My top financial advice to movie stars and pro athletes
Unless you intend to be there 10 hours every day to manage it. DO NOT invest in restaurants, ever.
12 hours..................
That advice isn’t just for movie stars and pro athletes.....the restaurant business is terribly competitive and has an astronomically high failure rate.
I’ve invested in over 60 startup restaurants in the last decade and I have two rules that have served me well.
1. Owner-operators only
2. No white people (I’m white)
Most white people have a romantic notion about owning a restaurant but few are willing to deal with the harsh reality of long hours for potentially low net income.
I have financed a couple of exceptions. I did 10 restaurants over 5 years with a white guy who was a restaurant manager; he had developed an interesting model and was very profitable with his first restaurant before I got involved.
Based on my successes and losses, I am an equal-opportunity racist investor, though. I have rules in every industry. I even have geographic limitations...for example no investments along the California coast, especially LA County (Central Valley is great).