One of the great things about being a qualified business person is taking risks and not only investing in others but investing in yourself. In the black community we want everything here and NOW and we don’t often see the advantages of what’s coming down the road. When it comes to the stock market, for example, someone’s name and reputation attached to a brand can make or break it. Oprah Winfrey made a decision to purchase 10% of the previously fledgling Weight Watchers company. The company had been suffering as many older companies are today, against the backlash of modern technology where a app like Myfitnesspal.com does exactly the same thing that Weight Watchers does for FREE. Weight Watchers became a dated company overnight with little appeal. The company also failed to brand itself outside of suburban housewives for decades. They had a formula, it worked and they stuck with it even after it didn’t work, this is one of the gravest mistakes of any small business and corporation, refusing to change with the times.
Winfrey paid $6,352,103 at $6.79 a share for the stock. At that point, once the announcement was made, the stock doubled on Monday then skyrocketed by another 32% on Tuesday last trading at $18.37 a share. This means Oprah has now made $73 Million on the deal in less than 36 hours. She has an additional option to buy 3,513,468 more shares at the original price which would bring her earnings up to $112.6 million.
Chances are, Oprah will bring her team in and revamp the company as she is now also on the board of directors. Having her name attached alone should maintain a good price for the stock until those changes take place. I purchased shares in the company at $5.90 about a month ago and of course I wish I would have purchased more.