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“Shark Tank” investor Kevin O’Leary has made many headline-grabbing bets on the popular reality TV show. But when it comes to what he considers one of his best investments of all time, it’s not a flashy startup or a high-tech gadget. In fact, it is something that anyone can buy.
“People always ask me about my best investments and everyone is surprised when I tell them that gold is one of my best investments of all time,” O’Leary said in a recent Instagram post. (1)
That might seem unexpected coming from a man who has endorsed everything from kitchen innovations to DNA testing for cats, and has scored many lucrative outlets along the way. Gold, on the other hand, is a centuries-old store of value that has helped people preserve wealth for thousands of years.
“I like gold because in a way it is a stabilizer, it is an insurance policy,” he explained. “I’ve owned gold for decades and gold is popular for a lot of reasons. It has worked for me in portfolio management. It’s the only security I own that doesn’t pay dividends.”
While gold doesn’t generate income like dividend-paying companies, it has timeless appeal. Unlike paper money, central banks cannot print gold at will, making it a natural hedge against inflation. It is also widely considered to be the ultimate safe haven asset. Gold is not tied to any particular country, currency or economy and when financial markets become volatile or geopolitical tensions flare, investors often flock to it, driving up prices.
In the last 12 months, gold prices have risen more than 50%.
But instead of turning a profit, O’Leary is doubling down.
O’Leary says keeping gold at its peaks has paid off well.
“It has reached all-time highs and I continue to buy, but why? Because if I had stopped buying in 2023, at its all-time high of $2,078, I would have missed out on a return (around) 82.7% in just two years,” he said. “Luckily for me, I’ve been buying gold for decades, even at all-time highs.”
Gold’s powerful rally in recent years has propelled the metal past key milestones: first $2,000 an ounce, then $3,000 and, most recently, $4,000. And O’Leary isn’t the only major investor singing his praises.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that “people generally don’t have an adequate amount of gold in their portfolio,” adding that “when bad times hit, gold is a very effective diversifier.”
One way to invest in gold that also offers significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially protect their retirement funds against economic uncertainties.
For more information, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Read more: Warren Buffett says you can’t buy time, but real estate investors have found this loophole. See how they buy back hundreds of hours a year (completely free)
O’Leary has long been known for his love of cash flow, which is why gold stands out as the only asset he owns that doesn’t pay dividends. That conviction stems from what he once called a turning point in his investment philosophy.
“When I started doing some research, I discovered an interesting fact that changed my investing philosophy forever,” he said in an interview with Forbes. (2) “Over the last 40 years, 71% of market returns came from dividends, not capital appreciation.”
O’Leary didn’t break down the math behind that figure, but the conclusion became a rule of thumb for him, with gold the only exception. “So the first rule for me is that I will never own things that don’t pay dividends. Never,” he said.
Dividend income (and steady cash flow in general) can be a powerful cushion during turbulent markets. Even when stock prices fall, investors who own quality dividend-paying assets can continue to earn income, providing them with a tangible return and peace of mind during 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 each month, providing a steady flow of cash. It is also a proven hedge against inflation, as both property values and rental income tend to rise along with the cost of living.
Of course, purchasing a property requires significant capital and finding the right tenant takes time and effort. But thanks to new investment platforms like Arrived, you don’t have to own a property outright to gain exposure to the real estate sector.
Backed by world-class investors like Jeff Bezos, Arrived lets you invest in rental home stocks with as little as $100, all without the hassle of mowing the lawn, fixing leaky faucets, or dealing with difficult tenants.
The process is simple: browse a select selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you would like to purchase and then sit back as you begin receiving positive rental income distributions from your investment.
For investors looking for monthly dividends, the platform also offers the Arrived Private Credit Fund, which allows them to invest in short-term loans that finance real estate projects, such as renovations, property rehabilitations or even new home construction.
The fund generates cash returns by collecting interest payments on loans and distributing monthly payments to investors. All loans are secured by residential homes as collateral, so even if borrowers default, the underlying property can be sold to keep the fund healthy.
Historically, Arrived Private Credit Fund has paid annualized dividends of 8.1% to investors.
Another option is Homeshares, which gives accredited investors access to the $35 trillion US real estate equity market, a space that has historically been the exclusive playground of institutional investors.
Homeshares allows accredited investors to gain direct exposure to a portfolio of owner-occupied homes in major U.S. cities through its US Home Equity Fund, without the hassle of purchasing, owning or managing properties.
The fund focuses on homes with substantial value and uses 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.
With target risk-adjusted returns of 14% to 17%, the US Home Equity Fund offers investors access to the largest pool of US household wealth.
And for a limited time, Homeshares is giving Moneywise readers an exclusive 5% bonus on IRA investments.
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@kevinolearytv (1); @Forbes (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
