Bret Michaels rocks on with investments

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Nancy Mazzei

Contrary to his rocker image, Bret Michaels, who is the frontman for Poison and a “Celebrity Apprentice” winner, takes a measured strategy that makes sense for any investor: Make sure that you have conservative investments to keep your portfolio afloat.

Rather than stick his money in index funds, Michaels splits his portfolio between stocks, which include some that are high-risk—although he wasn’t able to name specific ones—and bonds that have a moderate interest rate of 4 percent to 5 percent. He also invests in mutual funds. Michaels targets an annual gain of 8 percent to 9 percent. (The historic annualized gain for the Standard & Poor’s 500 Index is 10.01 percent per year.)

Michaels tells Consumers Digest that he likes  to invest in tangibles, such as Ford (NYSE: F; Price: $9.46) and PetSmart (Nasdaq: PETM; Price: $42.31). Consequently, he pulled out of technology stocks in 1999—he says he realized that people were “buying air”—before that market tanked. That’s a good lesson in resisting the herd mentality of whatever stock is popular at that time.

S. Berg