Sports legend Michael Jordan may have amassed a fortune during his athletic years, but his savvy investment strategy keeps him busy in the post-game years.
Many celebrities have made headlines for their tendency to invest and follow market trends, but it is also well known that many celebrities are drawn to the finer things in life like expensive jewelry and flashy cars. .
For Michael Jordan, there is no need to separate the two. He has a penchant for luxury watches, and this passion has guided his investment strategy. He is not alone and many other famous athletes take the same path.
WatchBox is a secondary market for luxury watches
In 2017, a company called WatchBox was founded near Philadelphia. The company’s operating plan is to provide a secondary market for the buying, selling and trading of luxury watches. Like CNBC reports, âRather than serving as a marketplace for peer-to-peer transactions, the company buys and trades luxury watches from sellers. It then authenticates the products and resells them to collectors and other buyers, capturing transaction fees in the process. ”
Company CEO Justin Reis explained that it is “no different from dealing with Goldman Sachs.” Much of the company’s value to its customers lies not so much in the ability to trade bracelets, as it is in having access to knowledgeable advisors who can help them skillfully manage a portfolio of watches that serve as a strategy for the watch. long-term investment.
Rarity has made luxury watches particularly valuable at the moment, and many luxury items retain their value in a way that collects enthusiasts. The used watch market saw a trade of $ 18 billion in 2019 and is expected to reach $ 32 billion by 2025.
Michael Jordan eagerly invested in WatchBox
Since its launch in 2017, WatchBox has seen high profile investors. Among them is Michael Jordan, who has a well-documented passion for a lavish lifestyle that includes luxury watches. WatchBox recently announced that it raised $ 165 million in its most recent fundraising round, and this is largely due to investments from many famous athletes.
Jordan, whose investments include owning the Charlotte Hornets, is probably the flashiest name on the list, but he’s definitely not the only one. Others include former NFL player Michael Strahan, as well as Giannis Antetokounmpo of Milwaukee Bucks and Bucks owner Marc Lasry. Since the Phoenix Suns, WatchBox has garnered interest – and dollar investments – from Chris Paul and Devin Booker.
Although the company has yet to go public and does not have an official valuation amount, CNBC sources report that it is “approaching $ 1 billion.” These financially savvy athletes should see a big payoff if the business reaches its full potential.
Other financial investments punctuate the portfolios of these athletes
Of course, none of these athletes put all of their eggs in one basket. They all make a range of investments, and some is definitely better than the others. Jordan’s foray into real estate, for example, left him with a mansion that hasn’t garnered much market interest.
It is the diversification of their portfolios that allows these athletes to get through the bad breaks and always come out on top. Chris Paul, for example, also made headline-grabbing investments in media management software company Greenfly, like Deadline reports.
Lasry’s stake in the Bucks is only a small part of his larger portfolio, and he founded Avenue Capital Management with his sister. The company, according to Forbes, manages approximately $ 10 billion in assets.
While luxury watches are certainly a flashy way for these famous athletes to grow their fortunes even more, their overall investment strategies are all about variety. Only time will tell which investments will pay off in the long run.
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