There’s sometimes a misconception that celebrities are constantly shelling out cash on expensive things, sprawling homes, yachts, expensive liquor, and parties. Actually, some of America’s most brilliant investors are Hollywood celebrities. For many celebrities, the smart investments they have made afford them the resources to fund the luxuries we are often wooed by.

The most famous celebrity investor that comes to mind is P. Diddy, who has since seen his reputation rise far above the title of Hip-Hop star, with his massive stakes in Ciroc Vodka, DeLeón Tequila, Sean John, and The Revolt TV Network taking him very close to the $1 billion evaluation.

Music stars like Jay Z and 50 cent join an extensive list of movie stars and entertainers like Ellen DeGeneres, Robert DeNiro, Ashton Kutcher, Nas, Jessica Simpson, George Clooney, and Reese Witherspoon, amongst many others, to form Hollywood’s elite investors.

According to the prominent investor and fund manager Sami Rusani, “Investments are the most common sense use of great liquidity,” Rusani explains his position further; “Celebrities are one of the classes in America who get paid huge sums in cash for their work. This disposes them to either great profit through investment or waste through unbridled expenditure. However, we are constantly seeing many celebrities choose the former, but even then, great caution is still required in making investment decisions, or it may still end up as a waste.”

What celebrities look out for

In 2006, Dr. Dre took his love of good headphones to the market and co-founded Beats Electronics, a company that Apple
AAPL
bought for $3 billion in 2014. Jessia Alba took her love for environment-friendly products and built an environmentally-friendly brand, The Honest Company, that has since broken the $1 billion evaluation.

Aston Kutcher’s A-Grade Investments Company was launched in 2010,…