Afraid of $50 Million in Profits, Shaquille O’Neal Invested in Low-Risk Government Bonds in the 90s: “You Give Me $5 Million”

Shaquille O’Neal has a net worth that is one of the highest among athletes, and it has taken the right people and some smart decisions to reach that stage. He was surrounded by people who promised to turn his $5 million investment into $50 million worth of profits. However, in the book ‘Shaq Talks Back‘, Shaq talks about hiring Lester Knispel. Lester advised Shaq to invest in low-risk government bonds, which immediately impressed him.

The former basketball superstar turned sports analyst, O’Neal is a prominent celebrity figure in the USA. He garners the affection of his fans through his loving personality as well as his generosity. The four-time champion has made his living playing in the NBA, as a basketball analyst for TNT, through endorsements and investing in the right opportunity.

How did Shaquille O’Neal select his accountant?

As the famous saying goes, “You are only going to be as good as the people you surround yourself with,” Shaq’s immense success is a testament to the above quote. So, when he decided to hire an accountant, he ensured that he surrounded himself with the right person for the job. In the book, Shaq narrates the story:

“A couple of firms told me what they thought I wanted to hear. ‘You give me $5 million, we can flip it and make it $50 million.’ I didn’t want to take those risks. Coming from a household that never had a lot growing up, I wanted to hold onto my money. Lester told me who his clients were, that he had a small firm and how much money he manages for them. ‘I’m not high-risk at all,’ he said. ‘Low-risk, government bonds. Because I feel 6 percent is a better risk than getting 50 percent high-risk.’ So he’s just a no-risk type of guy with cash. That’s the guy I like.”

That is some of the best advice you would receive from a player who has been through it all. Along with being a great athlete, Shaq is also wise beyond his years. He could have taken the more lucrative option of investing in high-risk opportunities, earning him $50 million. But Shaq chose to invest in government bonds that gave him 6% interest. Ask Warren Buffet, and he would laud Shaq for his decision.

Lester Knispel was a smart man who knew the difference between being rich and being wealthy. A financial guru for sports athletes, he helped Shaq grow his empire one step at a time, vetting the right opportunities and taking the appropriate amount of risk. While some promise you the world and end up taking a pound of flesh, there was Lester, whose mantra was – low-risk, guaranteed reward.

Shaquille O’Neal’s net worth and investments

Shaq’s net worth stands at around $450 million, making him one of the top 10 richest NBA players ever. Besides having a plethora of income sources, Shaquille O’Neal has increased his capital through timely investments. And Lester has played a key role in making those investments come true.

Like any good investor, Shaq has diversified his portfolio among startups, real estate, stocks, and franchises. His franchises include famous names like Papa John’s, Big Chicken, and Krispy Kreme. He also owns shares of tech giants like Google, Ring, and NRG Sports. A diversified portfolio helps Shaq earn a good return when the market is up while sustaining minimum losses when the market is down.