Please ensure Javascript is enabled for purposes of website accessibility

3 Investing Lessons From Reality Star Kim Kardashian West

By Katie Brockman – Aug 17, 2020 at 7:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

She could teach you more than you think about investing.

When you think of Kim Kardashian West, you probably do not picture a financial guru, but the reality star is currently worth an estimated $900 million, according to Forbes. Much of that money, however, has come from her various business ventures.

There's a lot to learn from the reality star turned business mogul, whether you're an experienced investor or are just getting your feet wet.

Hollywood sign at sunset

Image source: Getty Images.

1. Diversify your investments

Kim Kardashian West has her hand in several different projects, from her reality series to her makeup line to her own app -- which has raked in hundreds of millions of dollars since it launched in 2014. All those different business ventures not only pad her bank account, but they also limit her risk. If one project doesn't pan out, she still has plenty of income from other sources.

Diversifying is key in the investing world, too. If you throw all your money behind a single stock, you'll be in deep trouble if that company struggles financially. By spreading your cash across many different stocks, you won't be as affected if one or two of those companies don't perform well.

One of the easiest ways to diversify your investments is with index funds or mutual funds. These are large collections of stocks, bonds, or other types of investments, all grouped together in one place. So by investing in just one index fund, you're actually investing in dozens, hundreds, or even thousands of stocks at once. Then if a few of the stocks in the fund take a nosedive, it won't cause your entire portfolio to plummet.

2. Don't let setbacks scare you away from investing

Kardashian West found stardom thanks to a certain, ahem, leaked video. But it was a good lesson in making the best of a tough situation. After her tape was leaked to the public, she sued the company that released it and eventually agreed on a multimillion-dollar settlement. She also capitalized on her newfound fame, starring in the family's reality series Keeping Up With the Kardashians.

When you invest in the stock market, there will be setbacks. The key, though, is to make the best of those setbacks and avoid letting them scare you away from the stock market altogether. The market will experience downturns, and your investments will likely take a hit at some point. You could invest in the wrong stocks and lose money, or you may make the mistake of investing more than you can afford.

You're bound to make mistakes as you're learning, and sometimes your investments will still take a turn for the worse even if you do everything right. But if you learn from these mistakes and keep investing, you'll reap the rewards in the end.

3. Don't underestimate the power of brand recognition

Kim K. is one of the most recognizable celebrities in the world, and she has used that to her advantage. The reality star currently has 184 million followers on Instagram, and she reportedly earns between $300,000 and $500,000 for each sponsored post on the platform. She has spent years building her brand recognition, and that has proved to be very profitable.

Brand recognition is also a crucial factor to consider when investing. If you invest in individual stocks, it's vital to choose wisely. While investing in an up-and-coming brand can pay off if you're lucky, it's often best to stick to tried-and-true companies that have proved themselves over the years. While "recognizable" doesn't always equal "successful," brands that are household names are typically safer bets than unknown companies.

No matter how experienced an investor you are, there's always more to learn. Sometimes, taking lessons from a reality star just might pay off.

The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.