‘A bad idea’
For those attracted to high-risk investment opportunities, Cena offers one piece of advice: consult a venture capitalist.
“If you're someone who wants to get rich quick, there's nothing wrong with that — OK — understand the math behind that, talk to a venture capitalist and ask them how many of their assets fail,” he said.
He added the risks involved, saying, “A venture capitalist will invest in 400 companies, hoping one survives.” Venture capitalists are investors who provide capital to new businesses, typically startups with high potential, in exchange for an equity stake.
“You’ve got to take that $100, somehow bet on 400 companies and hope one hits,” Cena said, highlighting the stark reality for small investors looking for quick wealth. However, if you only invest in one, you’re “locked into that hook, line and sinker.”
He encouraged investors to understand their own risk tolerance and investment style, warning against comparing oneself to others. “I think keeping up with the person next to you is a bad idea,” Cena cautioned.
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Read More‘Don’t carry any bad debt’
John Cena is a staunch advocate for financial prudence, emphasizing the importance of living within one's means. He warns against spending money you don't have and recommends spending less than you earn to facilitate savings.
He is also critical of the practice of carrying debt. Cena recognizes that this perspective is not universally accepted, as some individuals believe in leveraging borrowed money for investments that could potentially yield returns exceeding the cost of the debt. However, he avoids such strategies.
“I'm just afraid one day they're going to call the margin and I don't have the money, so I tend to not want to owe anyone anything,” he explained.
Cena’s philosophy on personal finance is straightforward and grounded in accountability: “Don't spend more than you have, don’t carry any bad debt, and be accountable.”
‘A ton of bad purchases’
Despite Cena's prudent financial strategy, he admitted that not all of his purchases have been wise, particularly when it comes to his passion for cars.
“I made a ton of bad purchases,” he confessed. “I have lost so much money on cars.”
Cena is an avid car enthusiast, especially when it comes to American muscle cars. However, his most notable lesson does not involve a high-octane American classic but a counterfeit Italian supercar.
“I remember when I started making money, my worst purchase … because I didn't want to spring for a Lamborghini, so I bought a fake one,” he said. “This was 2003. I found a company that would do it, they put a V12 in it, I’m like ‘Man, it’s the same thing. It looks pretty good; like it looks great!”
The knock-off Lambo, Cena explained, had a BMW V12 engine. But, the dream quickly soured.
“They tried to stiff me out of the car. I had to ask some friends who knew how to find things, to go and find things,” he recalled. “I then had to get a title for the car, which I did. The car finally shows up after two years of waiting — it doesn't go into gear.
“The motor is held together with the timing of two Chevy V6s. So everything's confusing. Nothing runs.”
Cena sent the car to ten different shops, enduring a prolonged saga. “I just got the keys to that car a week ago,” he told Sharpe.
The two-decade experience with the car was not just frustrating but costly. Cena explained that the money he spent acquiring that fake Lamborghini and getting it to work equaled the cost of one and a half real roadsters.
It was an expensive lesson for Cena.
“If you take shortcuts, you're going to get what you pay for.”
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