Kevin O’Leary: The Money Is ‘Not in Bitcoin’ — Here’s What You Should Invest In
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Chris Adam
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Nicholas Morine
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Cash flow. If you’re a fan of “Shark Tank” or follow Kevin O’Leary, you’ve likely heard him talk about the importance of cash flow. In a recent video he posted to LinkedIn, O’Leary spoke again about its importance and said that’s especially true in today’s unpredictable markets.
In the video, O’Leary talked about where he puts “the meat” of his U.S. portfolio. He said it’s in O’Shares U.S. Quality Dividend ETF (OUSA) or O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM). It should be noted that O’Leary is the chairman of O’Shares Investments, which provides the indexes behind said ETFs.
They are both part of the ALPS Funds, which O’Leary called the biggest exchange-traded fund (ETF) player in the United States. ETFs have become pillars of the investment world since they debuted in the 1990s.
According to CNBC, more than 16 million households in the United States held ETFs in 2022. There are a few reasons many investors prefer ETFs over other options like mutual funds. In general, they are more tax-efficient options and often have lower costs.
O’Leary on OUSA and OUSM ETFs
According to O’Leary, OUSA, which is part of the S&P 500, is good because it’s “cherry-picking the highest quality balance sheets with positive cash flow from around 100 out of the 500 names.” Similarly, O’Leary said he likes OUSM, “which grabs the Russell 2000 and weeds out the underperformers — those companies not making any real dough.”
O’Leary called them “the backbone” of his family trust. Why? He said it’s because they churn out distributions every month and provide cash flow.
O’Leary said they’re quite boring investments — they’re steady with less volatility, market returns and minimal drawdown. But he said that’s where the real cash lies. While O’Leary has a stake in Bitcoin (and in gold), he said the real cash lies in steady investments like OUSA and OUSM.
According to O’Leary, “You need companies that walk the talk, not just hype machines. Cash flow is king, my friends.”
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