Kevin O’Leary, the venture capitalist famous for his role on ABC’s Shark Tank, recently shared his investment strategy on LinkedIn, emphasizing the importance of cash-flowing investments in a well-balanced portfolio. O’Leary, also known as “Mr. Wonderful,” has revealed that the bulk of his family’s wealth is parked in ETFs, particularly those that focus on quality dividends and positive cash flow.
In his post, O’Leary stated, “A couple of years back, 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 parked. OUSA is part of the S&P 500, cherry-picking the highest quality balance sheets with positive cash flow from around 100 out of the 500 names. Then there’s OUSM, which grabs the Russell 2000 and weeds out the underperformers – those companies not making any real dough.”
O’Leary’s emphasis on cash flow is a reminder that while high-risk, high-reward investments like those on Shark Tank or volatile assets like Bitcoin can be exciting, the foundation of a solid investment portfolio lies in steady, reliable income. “Forget Shark Tank, forget Bitcoin. Sure, I’ve got a 5% stake in Bitcoin and another 5% in gold, but the meat of my US portfolio? It’s in OUSA or OUSM,” O’Leary added.
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The ALPS O’Shares US Quality Dividend ETF (BATS:OUSA) and the ALPS O’Shares US Small-Cap Quality Dividend ETF (BATS:OUSM) are designed to provide investors with exposure to large-cap and small-cap dividend-paying companies that exhibit quality and low volatility. These ETFs aim to offer a balance of income and growth, with a focus on companies that have strong balance sheets and a history of dividend growth.
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Adding Passive Income To Your Portfolio
For investors looking to add yield-producing assets to their portfolio, ETFs like OUSA and OUSM can be an attractive option. They offer the potential for steady income through dividends, as well as the opportunity for capital appreciation.
Investors can often find higher yields through alternative assets, which typically have a low correlation to the…
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