How could those who win the Sanremo-proiezionidiborsa.it Festival invest and make their money bear fruit
There is no cash prize for those who win the Festival except a reimbursement of expenses. But then why do you participate in the Festival? Very simple! The victory leads to international fame, to sell many records, to participation in television broadcasts and concerts around the world. Today we don’t want to count in the pocket of who will win the kermesse, we don’t care what their current assets could be, but we want to analyze through the historical series how whoever wins the Sanremo Festival could invest and make their money bear fruit?
Ours is not advice, but an analysis of simple, neutral historical series and of which investments have proved successful over time from 1898 to today.
Who are the favourites?
According to the bookmakers the favorites are Marco Mengoni aged 34, followed by Last aged 27 and then from Lazza aged 28. They are all three very young.
Whoever won the Festival over time has also built empires, we are referring for example to Eros Ramazzotti, whose assets are estimated at around 275 million euros, or the Maneskin who, despite a 2022 budget which saw the members of the group earn around 50,000 euros each, assumes a rapidly growing career with extraordinary earnings in the coming years.
How could those who win the Sanremo Festival invest and make their money bear fruit?
Singers like writers earn on copyright, and this guarantees them almost constant income over time. Everyday history brings us back to characters from the world of entertainment who have gone broke. How come? The explanation is simple: they invested their earnings not badly, but very badly!
How could these rents be made fruitful?
First of all, a prudent choice could be to subscribe to a pension fund (their pension will perhaps be starving!), and given the long duration it would be preferable to overweight the equity component. Furthermore, for those wishing to accumulate capital over time through a PAC (dollar cost average), we report our calculation on those who have invested for 40 years at 4% and 10%. The first is the current yield on BTPs (long-term government bonds), and over the years government bonds have also yielded much, much more. The second is that of the Dow Jones (world stock exchanges) based on the historical series from 1898 to today.
Efficiency of the two hypotheses:
1 euro accumulated per day for 40 years at 4% per year would have led to the following result:
€35,000 with an investment of €14,600;
for those who had invested the same amount on the stock markets:
161 thousand euros with an investment of 14,600 euros.
Those who decide to invest in the stock markets should prefer world stock exchanges diversified according to GDP (America 50%, Europe 30% and 20% Asia and Emerging Countries.
What about the one-off capital that would come from concerts and tours?
They could be invested in the stock market. In fact, based on the historical series, those who invest in a 10-year perspective at any time (down or up) after 10 years have almost a 90% probability of obtaining a positive return, around 97.5% in 20 years.
Capital and assets should be diversified. For example, you could also invest in some postal savings bonds or in properties to rent and make an income. And the Bank account? The less you park on this liquidity tool the better! Because it is not an investment, indeed it often represents a cost, and over time it could prove to be a wrong investment. As we have seen, those who invest in time could make better use of their money.
