According to a recent Business Insider article, back in 2005 a freshman filled out a profile for an on-campus recruiting program and was asked to list her business role model. Who did she list?
Jay-Z
Harvard's Office of Career Services asked her to name someone else:
It's not appropriate. I don't think people will respond well to this.
Now, the freshman, Chanequa Campbell, had a particularly unique reason to look up to Hova, she grew up in the same neighborhood as him - Brookyln's notorious Marcy Projects. If he could make it big, so could she. She stood her ground and the OCS let her keep him as her business role-model, albeit under his real name (Shawn Carter).
This article struck a chord with me for two reasons:
Now, before anyone gets any ideas, don't worry, I don't fancy myself some kind of rapper. And I definitely didn't grow up in the projects. But, that's completely beside the point.
I'm certain that if you polled the WSO community at large, the list of names would be dominated by titans of finance: Buffett, Einhorn, Cohen, Jones, and so on. And to be clear, there's nothing wrong with any of those names. If you aspire to run a game changing hedge fund of your own one day, you should admire these guys.
Not me, though. Let's examine the lessons we can all learn from Jay Z while I make the case for the reasons why he's my business role model:
Focus on Your Strengths and Take Intelligent Risks:
Today, Jay Z has a net worth of around $500 million, and while much of his wealth comes from an array of entrepreneurial business ventures, he has always focused on his strengths.
In his early days, hip hop and running drugs were the only two things he had. You don't generally grow up in Bed-Stuy with dreams of one day moving from Goldman to KKR. And while he made some serious cash in the drug game, it was apparent that he had a special talent when it came to rap music.
With no record labels biting and no third party seed capital to speak of, Jay Z self-financed Roc-A-Fella Records with co-founders Dame Dash and Kareem Burke. They produced and distributed copies of Jay's first, and arguably best, record, "Reasonable Doubt" themselves, and from there, the rest is history.
Develop Your Brand and Make Your Own Path:
Something I've always admired Jay Z for was his knack for setting trends. Never one to follow others, he's always blazed his own path.
For at least a decade, he was the trendsetter in hip hop. When he started wearing throw back jerseys, everybody followed. When he famously switched from throwbacks to "a crisp pair of jeans and a button-up," throwbacks died overnight. He even
a few years back.On a higher level, he's always attached his name to products he's believed in. You won't see him thoughtlessly sponsoring bullshit, which brings us to our next lesson.
Diversify Your Assets:
Having made a few bucks selling records, he did the smart thing and entered into new business ventures to diversify his cash flow generating assets.
He founded Rocawear in 1999. At one point, the Rocawear clothing company was grossing $700 million a year in revenue. In 2007, Jay-Z sold the rights to the Rocawear brand to Iconix Brand Group for $204 million while retaining a stake in the company and its management.
He co-founded the 40/40 Club, a chain of sports bars and lounges located in New York and Atlantic City.
Topping it all off, he has a minority ownership stake in the Brooklyn Nets. Hell, I'm not even sure if they Brooklyn move would've gone through without him on board. But, maybe I'm being naive. That said, his christening of the brand new Barclays Center with a headline concert certainly didn't hurt.
That's only scratching the surface of the way he's diversified himself, but you get the point.
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Now, don't get me wrong, I'm not saying that everyone should feel compelled to build an empire of businesses. But, I do believe that anyone who wants to be successful and build wealth can learn a lot from Jay Z. In short:
- Focus on Your Strengths: Do something that strongly suits your strong points and interests. You'll put more effort and enthusiasm into something that you're good at, and you'll probably grow to like it quite a bit, too.
- Make Your Own Path: Don't worry about following the path others lay out for you. That's a sure-fire way to be miserable and burn out. And there's definitely no money in that.
- Take Intelligent Risks and Diversify Your Assets: Recognize that the best way to build wealth is to take measured risks. And unless you're the next Ken Moelis, David Einhorn, or Paul Tudor Jones, it'll be tough to make it big without some creative risk taking. Find ways to put your money to work. Be it in a portfolio of dividend stocks or a venture you're tinkering with in your off-hours, or both. Find something in your wheelhouse and put some work into it. It might pay off big. And if you're smart and measured about it, it'll at least pay off something.
