10 Surprising Investments of Millionaires and Billionaires

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You might look to Madonna 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 favorite 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.

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1. Ashton Kutcher: Casper

Net Worth: $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 $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.

Related: Here’s Ashton Kutcher’s Net Worth and Rise to Multimillionaire

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2. Barack Obama: Smith & Wesson

Net Worth: $40 Million

Former President Obama is so passionate about ending gun violence that he cried during a 2016 announcement of an executive action related to gun control. Yet he is invested in gun and ammunition companies through the Illinois General Assembly’s pension plan, which he joined as a senator, Reuters reported. Obama’s net worth was $12.2 million when he left office this year.

Gun stocks have been a hot pick in recent years, and managed money has piled on the bandwagon. Gun manufacturer Smith & Wesson — one of the stocks Obama’s pension plan invested in — enjoyed net sales of $722.91 million in 2016, according to Statista. It was recently trading at $21 per share.

If you’re hoping to find a job with a pension plan, remember that you do not have control over where that money is invested. And that is true even if you are President of the United States.

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3. Curtis Jackson, aka 50 Cent: Gunnar Optiks

Net Worth: $15 Million

50 Cent gained fame as a rapper, but he has also made some savvy investments over the years. His deals include the $100 million he earned from his Vitaminwater investment and a project-development agreement with Starz.

Additionally, Jackson invested in a company called Gunnar Optiks, which makes protective glasses designed to reduce eye strain, a condition that affects people who stare at computer screens all day. Although 50 Cent did not disclose how much he invested, he has said he believes Gunnar has the potential to be a billion-dollar company. However, in 2015, the rapper filed for bankruptcy, suggesting that the company did not make him billions, at least.

It is common for celebrities to invest in fashion and accessories. But it’s less common to find a star focused on gear that addresses occupational health issues.

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4. John Kerry: ConocoPhillips

Net Worth: $194 Million

Former Secretary of State John Kerry is a vocal critic of fossil fuels and has warned of the economic and human costs they impose. He also said clean energy is the biggest economic opportunity the world has ever seen, according to a Huffington Post report.

For that reason, it is surprising that in 2015, Kerry and his wife, Teresa Heinz, disclosed trust investments in 94 companies that explore for, extract, store and transport oil, coal and other fossil fuels. Among them is ConocoPhillips, which was ordered to pay a group of aquaculture farmers $266,000 in 2015 for an oil spill off the coast of China in 2011.

Meanwhile, the couple was only invested in four companies involved in alternative renewable energy and energy-reduction efforts in 2016, according to The Daily Caller.

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5. Warren Buffett: Apple

Net Worth: $75 Billion

According to Fortune, Warren Buffett bought 72 million shares of Apple in January 2017. This is after his company Berkshire Hathaway revealed a $1.1 billion stake in Apple in 2016. The move isn’t too surprising, given that the company’s shares are up 25 percent year-to-date.

In general, Berkshire Hathaway tends to steer clear of technology stocks. Buffett has a long-standing rule of investing in things he can wrap his mind around, such as See’s Candies and insurance company Geico. Apparently, the Oracle of Omaha is getting technical.

Don’t Miss: Investing Mistakes Warren Buffett Regrets

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6. Calvin Broadus, aka Snoop Dogg: Robinhood

Net Worth: $135 Million

It’s probably not shocking that rapper Snoop Dogg launched his own brand of weed, or that he has a marijuana media business. But it is a bit more surprising that he invested in Robinhood, a company aiming to change how Wall Street operates.

The founders of Robinhood are on a mission to “democratize the American financial system” and close the gap between the “haves” and “have nots.” Their solution is a mobile app that allows users to trade stocks for free.

Snoop Dogg’s investment seems to have paid off. According to TechCrunch, Robinhood is now valued at $1.3 billion.

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7. Madonna: Vita Coco

Net Worth: $800 Million

Mega musician Madonna invested $1.5 million in Vita Coco in 2010, and her decision appears to have been a wise one. When she invested, the company reportedly had a 60 percent share of the coconut water market. At the time, the company was about to begin selling its products at nutrition retailer GNC. According to Bloomberg Markets, the coconut company is on track to hit $1 billion in sales this year after expanding into new product categories.

Some investors have complicated investment strategies. However, this investment is surprising because of Madonna’s simple selection process. The singer reportedly invested after drinking the coconut water every day while on tour.

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8. Dick Wolf: DigiPath

Net Worth: $350 Million

Dick Wolf is best known for creating the “Law & Order” series of shows. In 2014, the writer and producer invested $1.5 million in DigiPath, a Las Vegas company that provides marijuana testing and education services. The investment gave him the right to purchase DigiPath for 2 cents a share. Wolf would have invested more if not for an investment cap imposed by the company’s backer, financier David Weiner, according to the New York Post.

Weiner has a reputation for dicey penny stock deals, reported Bloomberg. When Wolf invested in DigiPath, the company was losing money. A day after Wolf’s investment, concerns about stock manipulation caused a halt to trading of GrowLife, another money-losing company Weiner backed.

Surprisingly, these details didn’t shake Wolf’s confidence. He did not appear too alarmed when DigiPath’s stock surged to $2.65, and then plunged to around 8 cents. Rather than sell, Wolf held on, according to the Post.

Currently, DigiPath is trading at around 20 cents a share. However, chief operating officer Todd Denkin believes that the recent passage of recreational cannabis use in Nevada will send the company stock skyrocketing.

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9. Peter Thiel: The Seasteading Institute

Net Worth: $2.2 Billion

PayPal co-founder Peter Thiel has made some savvy business moves, including an early $500,000 investment in Facebook that earned him more than $1 billion, according to CNN Money. But his investment in the Seasteading Institute has yet to pay off.

The Seasteading Institute’s goal was to build man-made floating cities in the ocean where people could escape from politics and government control. In a 2009 essay, Thiel wrote, “We may have reached the stage at which it is economically feasible, or where it soon will be feasible.”

While the institute secured a 2017 agreement with French Polynesia to create a seazone, a Guardian report from January revealed that some locals fear the project will just serve as a tax shelter for wealthy Americans.

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10. Jimmy Iovine: Mayvenn

Net Worth: $950 Million

Jimmy Iovine has built a fortune from music. The producer co-founded Interscope Records and Beats By Dr. Dre. However, in 2015, this music guy moved into a new arena: making money from hair extensions through his investment in Mayvenn.

Mayvenn gives hairstylists the option to have e-commerce sites where they can sell hair weaves to their clients and get a commission on the sales. According to a 2016 Essence article, the Mayvenn network now consists of 50,000 stylists. And as of 2017, the company plans to expand its product line, according to a report by Black Enterprise.

Keep Reading: Investing for Beginners: What First-Time Investors Need to Know

*All net worth figures come from CelebrityNetWorth.com, unless otherwise noted.