Jay-Z Beyond Music: Successful Private Investor and Entrepreneur Praised by Warren Buffett

Shawn Corey Carter, better known by his stage name Jay-Z, was recognized in 2023 by Billboard as the best rapper of all time. Originally from Brooklyn, Jay-Z reached worldwide recognition with hits including Empire State of Mind and Holy Grail. But while this survivor of the concrete jungle has left an indelible mark on music, few know that he is also a savvy private investor.

Jay-Z accepts the Dr. Dre Global Impact Award on stage during the 66th Annual Grammy Awards
Source: Getty Images

With ten multi-platinum albums and the title of the most-nominated artist in Grammy history, Jay-Z’s musical career has been illustrious. But in his lyrics, we can find the bridge between his music and business careers: “True this, the streets school us to spend our money foolish, bond with jewelers and watch for intruders, I stepped it up another level…”

While Jay-Z’s music career is bar none, his businesses and private investments have also made him a successful businessperson. He follows three fundamental lessons in investment that made him one of the wealthiest people in the world, showing that celebrities and individuals alike can invest and successfully multiply their wealth.

Lesson 1. Diversify by Picking Multiple Investment Types

Forbes once described Jay-Z as having “a sprawling and diversified empire,” and the scope of his influence is truly remarkable. Warren Buffett once said, “For a young person growing up he’s the guy to learn from.”

Warren Buffett, Jay-Z, and Steve Forbes talk about the role of 'chance' throughout their career
Source: Forbes

Jay-Z does not focus solely on the music business. He owns liquor brands D'Usse and Armand de Brignac, entertainment company Roc Nation, art, real estate in California and New York, and high-end bars and restaurants. He co-founded Rocawear, a brand of urban-style clothes, which he sold to Iconix Brand Group for USD 204 million in 2007. And between 2015 and 2021, he purchased, rebranded, and sold for USD 297 million the music streaming service Tidal.

Jay-Z’s approach to diversification can serve as an example to many; when the COVID-19 pandemic hit in 2020 and his investments in real estate and restaurants suffered, Jay-Z had other sources of income that did well, such as music and liquor.

Recognizing the benefits of diversification, Jay-Z embraced the potential of uncorrelated assets, including private market investments in his portfolio, which have significantly contributed to his wealth. The musician has invested in various companies, such as Uber before its IPO and Bitski, Therabody, and JetSmarter, all of which have yet to go public.

One of the reasons Jay-Z can extend his portfolio is that he launched a venture capital fund, Marcy Venture Partners, L.P., specifically to invest in consumer-focused start-ups that deliver products and services to mass-affluent individuals.

Jay-Z’s net worth by category
Source: Investopedia, GeeksforGeeks, Forbes

Lesson 2. Integrity – Staying True to Yourself and Your Principles

Jay-Z’s investments often have some meaning or relation to his life. During an interview with CNN Business, he gave this advice:

Do things that are true to you. Most things I’m involved with are an extension of being creative. Rocawear’s a clothing company, part of who you are in hip hop is your attitude and what you’re trying to express, how you dress. I loved sports growing up, I grew up in a household where sports were on 24/7. These [are] all things that are comfortable for me.
— Jay-Z during an interview with CNN Business

Music, real estate, art, clothes, liquor – all of it points back to who Jay-Z is. He is adamant about staying true to himself. He doesn’t diverge in investing or music but speaks from what he knows, avoiding fleeting trends and instead influencing the world via music and his businesses. This approach aligns with Warren Buffett’s principle to “invest in what you understand,” which Jay-Z expresses as “invest in what is close to who you are, and what you understand.”

It's the discipline not to get caught up in the moment. You know, music is like stocks, too. There's the hot thing of the moment. [...] People tend to make emotional decisions based on that. They don't stick with what they know, you know, this is who I am. This is what I do. They jump on this next hot thing. And it's not for you.
— Jay-Z during an interview with Forbes

Lesson 3. Discipline – Be Consistent and Know Your Goal

We on our own, stop sittin’ around waitin’ for folks to throw you a bone, if you can’t buy the building at least stock the shelf, then keep on stackin’ ’til you stockin’ for yourself…
— Lyrics from the song Entrepreneur by Pharrell Williams and Jay-Z

For an artist to transcend their art and launch a business is rare. Jay-Z initially dominated the rap scene and has since expanded his empire into the world of investing, increasing his net worth by 2.5 times since 2019.

Attributing his success solely to luck would be misguided, as Jay-Z has long preached the values of discipline and “hustle,” remaining faithful to his ethos from the beginning. He embodies a growth mindset, continuously striving to surpass his previous achievements, echoing Buffett’s principle: “We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”

If investors had to choose which of Jay-Z’s attributes to emulate, his discipline and drive for excellence would be good choices. In an interview with Oprah Winfrey, Jay-Z said, “Excellence is being able to perform at a higher level over and over again. You can hit a half-court shot once. That’s just the luck of the draw. If you can consistently do it through eleven championships like Bill Russell, then that’s excellence. [...] Excellence is being able to perform at a higher level for a long period of time.”

Excellence is more than just execution; it is repeated and consistent execution.

Final Thoughts

Even amid his glamorous lifestyle, Jay-Z stays connected to his Brooklyn upbringing and remains mindful of his modest origins. Having weathered many of life’s challenges, he demonstrates that with the right passion and mindset, everyone regardless of age or origin can achieve success in investing.