Restaurateur Joe Bastianich knows how to choose the best ingredients in his profession, and, when it comes to investments, the judge of “MasterChef” and author of “Restaurant Man,” believes the best ingredient is you.
Bastianich operates on the premise that investing in areas that match his professional experience, education and goals is more profitable than allowing the whims of the financial markets to decide how much that he’s worth. Thus, almost his entire investment portfolio is his restaurants and wineries, although he’s had to develop a steel stomach to tolerate the risk.
He learned, for example, that guaranteeing bank loans makes you personally responsible for wage claims that can threaten your entire financial well-being. That exposure to risk taught him to understand the effect of all liabilities that he has, which is a good practice even if you don’t run your own business.
When it comes to investing with friends, Bastianich has been burned when he chose to “go with the flow.” He believes in investing only what you can afford to lose. Bastianich doesn’t have a financial adviser, and he estimates that only 2 percent of his assets are in stocks, bonds and other securities.