Kathleen Elkins, CNBC
Posted 4:39 p.m. ET July 11, 2019
Shaquille O & # 39; Neal (Photo: ETIENNE LAURENT, EPA-EFE)
Since retiring from his 19-year basketball career in 2011, Shaquille O'Neal has seen so much success off the court:
He was a He was one of the first investors in Google and since then has accumulated an impressive portfolio, which includes investments in Apple, 24 Hour Fitness and nightclubs in Las Vegas. He also owns 17 Auntie Anne, a Krispy Kreme franchise and a Big Chicken restaurant in Las Vegas.
When it comes to investing, the former NBA star is inspired by Amazon's founder and CEO: "I heard Jeff Bezos say once [that] he makes his investments depending on whether he's going to change people's lives, "O'Neal told the Wall Street Journal in a recent interview." Once I started doing that strategy, I think I probably quadrupled what I'm worth. "
It helps you decide which opportunities to skip and which to skip. "If something comes to my desk and I do not believe in it, I do not even look at it," O'Neal said, even if he looks excellent on paper. In fact, he rarely focuses on numbers: "Every time I do business, it's not about money."
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As he told Bob Pisani of CNBC last year, "I never say:" If I invest in this, five years later, we could sell it for this. "Every time I've had that model, it's always been a failure . "
He is not the only successful investor who stays true to what he knows and trusts. "Make sure you're investing in things you believe in, instead of investing in things that other people believe in," PayPal's vice president of international markets, Rohan Mahadevan, told CNBC Make It. He recommends testing a product or service before investing in it to better understand how the business works.
O'Neal also prefers to work with companies that he personally enjoys. Of all his investments, Krispy Kreme is his favorite, he told the WSJ, "because I like donuts … Krispy Kreme is a fabulous donut, he was introduced to me in college and I've been in love with him ever since."
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That said, you do not necessarily want to invest in something just because you like it. He also wants to make sure he really understands the company, says legendary investor Warren Buffett: "What an investor needs is the ability to correctly evaluate selected companies." Note that the word "selected" does not have to be an expert In all companies, not even many, you only need to be able to evaluate companies within your circle of competence.
"The size of that circle is not very important; Knowing your limits, however, is vital. "
In short, when it comes to investing, Buffett says to stick to what he knows. "Defining what your game is, where you are going to have an advantage, is of enormous importance."
Once you have done that, buy and hold, add: "If you are not willing to own an action for 10 years, do not even think about having it in possession for 10 minutes."
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