Did Amitabh Bachchan actually ride the bitcoin wave and become a cryptocurrency crorepati! NO!
The headlines this week made most people believe that Big B had invested in bitcoins and grew his $2,50,000 investment to $17.5 million in 3 years through this investment. The reality is that he bought shares of a company which was bought over by a company working in the blockchain space and due to the new shareholding, his investment zoomed. HE DID NOT BUY BITCOIN DIRECTLY.
Its true that celebrities can influence peoples investment behaviour by their endorsements. Thats why most insurance companies had the likes of Sachin Tendulkar advertising for them and gullible investors lapped up their low returning policies. Did they really think Sachin Tendulkar was actually buying a child plan for his own kids?
The whole idea of using celebrities for endorsing investment products or reporting about their investments is something that the regulator must put a hold on. It is a well known fact that individuals try to track the investments of big equity investors or star fund managers but seldom end up making money in these investments. This is because by the time the news of the celebrity’s / star investors’s purchase comes out, the investment has already appreciated quite a bit.
Hence it is important for investors to do their homework, read up, assess risks rather than blindly following other peoples investment strategy.