June 19th 2023.
In recent years, investing has been on the rise in the Black community. The COVID-19 pandemic presented an opportunity for Black men and women to learn about money, invest in businesses, and even purchase real estate. This movement was further encouraged by the Black Lives Matter movement and Juneteenth, which brought a new focus on racial equity.
David Shands, an entrepreneur, investor, and podcaster, noted the shift in the culture. "It's amazing, the fact that it's cool so it's not even just podcasts, people are learning financial literacy through music," he told BLACK ENTERPRISE. "There's never been a time in history where rappers are injecting financial literacy into their music and now it's cool. The whole culture is shifting to you've got to be smarter you’ve got to be more responsible with your money. I think it’s absolutely amazing.”
There have been several influential Black people who have been investing in businesses and real estate for decades. Herman J. Russell was one of them. He bought his first property, a vacant lot, in 1946 and went on to build H.J. Russell & Co. into one of the nation’s largest black-owned construction and real estate firms. Projects built by H.J. Russell include Hartsfield-Jackson Atlanta International Airport, the Georgia Dome, Philips Arena, Turner Field, and Mercedes-Benz Stadium.
Before he passed away in 2014, Russell shared his advice for being a successful Black person in an industry with little minority participation. "Do not hesitate," Russell said. "Push for opportunity but most of all be persistent, prompt, and reliable. African Americans make up a huge percentage of the population so it is important that you work hard to increase the percentage of our participation and you should seek it as if your life depends on it."
Reginald Lewis, the late TLC Beatrice CEO, was another Black man who made a fortune investing in businesses. The Harvard-trained lawyer and entrepreneur launched his investment firm, the TLC Group, which in 1987 purchased Beatrice International Foods Cos. In the first two years of running TLC Beatrice, the company made more than $3 billion in net sales.
FUBU CEO Draymond John was another important figure in the 1990s. He sold hats on the street outside the Apollo Theatre in the early 1990s and is now a featured investor on NBC's Shark Tank. Robert F. Smith has also been an investor for more than two decades and is the CEO of Vista Equity Partners. In 2019, he made national headlines when he paid off the tuition and student loans of the graduating class at Morehouse College.
Black athletes and celebrities are also helping to make investing more popular. Serena Williams, Kevin Durant, Stephen Curry, Jay-Z, and Snoop Dogg have all started their own VC funds and are investing in minority- and women-led businesses. Wall Street veteran and finance coach Shareef “Ross Mac” McDonald has referred to this renewed interest for Black men and women as the Digital Civil Rights Movement.
These influential figures and organizations have been pushing to make investing more popular and to turn Juneteenth into a holiday focusing on financial literacy, business, and entrepreneurs for Black men and women. As the culture continues to shift, so too will the opportunities for Black investment.
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