While the miracle of celeb may elevate the status related to specific people, this does not mean that everything celebrities touch turns to gold. Here are some bad celebrity investments that may cause you to feel better in the evening.
Investing as Mark Twain
A well-known writer and humorist who has been called America's first modern celebrity, Mark Twain spent $150,000 to $300,000 (a massive amount of money back then) over 11 years during the late 19th century on a machine called the Paige Compositor. This was a typesetter that was said to be faster than standard Linotype. Unfortunately, the machine had more than 18,000 parts and needed constant care, so the business died.
Jay-Z
The big investment mistake made by Jay-Z would not totally end until December 2010 when out-of-court settlements and legal battles finally ended. He bought land to produce a luxury hotel in New York City. The hotel was going to be 150,000 square feet and would be for luxury guests in the Chelsea neighborhood. He started the project in 2007 right before the economic crash. He ended up defaulting on the $52 million loan and shut down the project due to lack of funds. Hotel partners had to give the lender the property back.
Bono
The U2 front man is a managing director for the private media and entertainment equity firm Elevation Partners. After making a killing with investments in Yelp, Facebook and video game businesses BioWare and Pandemic Studios, later investments in Palm ($460 million) and Forbes, Inc. ($300 million) turned into enormous losses. Ultimately, Elevation's return on those investments was only $25 million, which was enough to convince the site 24/7 Wall Street that Bono is "the worst investor in America."
Investment from Larry King
A huge life insurance scam was put on King when he invested into two policies worth $15 million. He wound up only getting $1.4 million out of the sale.
Everybody associated with Madoff
More than 200 investors, including celebrities were taken in by Bernard Madoff's $65 billion Ponzi scheme. Madoff is now in jail serving 150 years for 11 federal felonies, while celebrities and lower-profile investors are still looking for ways to make up for their sizable financial loss.
Poor investment from Burt Reynolds
Bert Reynolds really struggled after his movie star days. He decided to put $15 million to the restaurant chain PoFolks. He started this restaurant in Texas, Florida and California. It died off, as would be anticipated, and he lost everything in the divorce with Loni Anderson. He ended up going bankrupt in 1996, which did not hurt too badly considering he was able to keep all property he owned that was not already claimed by Anderson such as a $2.5 million mansion. This was in spite of the belief that he actually owed $10 million at the time.
The last bad investment
Debbie Reynolds decided she wanted to open a Las Vegas casino and hotel in 1991, although she did not realize that being off the strip would make it extremely hard to stay in business. It was known as the Debbie Reynolds Hotel and Casino, but she ended up selling it for $10 million to the World Wrestling Federation in 1998 after a 1997 bankruptcy. She ended up broke, and was even worse off when having to sell all her movie career memorabilia in 2010 when her museum went bankrupt.
Investing as Mark Twain
A well-known writer and humorist who has been called America's first modern celebrity, Mark Twain spent $150,000 to $300,000 (a massive amount of money back then) over 11 years during the late 19th century on a machine called the Paige Compositor. This was a typesetter that was said to be faster than standard Linotype. Unfortunately, the machine had more than 18,000 parts and needed constant care, so the business died.
Jay-Z
The big investment mistake made by Jay-Z would not totally end until December 2010 when out-of-court settlements and legal battles finally ended. He bought land to produce a luxury hotel in New York City. The hotel was going to be 150,000 square feet and would be for luxury guests in the Chelsea neighborhood. He started the project in 2007 right before the economic crash. He ended up defaulting on the $52 million loan and shut down the project due to lack of funds. Hotel partners had to give the lender the property back.
Bono
The U2 front man is a managing director for the private media and entertainment equity firm Elevation Partners. After making a killing with investments in Yelp, Facebook and video game businesses BioWare and Pandemic Studios, later investments in Palm ($460 million) and Forbes, Inc. ($300 million) turned into enormous losses. Ultimately, Elevation's return on those investments was only $25 million, which was enough to convince the site 24/7 Wall Street that Bono is "the worst investor in America."
Investment from Larry King
A huge life insurance scam was put on King when he invested into two policies worth $15 million. He wound up only getting $1.4 million out of the sale.
Everybody associated with Madoff
More than 200 investors, including celebrities were taken in by Bernard Madoff's $65 billion Ponzi scheme. Madoff is now in jail serving 150 years for 11 federal felonies, while celebrities and lower-profile investors are still looking for ways to make up for their sizable financial loss.
Poor investment from Burt Reynolds
Bert Reynolds really struggled after his movie star days. He decided to put $15 million to the restaurant chain PoFolks. He started this restaurant in Texas, Florida and California. It died off, as would be anticipated, and he lost everything in the divorce with Loni Anderson. He ended up going bankrupt in 1996, which did not hurt too badly considering he was able to keep all property he owned that was not already claimed by Anderson such as a $2.5 million mansion. This was in spite of the belief that he actually owed $10 million at the time.
The last bad investment
Debbie Reynolds decided she wanted to open a Las Vegas casino and hotel in 1991, although she did not realize that being off the strip would make it extremely hard to stay in business. It was known as the Debbie Reynolds Hotel and Casino, but she ended up selling it for $10 million to the World Wrestling Federation in 1998 after a 1997 bankruptcy. She ended up broke, and was even worse off when having to sell all her movie career memorabilia in 2010 when her museum went bankrupt.
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