Zion Williamson, former Duke Blue Devil star and future top NBA draft pick, is about to become one of the wealthiest teens in the world, and “Shark Tank” star Kevin O’Leary recently offered up some investing wisdom for the youngster:
‘Over time, build a real estate portfolio, some really boring bonds and some large cap, dividend paying stocks.’
Sensible advice? Sure. Odds Williamson follows it and properly protects his stash? Not all that likely, considering how fast cash tends to slip through the fingers of newly-minted millionaires of the pro sports set.
According to a Sports Illustrated article several years ago, 78% of NFL players are either bankrupt or are under financial stress within two years of retirement and about 60% of NBA players go bankrupt within five years after leaving their sport.
Aside from telling Williamson to find an advisor and build a relatively safe portfolio, O’Leary also urged him to avoid a trap so many players fall into.
“Don’t have an entourage,” he told TMZ in an interview. “Walk around with two people, not 20. Most of the money goes to people you forget after a while.”
And finally, O’Leary says Williamson’s got to look the part.
“You want a little fashion sense… you want a sharp suit,” he said. “Get a great watch… If you wear an Apple AAPL, +2.66% Watch, you’re 20% off retail when you start, before you’ve said anything. You wanna really start to show them the designed flair and that gives you market value that people will want to advertise with you.”
Watch the full interview:
The NBA draft takes place on June 20, and it’s virtually a slam dunk Williamson is taken by the New Orleans Pelicans with the first pick. He’s expected to earn some $45 million through the end of the 2022-23 NBA season, according to Spotrac. And that doesn’t even include his sneaker deal.
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