kreme is a fabulous donut. I discovered him at university and I have loved him ever since. "
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That said, you do not necessarily want to invest in something just because you like it. According to legendary investor Warren Buffett, you want to make sure that you really understand the company: "What an investor needs is the ability to correctly evaluate the selected companies. Note that the word "selected": you do not have to be an expert of all companies, nor even many. All you need to do is evaluate the companies in your circle of competencies.
"The size of this circle is not very important; It is vital to know your limits.
In simple terms, when it comes to investing, Buffett says to stick to what you know. "Defining what your game is – where you're going to have an edge – is extremely important."
Once you've done this, buy and hold, he adds, "If you do not want to hold an action for 10 years, do not even think about owning it for 10 minutes."
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