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So, where does WSO stand? Who are your business idols? Am I alone in picking Jay Z? Anyone else have one that's a bit off the beaten path? Let me know in the comments.
And before I finish, here's one of my favorite Jay Z tracks of all time. Enjoy:
“I’m not a businessman, I’m a business… man.”
jack welch
Jay-Z is one of the best when it comes to managing his personal brand. He is extremely careful not to over-expose himself by plastering his face on every endorsement deal that comes his way.
Exactly. That is why when its mentioned how he owns a small stake in the Nets, they don't mention that small stake = 0.067% of the Nets. That isn't even small. That is almost non-existent. But his personal brand is so strong that just his name presence leads people to assume that Jay-Z = Quality.
Always enjoyed these lyrics:
http://www.youtube.com/embed/Y_5BR4YXj_o
Nicely done. +1.
Jay Z is a swell chap. If I listen to one of his most famous tunes, I notice that it steals the chorus from a famous Broadway musical. Straight up. That sort of "borrowing" is crucial to developing a sucessful business career, and really teaches me a lot about how to build wealth.
Owning part of the Nets seems like a poor business decision.
so is buying a car...wtf have you never partied?
like his music, don't know much about his business career, but if you're worth 500 mil, you're doin pretty good.
My role model is Mike Ilitch, owner of the Red Wings and Tigers among many other things. Started off with the first Little Caesar's and now he's hella rich. He's a Detroit legend and has done a whole lotta stuff for the city including advertising for the auto companies for free when they couldn't afford the sponsorship. He kinda makes me want to aspire to be him, somebody who can help Detroit rise from the ashes. I hope the Tigers can win a World Series before he goes.
Oh shit. That guy is awesome. I didn't know any of that. Awesome.
While Jay Z is a great business man he is a horrible rapper. For example, listen to this freestyle and tell me who the real rapper is. Jay can't keep up. Could be one of the greatest verses in all of hip hop starting at 4:08. RIP Big L.
http://www.youtube.com/embed/9dN3aS2Rxfs?feature=player_detailpage
Please, just stop. You have absolutely no idea what you're talking about. How old is this? 20 years? Jay-Z laid down a solid verse and was still very young at this point. Big L is, as usual, brilliant on this, and if he wasn't slain he would have been a GOAT, but the fact of the matter is that he is dead and only put out out 1 solid album. Both are great rappers, and anyone who claims that Jay-Z is anything but superb obviously doesn't know a fucking thing about rap music.
Jay-Z is by far the most astute businessman in hip-hop or perhaps even the wider music industry. Nas, who is probably a better rapper (at the very least lyricist), saw his career peak as he ethered Jay-Z. Unable to market himself thereafter, he's faded from the biggest stage as the mainstream shifted from from hip-hop towards dance-pop, a trend Jay-Z managed to stay ahead of while still producing quality music.
Furthermore, Jay-Z has managed to always take the high road, avoiding the self-parody Diddy has fallen into. He's also managed his relationship with Kanye with incredible poise, distancing himself when Kanye was at his worst (post-Graduation/808s/Award Show meltdowns era) and timing Watch the Throne perfectly as My Dark Twisted Fantasy made Kanye one of the very biggest artists in the world.
Let me know when he gets into the empire business like WW
Solid post. +1 on literally everything you said. And Can I Live, by far the best track he's ever put down
Jack Donaghy, Gordon Gekko....
But seriously, Jack Welch and the Koch brothers.
Jim Simons
He's too smart for my tastes. I think it's usually a good idea, especially if you're in the deep south, to dumb things down a bit otherwise some of the more religious people in town might start to say you're a witch.
I absolutely love Mike Illitch so I'm glad someone brought him up. But anyway... I'm gonna say it just because someone has to.
Jay Z as a business role model... come on. For every media and entertainment (read: celebrity) "businessman" there's 10 guys sitting around a boardroom counting money that created him. And the drug dealer to superstar rap artist story sounds awesome but I honestly have trouble buying it. I understand the reasoning and it's all well and good when it's 19 year old Chanequa who doesn't know a lick about business or what it means to be an actual businessman as opposed to a brand, but I couldn't point at a celebrity and say I'd like to actually run a business the way they do. For example I'm from Detroit and have lived and breathed Marshall Mathers my whole life, but I'm not going to sit here and say he's a fantastic businessman or that his rags to riches story isn't still a by-product of much greater businessmen at work. In this extremely rare circumstance I actually would agree with Obama... "you didn't build that."
