On the 9th July 1997 I stood amongst thousands of people to see Michael Jackson perform at Don Valley Stadium.  

A compulsive investor by nature, I found myself accidentally working out the gross takings of that concert. Sometimes I just can’t help myself. My conclusion was that one Michael Jackson concert could generate a staggering sum of money.  

Michael Jackson should have been phenomenally wealthy, more so than he apparently was. The earning power of Michael Jackson was unmatched in the world of entertainment, but so were his spending habits. His life is a fascinating case of how with great wealth comes great responsibility. 

So what can the investor learn from this musical genius and his behaviour? 

1.     Debt is Behavioural

Thriller alone is estimated to have made Jackson more than £75 million, but he could also spend serious money. At the time of his death Jackson allegedly had debts exceeding £300 million.

The lesson for the investor is to develop appropriate behaviours when it comes to money management, and to avoid debt where possible.

Michael Jackson squandered a lot of his wealth, but he also demonstrated the ability to focus like a laser on some opportunities.

2.     Michael Jackson Was Shrewd

Michael Jackson made some stunning investments. In 1984 he purchased the rights to a large volume of the Beatles back catalogue in an investment that cost him more than £30 million.

Last year it was estimated that this investment could be worth over £600 million. Not a bad return.

The investor is always looking for the opportunity to increase wealth. The Beatles catalogue was not cheap in 1984. Michael Jackson chose to invest in quality. There is a strong argument for doing the same when buying stocks and shares.

3.    Learn From Your Mistakes And From People With More Experience Than You

‘The greatest education in the world is watching the masters at work’.

Michael Jackson

One interpretation of the terms and conditions of the Michael Jackson Family Trust Fund would be that Michael Jackson understood the challenges of wealth and its management.

His children are reported to be unable to access their full inheritance until they are 40. Life experience and compounding will likely ensure their financial security.

Wisdom and time are two of the greatest assets an investor can accrue.

4.     Be Optimistic When Others Are Not

Michael Jackson was probably not thinking about the stock market when he said the following, but it seems like good investment advice to me.

 ‘In a world filled with hate, we must still dare to hope. In a world filled with despair, we must still dare to dream. And in a world filled with distrust, we must still dare to believe.’

                                Michael Jackson

For the investor it is in the darkest moments that the brightest opportunities arise.

Jamie E Smith is the author of Making Money From Stocks And Shares

This content was provided by one of our users, Jamie