NEW YORK, NY - NOVEMBER 18: Kylie Cosmetics are displayed at Ultra beauty on November 18, 2019 in ... [+]
Every time Kylie Jenner makes a splash in financial markets there’s a predictable outpouring of cynicism and judgment by people who think her wealth was inherited or fortune undeserved.
It happened back in 2018 when she erased more than a billion dollars off Snap shares with a tweet, it happened last holiday season when she partnered with Ulta Beauty, and it happened again today as publicly-traded Coty Inc. said they bought a 51% stake in her company, Kylie Cosmetics.
Yet many still recoil at the idea of Mrs. Jenner as being self-made. She’s a Kardashian, she’s automatically famous, she fell into fortune – all the usual dismissals. It’s hard not to see bitterness or jealousy as the baseline for criticism from investors and traders in the male-dominated financial industry, but there’s a particular degree of irony when it comes to their jabs.
Becoming a cultural icon can indeed happen by chance or by birth, but maintaining that status is not random. It requires a deep understanding of people, their demands, their needs, and moving in front of those needs to provide services and products. That’s corporate savvy. Most people are followers; business intelligence can be defined as knowing where the herd will go, and positioning yourself in front of it or precipitating its move.
Sound familiar?
That’s right: maintaining popularity is hugely analogous to being a good investor. Yes, Kylie was born famous, so her stardom and social influence began with her name. But dominating culture for as long as her family has and maintaining that status requires the same skill sets as a portfolio manager beating their benchmark over a sustained period of time.
I’m sure her allowance growing up was a lot better than mine/possibly close to infinite, but I’m pretty sure it wasn’t a billion dollars. Kylie has shown some impressive return on investment through her industriousness.
Maybe instead of blasting her family, market participants should try and learn a thing or two.
