Kevin O’Leary reveals his top surprising wealth ‘stabilizer’ — plus why he’s breaking his own rule and buying more
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“Shark Tank” investor Kevin O’Leary has made several headline-making bets on the popular reality TV show. But when it comes to what he considers one of the best investments of all time, it’s no flashy venture or high-tech gadget. In fact, it’s something anyone can buy.
“People always ask me about my best investments, and everyone is surprised when I tell them gold is one of my best investments of all time,” O’Leary said in a recent post on Instagram. (1)
This might seem like an unexpected thing from a man who has championed everything from culinary innovations to cat DNA testing and made many lucrative ventures along the way. Gold, by contrast, is a centuries-old store of value that has helped people preserve their wealth for thousands of years.
“I like gold because it’s a stabilizer in a way, it’s an insurance policy,” he explained. “I’ve owned gold for decades, and it’s popular for many reasons. It’s worked well for me in portfolio management. It’s the only security I own that doesn’t pay dividends.”
Although gold does not generate income like dividend-paying companies, it has a timeless appeal. Unlike paper money, gold cannot be printed at will by central banks; This makes it a natural hedge against inflation. It is also widely viewed as the ultimate safe haven asset. Gold is not tied to any country, currency or economy, and when financial markets become unstable or geopolitical tensions flare up, investors often flock to it, causing prices to rise.
Gold prices have increased by more than 50 percent in the last 12 months.
But instead of making a profit, O’Leary doubles down.
O’Leary says staying on top with gold has yielded very good results.
“It hit all-time highs and I’m still buying, but why? Because if I had stopped buying at the all-time high of $2,078 in 2023, I would have missed a huge opportunity.” [around] “An 82.7% return was achieved in just 2 years,” he said, and continued: “Luckily, I have been buying gold for decades, even at an all-time high.”
Gold’s strong rise in recent years has enabled the metal to pass important milestones; first $2,000 per ounce, then $3,000, and finally $4,000. And O’Leary isn’t the only heavyweight investor to rave about it.
Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund said CNBC noted earlier this year that “people often don’t have enough gold in their portfolios,” adding that “gold is a very effective diversification tool when times get bad.”
One way to invest in gold, which also provides significant tax advantages, is to open a gold IRA. Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account; This combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide with details on how to do it. Get up to $20,000 in free metal About qualified purchases.
Read more: Warren Buffett says you can’t buy time – but real estate investors found this 1 gap. See how they turn back hundreds of hours a year (completely free)
O’Leary has long been known for his passion for cash flow; Therefore, gold stands out as the only asset he owns that does not pay dividends. This belief stems from what he once called a turning point in his investing philosophy.
“When I started doing some research, I discovered an interesting fact that changed my investing philosophy forever,” he said in the Forbes interview. (2) “71% of market returns over the last 40 years have come from dividends, not capital appreciation.”
O’Leary didn’t explain the math behind that figure, but the result became a golden rule for him; gold was the only exception. “So rule number one for me is I will never own something that doesn’t pay dividends. Never,” he said.
Dividend income and generally stable cash flow can be a strong buffer in turbulent markets. Even when stock prices decline, investors with quality dividend-paying assets can continue collecting income, giving them both a tangible return and peace of mind to weather the storm.
Today, many sectors offer income-generating opportunities. Real estate is a classic example: When you own a rental property, tenants pay you rent every month, providing a steady cash flow. This is also a time-tested hedge against inflation, as both property values and rental income tend to rise with the cost of living.
Of course, buying a property requires a significant amount of capital and finding the right tenant takes time and effort. However, thanks to new investment platforms reachedYou do not need to own a property directly to invest in real estate.
Backed by A-list investors like Jeff Bezos, Arrived lets you invest in rental home stocks with as little as $100, without the hassle of mowing the lawn, fixing leaky faucets, or dealing with difficult tenants.
The process is simple: Browse selected home options examined for their appreciation and income potential. Once you find a property you like, select the number of shares you want to purchase and sit back as you start receiving positive rental income distributions from your investment.
For investors looking to receive monthly dividends, the platform also offers: Special Credit Fund ArrivedIt allows you to invest in short-term loans that finance real estate projects such as renovations, property rehabilitation, or even new home construction.
The fund generates cash returns by collecting interest payments on loans and distributing monthly payments to investors. All of the loans are secured by homes as collateral, so even if borrowers default, the underlying property can be sold to keep the fund healthy.
Another option is home sharesIt provides accredited investors access to the $35 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
Home Shares allow accredited investors to gain direct access to a portfolio of owner-occupied homes in leading U.S. cities through the U.S. Home Equity Fund, without the hassle of purchasing, owning or managing property.
The fund focuses on homes with significant equity, using Home Equity Agreements (HEAs) to allow homeowners to access liquidity without taking on debt or interest payments. This creates an attractive, low-maintenance investment vehicle for retirement savers with a minimum investment of $25,000.
The U.S. Home Equity Fund offers investors access to America’s largest store of household wealth, with a risk-adjusted target return of 14% to 17%.
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