Arnold Schwarzenegger is known as the star of cult action films, as well as as a successful athlete. But not everyone knows about his success in investing. We tell how the actor began and how he earned millions
Schwarzenegger began to do business as early as 19 years: he wanted to buy a sports club, which he led – and did so, although he incurred considerable debts. He promoted the club with his successes: victories at bodybuilder competitions, shootings for magazines, and demonstrations.
The pinnacle of his career was the victory at the “Mr. Universe” competition in 1967, after which he received an invitation to move to the United States – which he did without even knowing the language. There he entered the university, and also continued to perform in bodybuilding competitions and give master classes – in fact, this was his main income.
It was these funds that he decided to invest: he invested in real estate and a company selling bodybuilding equipment. Also, together with fellow bodybuilder Frank Colombo, he opened a construction company Pumping Bricks.
The reason why Arnold paid so much attention to investment and business is the desire to be the master of his own career. He loved cinema, but he often met people in the gym or in acting classes who had problems with money – they were forced to agree to any work that they were offered.
Schwarzenegger did not want to get into the same situation: he wanted to act in films not for the sake of money, but out of love for art. And so he focused on creating a mini-empire before devoting himself to cinema.
Schwarzenegger invested in apartment buildings. First, he invested $ 10 thousand as an initial contribution to buy a house of six apartments: he lived in one of them, and leased five others. And he received income both from rent and from the growth in the value of assets.
Three years later, he sold everything, having received a combined income of $ 169,000, after which he bought a building with 12 apartments – and then sold it, having acquired a house with 36 apartments. He ditched spending on expensive cars and entertainment and reinvested almost all of his money in new real estate.
Schwarzenegger called those times the “magic decade.” “Buildings that cost $ 500,000 grew in value to $ 800,000 over the course of the year,” Arnold said in Tim Ferris’s book, Tools of the Giants. By the end of the 1970s, his fortune exceeded $ 1 million – cinema in those years and did not bring him such income.
Real estate was his favorite investment. He eventually became the owner of hundreds of apartments, office buildings and retail space throughout America.