Kevin O’Leary, a renowned venture capitalist and a contestant on ABC’s hit show Shark Tank, shared his investment strategy, calling for a focus on cash flow investing in well-balanced portfolios. O’Leary, also known as “Mr. Wonderful,” emphasized that the bulk of his family’s wealth is invested in ETFs, especially those that focus on quality dividends and positive cash flow.
In a post on LinkedIn, he noted: “A couple of years ago I sold my ETF company to Alps, the biggest ETF player in the States. It’s called O’Shares and that’s where my family’s wealth is stored.” O’Leary added that the key to a balanced portfolio is ETFs like OUSA and OUSM, which highlight quality companies with positive cash flow from the S&P 500 and Russell 2000, respectively.
Emphasizing the importance of cash flow in investing, O’Leary noted that while high-risk investments like being on Shark Tank or volatile assets like Bitcoin are attractive, the core element of any balanced portfolio is stable, reliable income.
O’Leary also expressed confidence in passive income investing, emphasizing it as one of the most reliable methods of weathering a recession. The ALPS O’Shares US Quality Dividend ETF (BATS: OUSA) and ALPS O’Shares US Small-Cap Quality Dividend ETF (BATS: OUSM) provide investors with the opportunity to invest in large- and small-cap companies that exhibit quality and low volatility.
In conclusion, O’Leary emphasized that passive income investing is one of the most effective recession-proofing methods. He urged investors to remember the importance of stable income when building their portfolios, noting that this is the basis for successful investments on a long-term basis.
