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Kenny G Investing in Stuff is Good Entertainment- and Good Business

Best-selling smooth jazz musician Kenneth Gorelick, affectionately known by his stage name, Kenny G, doesn’t drink coffee, but he does own some. Are you buying it? Actually, you probably are.

That’s because it’s not just ANY coffee business–it’s Starbucks. As an early investor in the Seattle chain, Gorelick’s stock soared after the company’s IPO — up 12,000%. Gorelick has even said he was part of inventing the iconic Starbucks Frappuccino.

Sounds Great: Kenny G Investing in What He Loves

While his music earnings have spiraled downward due to digital downloads and music piracy, Gorelick’s stock portfolio has only gotten bigger. In fact, Kenny G investing in these areas has proven to be a sound strategy for him, earning him at least as much as his Grammy- winning music career. He’s also made a successful investment in United Airlines.

You may also like, “Embrace Your Inner Child with Tangible Assets

Kenny G talked to Reuters and CNBC about his investment acumen, and it appears we can learn a few things from him:

  • Diversity: Kenny G knows that a diverse investment portfolio is important, and safer. With a mix of publicly traded stocks and private investments, Gorelick, who was an accounting major in college, has an account with a trading firm and a set of public stocks he spends his mornings trading.
  • Humility: Kenny G asks for expert advice. “He asks people he considers smart about what is happening in their fields,” according to Reuters. “If he comes across a company that looks promising, he watches it for a while, reading coverage of the companies and doing other research, and then might buy on a dip.”
  • Due Diligence: Kenny G stays away from “friendly” tips. After one successful investment, as recommended by a friend, Gorelick chose another based on a friendly recommend, which subsequently cost him a big loss. Lesson learned- do your own homework and don’t cheat off a friend, just like high school.
  • Risk-Taking: Kenny G investing in his own areas of interest means he doesn’t always take the safest approaches- he takes risks. As we can see from his portfolio, he has shares in giants such as Apple and Microsoft, but he isn’t one to shy away from new approaches in business. His music was one of the first CDs carried at Starbucks locations, in 1994. Starbucks’ music-selling model attracted big names, like Paul McCartney and Joni Mitchell, before the company stopped selling music in 2015. )Starbucks still dips its toes in music with streaming playlists).
  • Involvement: Kenny G pays attention to his investments. Gorelick’s assets aren’t just left to the professionals to deal with. In fact, he spends significant time watching over them himself, as any investor should do. After all, if your music career doesn’t pan out, you won’t be playing the blues.

You may also like, “Do Tangible Assets Outperform Stocks and Bonds?

Not all of us can be successful jazz musicians like Kenny G, but if we take “note” of his investment strategies, we may see our own portfolios grow and flourish–just like Kenny G.

About Sylvia Masuda

Sylvia Masuda is an associate editor for Financial Poise. A graduate of California State University, Fullerton, Sylvia has worked as an editor and designer for various print publications for almost 10 years.

View all articles by Sylvia Masuda »

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