Most of us think about investing in very practical terms.
Index funds. Real estate. Maybe a little crypto if we’re feeling adventurous.
But what if investing could also be joyful?
What if your portfolio included something that made you excited every time you thought about it?
In this episode of Earn & Invest, I sit down with Tony Award–winning Broadway producer Ken Davenport to talk about a fascinating corner of the investment world: Broadway shows.
Ken calls it passion investing.
And the more we talked, the more I realized that Broadway investing may be one of the purest examples of this idea.
Investing in a Show Is Like Investing in a Startup
When most people hear “Broadway investing,” they imagine wealthy patrons writing six-figure checks just to get their names in a Playbill.
But the reality is more interesting.
Ken compares investing in a Broadway show to investing in a startup company.
Every show is essentially a brand-new product trying to penetrate a crowded marketplace. The producers assemble a team, develop the concept, and hope audiences respond.
Just like startups, the risk is high.
Historically, only about one in five shows fully recoups its investment.
That’s not exactly comforting.
But the upside can be extraordinary.
When a show hits—think Wicked or The Lion King—it can become something like an annuity. Successful productions spin off national tours, international productions, and long-running revenue streams that can pay investors for years.
The potential payoff isn’t just emotional.
It can also be financial.
Getting Into Broadway Investing
Most Broadway investing happens among accredited investors, but it’s far more accessible than many people assume.
Ken says the best way to get started is surprisingly straightforward: network with producers.
Look at the top producers listed in a Playbill. Find them on LinkedIn. Reach out. Introduce yourself. Let them know you’re interested in investing.
It’s not glamorous.
But it works.
And while many people assume Broadway investing requires hundreds of thousands of dollars, the typical investment is often between $25,000 and $50,000.
For Off-Broadway productions, it can be even lower—sometimes around $10,000.
In other words, it’s still serious money.
But it’s not as out of reach as many people think.
How the Money Works
Broadway shows are structured to prioritize the investors.
Before anyone else sees profits, 100% of revenue goes back to the investors until their initial capital is recouped.
Only after that point do the profits split.
And the split is straightforward: 50% to investors and 50% to producers.
Of course, that assumes the show makes money.
And many don’t.
Ken shared an example from one of his productions of Macbeth, which returned 91% of investor capital. Not a complete recoupment, but far from a disaster.
The reality is that Broadway investing exists somewhere between venture capital and entertainment.
You place a bet on a creative idea and hope it connects with an audience.
How Producers Evaluate a Show
Ken has developed his own due-diligence framework for evaluating whether a production might succeed.
He calls it the “who, what, when, where, why, and how much” approach.
He studies the creative team’s track record.
He looks closely at the economics of the production.
But perhaps most importantly, he tries to determine whether the story connects with something audiences are already feeling.
He gave the example of Dear Evan Hansen—a show that captured a generation’s hidden struggles with isolation and anxiety.
In Ken’s words, the best shows feel like they are reading the audience’s mind.
Treat It Like a Casino
Despite all the analysis, Ken is blunt about the risks.
When you write a check for a Broadway show, you should treat it like you’re walking into a casino.
There is a very real chance you’ll never see that money again.
That may sound terrifying from a traditional investing standpoint.
But Broadway investing isn’t purely about financial returns.
It’s also about experience.
The Emotional Return
If a show succeeds—or even if it simply makes it to opening night—the perks can be incredible.
Investors get access to glamorous premieres.
They meet the cast.
They sit in on rehearsals.
They network with producers, actors, and other investors.
In many cases, the experience itself becomes the real reward.
And if you invest enough—or help raise enough capital—you can even become a co-producer.
That usually requires around $250,000 in investment, though Ken noted that people sometimes pool funds with friends.
The reward?
Your name goes above the title.
And if the show wins?
You could be holding a Tony Award.
Alternative Investments and the 3–5% Rule
In the after-show, I shared a broader thought about investments like Broadway.
These types of opportunities fall into what we typically call alternative investments.
They’re unique. They’re illiquid. And they carry significant risk.
Because of that, they probably shouldn’t dominate your portfolio.
As a general rule, I think alternatives should represent no more than 3–5% of your total investments.
They can add diversification and sometimes offer exponential upside. But they’re best used carefully—especially during the decumulation phase when your focus shifts toward stability and thoughtful allocation.
Still, there’s something powerful about investing in things you truly care about.
Winning Even When You Lose
Here’s the thing.
If you invest in something you’re passionate about—Broadway shows, baseball cards, art, or any other alternative asset—you may lose money.
But you’ll probably gain something else.
You’ll gain stories.
Experiences.
Memories you wouldn’t have had otherwise.
And in a strange way, that means you might still win the game.
Even if the investment itself doesn’t.