Sometimes the best investment ideas come from being cheap in exactly the right way. That's what happened when Shaquille O'Neal got quoted $80,000 to install security cameras at his Atlanta home and decided that seemed, well, insane.

The Setup That Started Everything

In a 2019 CNBC interview, O'Neal explained his thought process. Instead of dropping eighty grand on a security system, he went with Ring and installed 10 to 15 cameras for roughly $2,000. That's a 97.5% cost savings, for those keeping score at home.

Here's where it gets interesting. After actually using Ring's cameras and realizing they worked great at a fraction of the price, O'Neal did what savvy investors do: he backed the company with real money. He met Ring's CEO Jamie at a Las Vegas conference and told him he wanted to help grow the business. O'Neal put $1 million into Ring, betting that other people would appreciate the same value proposition he'd discovered.

The Billion-Dollar Exit

That bet paid off spectacularly. In 2018, Amazon Inc. (AMZN) acquired Ring for an estimated $1 billion, turning O'Neal's investment into one of his most profitable plays outside of basketball.

O'Neal's investment philosophy is straightforward: he invests in products he actually believes in and uses himself. This strategy has helped him build a $500 million net worth and establish himself as a legitimate investor, not just an athlete with money to throw around. When you start by saving yourself $78,000 and end up making millions, it's hard to argue with the approach.