Former athletes and music superstars are among the celebrities who have parlayed their fame into high-profile investments, but another kind of celebrity is becoming increasingly important to organizational life: the Celebrity Shareholder. These are investors, such as Carl Icahn or Warren Buffett, who have obtained fame largely via their investment prowess.

As Auburn University Harbert College of Business faculty member Brian Connelly and his Dartmouth College colleague Mark DesJardine point out in a Harvard Business Review (digital edition) essay, celebrity shareholders provide capital, shape market perception, elevate brand prestige and influence other investors.  

“Celebrity shareholders offer several major benefits. Their investment signals market confidence, attracting institutional and retail investors. High-profile investors can sway other stakeholders, creating a ripple effect that boosts stock demand. Celebrity investors generate media attention, enhancing visibility and positive coverage,” they write in their article.  

Connelly and DesJardine also provide some advice on how businesses can attract celebrity investors to support their enterprise. They describe what they call the FAMOUS approach to attracting celebrity investors, which offers six key elements for strategic leaders to consider.

“To attract celebrity investors, companies need a differentiated business with a compelling value proposition and strong fundamentals,” they write. “Demonstrated growth potential with clear financial metrics and strong revenue growth is essential. Robust corporate governance structures are crucial to protect investor reputation.”

Read the full article, “How to get celebrity investors to back your business,” in the digital edition of the Harvard Business Review.

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