"Two asset classes" - Shark Tank's Kevin O'Leary describes how his mother influenced all his investments

Kevin O'Leary, the Shark Tank investor, is known for his bold persona and uncompromising business principles. However, his recent post on Instagram reveals how his mother had a powerful influence on who he is today and shaped his financial outlook.

Georgette, his mother, believed in investing and then only taking out the profit for emergencies at home, and never the principal amount.

Kevin, recalling her legacy, said that she was not an analyst professionally, but her instincts for money management were masterful. He said that she had a disciplined and consistent investment strategy even before these practices were widely known at the time.

From her monthly income, she would invest 15% to two asset classes. The first one is Telco bonds, and the remaining in dividend-paying stocks in the S&P 500. Seh did not bet, but made observations and acted upon the same.

Explaining, the Shark Tank investor said,

"My mother really influenced all my investment decisions and basically who I am. Georgette would take 15% of her salary and invest it in two asset classes. But remember, she is not an analyst. She bought Telco bonds for 50%. And these were 5 to 7 years bonds, generating, you know, those days, 7 or 7.5%."

Continuing, he explained,

"And then she bought dividend-paying stocks. Big dividend-paying stocks from the S&P 500. And, her philosophy was that people will freeze themselves, they will turn their electricity off before they turn their phone off. They love to talk. I mean, her philosophy was 'No more than 5% in any one stock. No more than 20% in any one sector."

Shark Tank investor Kevin O'Leary reveals how his mother invested, which shaped his decisions as well

Kevin, the Shark Tank personality, revealed that there were 10 sectors at the time, and real estate was added later to the list. This diversification philosophy protected her from any volatility in one particular sector while also maintaining a healthy exposure to the market growth.

Another fact was that Georgette, his mother, never told a single soul about her portfolio at all. It wasn't until her passing that Kevin got to know about the wealth she had accumulated after all these years.

The shock was evident as he and his brother never understood where she got the money from, but now they finally know the source. Her philosophy, Kevin says, was,

"I always wondered how she paid for everything, like you know, my college and helping me out and stuff, and both of our sisters and their husbands. She never touched the principal, only the interest off the Telco bonds and the dividends.

He added,

Her returns were insane over 55 years. She caught the market then some. That's O'Shares. I designed the whole platform around Georgette's philosophy, and that's the only thing I buy for my family trust."

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Shark Tank season 16 episodes release weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.

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