Thoughts On Kobe's Big Win With BodyArmor
Thoughts On Kobe Bryant's Investment With BodyArmor
Kobe Bryant recently saw his value of his initial investment of 6 million dollars in BodyArmor jump to 200 million dollars thanks to Coca Cola's investment into the company. Since Kobe has retired he has been in the news for his accomplishments whether it's opening up his 100 million dollar VC fund or winning an Oscar as a writer for his "Dear Basketball" animation. While it's great to recognize Kobe for his transition and how he's a frugal athlete, it's important to keep in mind, Kobe's financial situation is a little bit different compared to the average athlete. With that being said, it's important to analyze the key steps he took and point out the takeaways from his investment with BodyArmor.
Kobe Bryant invested 6 million dollars into BodyArmor. That means Kobe was willing to lose 6 million dollars if BodyArmor were to go belly up. As professional athletes, it's vital you know your financial situation in relation to your risk tolerance when investing in start up companies. Yes, we would all like to make 30x our initial investment but maybe in some cases coming in at a lower number may be better suited for you.
Everyone has been talking about Kobe but have failed to mention the other professional athletes that made X times their investment albeit at a lower number. Maybe their stock isn't worth 200 million but I can assure you, it's worth more than what they invested in at.
In order to win big when it comes to investing, you have to be patient. BodyArmor launched in 2011. It took 7 full years for the company to get to this point. As an athlete, it's tough understanding how to play the long game. When you are use to working hard and seeing results immediately having the patience to know that your investment is a long term play can be difficult. It's important to know that when you put money into a company or fund, it will take awhile to see returns. That is why it's important to talk with your team and understand how you want to allocate your portfolio.
Investing in startups is like baseball. Everyone wants to hit the homerun but that doesn't happen all too often. In most cases you just want to get on base with your investments. Kobe's wins may cloud your judgement but it's vital you understand that cases like these don't happen all too often. Investing in start ups is almost like gambling in a sense.
For you to be successful, you have to do your homework and get with the right team. Kobe Bryant didn't just wake up and become a VC guru. He was able to partner and connect with the best players in the VC space to learn and grow. Just like when young players train with Kobe in the offseason to get better in basketball, Kobe connected with the "Kobes" in the VC space like Jeff Stibel to get better. For that reason is why we are hearing his wins rather than his losses in the investing space.
*Something to keep in mind for professional athletes. When you invest or endorse a company, you are officially tied to that brand. So make sure you not only like the brand but you are confident in their capabilities and vision. If something goes wrong, guess who they will talk about in the headlines? Yes, YOU! Make sure you keep that in mind when you are involved. Whether the company goes bankrupt or catches a bad rep, it is also your name that is on the line. As athletes continue to get more involved in the investment space, the results for your wins and loss will be more publicized.