Is there “Schmuck Insurance” on Run’s House? Russell Simmons’ Investing Term You Should Know
During my JetBlue flight to NYC last month, to attend the Inman Connect NYC 2008 real estate & technology conference, I watched a couple of episodes of Run’s House. If you haven’t seen it, it’s an MTV reality show that chronicles the daily lives of Rev. Joseph Simmons, a.k.a. “Run” from the rap group Run DMC. Rev. Run is the youngest brother of hip hop and business mogul Russell Simmons.
In one episode, Russell extends to Rev. Run the opportunity to invest a couple million dollars in a hip hop Web 2.0 venture, GlobalGrind.com. Run balks at the amount, and also at the fact that the web space is completely outside of his comfort zone. Despite Russell’s extensive market research into the opportunity and track record of startup success, Run remains undecided about the opportunity until his wife and youngest son check the site out and encourage him to get in.
Before Rev. Run agrees to invest, Russell reminds Rev. that Russell set aside a number of shares for his family and friends as “schmuck insurance.” Huh? Russell then defines schmuck insurance as shares of an investment you offer to those close to you, so that when you make a fortune on it, they won’t be left standing there with nothing - “like a schmuck.”
Anyone out there offering schmuck insurance to their friends and fam who are trying to ”wait for the bottom” of this real estate cycle?
