Tupac's pov
Tupac had always been someone who understood the importance of finance, especially after his rise to fame. But his thirst for knowledge had taken him a step further—he started diving deep into books on financial strategy, taxes, and investments. By end of 1989, he wasn't just about rapping; he was thinking about his money, how to make it work for him, and how to avoid giving too much of it away. He understood how to play the game, and he was about to teach Lydia a lesson that would change the way she saw investments.
Tupac and Lydia are seated across from each other in a sleek, private office. Tupac leans forward, a bit more relaxed than usual as he explains his strategy.
Tupac: "Alright, Lydia, let me break this down for you. You see, when I sold you those shares, that $2 million? That's for the 20% of the label. But now, to keep the label afloat, I need to invest $800,000 back into the company. We need to fund the operations, pay the staff, pay the salaries, all that. It's business."
Lydia: Nods slowly, processing what Tupac's saying "Yeah, but what about the money I bought the shares with? The $2 million... isn't that what I'm putting in?"
Tupac: Smiles, shaking his head "No, no, no. See, that's where you're missing the point, Ms. Lydia. Let me give you a perfect example. Let's say you sold 10% of your share to one of your friends, right?"
Lydia: Nods again "Right. I get that."
Tupac: "Now, your friend gives you the full amount for that share, let's say $200,000, and it's all cash. Now, are you going to take all that cash and give it straight to the label, or are you gonna keep it for yourself?"
Lydia: She laughs, realizing the comparison "Ohh, hell no. I'm not giving all that money to the label."
Tupac: Leans back in his chair "Exactly! You keep that money for yourself, right? Now, the exact same thing applies here. The $2 million you put in—that's for the shares I sold to you. When we raise another $1 million, based on your share, you need to put in your part. If you don't, your percentage will drop."
Lydia: Her eyes widen in realization "So, you're saying that if I don't put in my $200,000, my share will decrease?"
Tupac: Nods "Exactly. You gotta put in your fair share if you wanna maintain your stake in the label. Otherwise, I'm holding a larger percentage, and I'm running this show."
While Tupac was focused on keeping Death Row running smoothly, he wasn't neglecting his side hustles. He had been reading about how to legally avoid high taxes and how to make his money work for him. Tupac knew that after earning more than $2 million from his music career, he needed to be smart with his income.
In January 10th 1990, Tupac started investing in the stock market. He had already learned that diversifying his assets would protect him financially in the long run. Here's a breakdown of the investments he made:
Investment Portfolio
Microsoft (MSFT): Tupac purchased $400,000 worth of Microsoft shares in 1990 when the stock was priced around $21 per share. This gave him around 19,000 shares. Microsoft was a company on the rise, and Tupac knew it had potential.
Apple (AAPL): He also bought $400,000 in Apple, which was priced around $3.50 per share at the time, giving him around 114,000 shares. Apple was beginning to gain ground, and Tupac saw the long-term value.
Other Investments: With the remaining $400,000, Tupac spread his investments into companies like Intel, IBM, and Oracle, which were all in a growth phase during the early 90s. His portfolio was starting to look solid.
Strategic Planning: With his lawyer Marcus's help, Tupac learned how to use his investments to shield a good portion of his wealth from heavy taxes. By investing in stocks, he was able to grow his money while avoiding paying exorbitant amounts of tax on the income he earned.
Tupac's focus on finances wasn't just about growing his personal wealth. He was also fully aware of the situation at Death Row. The label needed funds to keep operations running smoothly—employees needed to be paid, records had to be produced, and the label's infrastructure needed support. That's why the $1 million fundraiser was crucial.
Tupac sat across from Lydia in the same sleek office where they'd discussed the investment. It wasn't just about Death Row anymore; it was about Tupac becoming his own boss, fully in control of his creative and financial future.
Tupac: Leaning back, flipping through a contract "Alright, Lydia. Let's make this official. We've already laid the groundwork for the label. Now it's time for me to lock down my own deal."
Lydia: Raises an eyebrow "I'm listening. What's your plan, Pac?"
Tupac: Slides a contract across the table, pointing to the key terms "Here's the deal: I'll sign a five-album deal with Death Row. I'm putting up my own money to run the label, but we've got to structure this right. I want $500,000 as an advance for each album, and 30% royalties on everything I produce, but here's the kicker—the masters, they stay with the label for the first 10 years."
Lydia: Furrows her brow "You're giving the label control of the masters for 10 years? That's a long time, Pac. Are you sure about that?"
Tupac: Leans in, confident "Yeah, because it's a fair trade. I'm not just signing for the money. I'm thinking long term. The way I see it, if Death Row owns the masters for 10 years, that gives the label time to recoup the investment, and after that, the masters come back to me."
Lydia: Nods, clearly impressed by Tupac's foresight "That's a pretty solid deal. You get control of your music after a decade, and we both know Death Row will be making money off it for years, even after the 10 years are up."
Tupac: Smirks "Exactly. After that, all the royalties and revenue from those songs come back to me. And I'm not just talking about the money, Lydia—I'm talking about building a legacy. A decade of owning my own music is a fair trade-off for what we're building right now."