Give me Warren, Sergey, Ellison, and T. Boone all day. And fuck Donald Trump by the way, he sucks.
+1
Cracked ran an article a while ago which showed how useless he actually is. I can't link it because I keep getting the spam notification, but a quick google search should turn up the article.
Some of the shit Trump has pulled over his life is insane. I am surprised that he even has ANY brand recognition.
This the one that you are talking about ?
http://www.cracked.com/blog/10-stories-about-donald-trump-you-wont-beli…
Trump does suck, couldn't agree more.
I'd also agree with your argument in most cases, but Jay Z's actually got a pretty legit track record. I mean, in my view he'd be a pretty awesome role model if he just started Roc-A-Fella Records and sold a ton of albums. But, he went way further than that. Starting Rocawear isn't all that different from some finance guy starting a muse side-business in their off-hours, just on a bigger scale due to name recognition and available resources.
And, yeah, I'm sure a lot of what he did for the 40/40 Club was branding...but he still did it. I find it hard to fault Jay Z the same way I'd fault so many other celebrity "businessmen."
do athletes count? grant hill is one of my faves
http://granthill.com/hill-ventures/real-estate.php
Donald Trump is fucking vulgar. I fucking hate seeing his cheap ass. He acts the opposite of blue blood.
PTJ or Elon Musk.
David Neeleman - Founded Morris Air, Founded JetBlue (got kicked out by board), founded Azul. Guy just wont give up.
Apparently I am too inexperienced to post links on this site, so Google "the crimson chanequa campbell".
Looks like things turned pretty rough for Ms. Campbell.
Get rich or die tryin'
Ouch. And it had to involve drugs too.
Jeff Skilling
All you people listing rappers are children.
Ken Fisher.
Bill Gates is legit the greatest businessman that ever lived.
Not only that, he quit while he was ahead.
I agree with the King 100% Reasonable Doubt is one of THE BEST hip hop albums and one of my favorites, and in all fairness you guys are comparing Jay to Buffet and T Boone Pickens!? Cmon! He's a great businessman, and yes he did have help but you can arguably say the same for many others.
Seriously +1 to this. I thought I was out of my mind even listening to Jay Z before meetings and exams. This makes me feel like I belong in the finance world
So, building 500 mm networth on drug money leads to being a great business man and a role model? BRB, gonna go sell all the Adderall I have.
Call me.
Jay-Z easily makes my top 5 just because he rose from poverty. However, I'd give the crown to some tech entrepreneur.. Sergey Brin or Bill Gates perhaps? I'm also a huge fan of Steve Wozniak, although he wasn't as much a good manager as he was a brilliant engineer.
Before he got caught, Viktor Bout. No one has been better than him at building very very powerful connections in all corners of the world....from Liberian dictators to US defense companies executives to IMF directors and Russian Obligarchs...this guy's rolodex must have been super sweet
This guy is probably in my top five. I tend to be intrigued by people with interesting stories, not necessarily super-titans of industry. I'll take him or Jay Z over T. Boone Pickens any day of the week. The dollar value isn't everything.
The guy got caught = fail.
If anything, Roman Abramovich.
Henry Kravis pioneer of PE.
noke2012- The only thing JAY is good at is stealing lines.
http://www.youtube.com/embed/RqScH2CfYTg?feature=player_embedded
Yes. Reasonable Doubt is one of the best rap albums ever recorded (behind ready to die and illmatic). We shouldn't even have to argue, a man coming from nothing that is now worth $500 mil speaks for itself. Maybe not in all cases but def in Hovas. Brooklyn Nets may seem like a bad investment now but I think its gonna pay off long term from a basketball perspective.
Doesn't he own like .... 0.7% of the team or something? Lmao...
How did no one bring up John D. Rockefeller?
The guy's net worth was $660 billion (inflation adjusted.)
Wiki's description of his father: His father, first a lumberman, then a traveling salesman, billed himself as a “botanic physician” and sold elixirs. The locals referred to the mysterious but fun-loving man as "Big Bill," and "Devil Bill".
He dropped out of school when he was 14 to support the family, after his father left.
He sounds pretty gangster to me.
Very surprised no one has mentioned Larry Ellison or Steve Jobs yet. Bill Gates is incredible, but let's not forget that he had very wealthy parents and was afforded every opportunity to succeed, while Larry Ellison (adopted, working class, 'father' said he'd "never amount to anything"), and Jobs (adopted, working class) both built multibillion dollar companies from the ground up with very little support.
Funny but I actually think Jay Z is a great rapper but not such a good businessman. I mean you could argue that I'm in no position to say this but I don't think it's that hard to sell stuff when you're a rockstar/celebrity. It's kinda similar to riding a bull run if you ask me about it. Look at 50 he has the brains of a 12-year old and is worth $250 million. Plus he has no rap skills whatsoever to speak of.
Don't get me wrong I think Hov is a great businessman. He'd probably rank top few among celebrities. But compared to people like Buffett, Icahn etc; I really don't think he's up there. Rap-wise, he's one of my top few (just behind Pac and DMX and just ahead of Nas). Granted, everything since The Blueprint has been pretty meh, Reasonable Doubt is my fav. rap album. Though my top 3 songs are Dead Presidents, Can't Knock The Hustle and Song Cry (I think Can I Live is really dope too though). I'm a really big fan of rap, grew up with it and like some of you, it's seen me through some of my darkest hours. It's just not really been Jay-Z, more of Pac and X.
My roles models in business are Graham (and Buffett), Soros and Icahn. Each for very different reasons but they all do share one trait that I'm fond of. That is they eschew the use of higher mathematics and use methods much less technical, but so much more ingenious.
For bankers, I would say Wasserstein and Sidney and John Weinberg.
Great post. Jack Donaghy is my guy.
Rich Fairbank - arguably the most successful combination of banker/consultant/entrepeneur
Mad props for posting Can I Live. Hands down my favorite rap song ever
Having also grown up on a similar crop of rappers I would have to say that this is one my favorite threads of all time. There is something to be said for a successful entrepreneur that starts with nothing and uses all available resources to climb from the bottom rung of society. I certainly respect these guys a lot more than the guys who started on 3rd base but think they hit a triple. im in the rain doin a buck 40 hydroplanin
Exactly. So much more interesting when you learn about people from relatively normal (or worse) backgrounds that create awesome things. Doesn't need to be someone from the bottom, could just be a normal dude from a normal background. So awesome.
BTW, looks like our good friend Chanequa had some trouble with the law (involved in the murder of a drug-dealer, much?) and was denied her diploma a few years ago.
Birdman...
Andrew mothafuckin Friedman of Tampa Bay Rays!
Basically Friedman made the Rays, with a payroll of almost 1/5 of Yankees and Red Sox into one of the top teams in baseball, notably pulling off one of the greatest dramas in baseball, the 2011 pennant race.
His brand of baseball is basically moneyball 2.0.
The man flipped one overpriced asset-Delmon Young (ranked no.1 prospect for 2006 season) in 2007 for Matt Garza and Jason Bartlett. Bartlett had one of the highest UZR's that season and Matt Garza put up solid numbers for the Rays for a few seasons, until Friedman then flipped these two for even more prospects. Hak Ju Lee is ranked one of the biggest SS prospects, Gomes became a big bullpen asset and Archer is a potential frontline starter. And the rays get to keep them for a looooong time.
http://static3.businessinsider.com/image/4d6d0c40ccd1d52a2b3c0000/delmo…
And this is only one of many many many great trades/signings he's pulled off.
Check out the book The Extra 2% by Jonah Keri, as it details why the Rays were so successful (hint: Friedman and the Rays owners are former Wall St. guys. Friedman worked at Bear Stearns before moving onto PE, and Sternberg (the owner) was a partner at GS)
The title of the first song on his first album Reasonable Doubt explains it all.....Can't Knock The Hustle
I admire Robert McNamara back when he ran Ford (but not the DoD, that was a distaster). Throwback certainly, but he really turned Ford around back then (and was the first non-Ford to serve as president).
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