"It'll grow with you"— Shark Tank investor Kevin O'Leary talks about early investing

Shark Tank investor Kevin O'Leary emphasized the importance of early investing in an Instagram post on January 21, 2025. He underscored that financial literacy, particularly teaching children to invest rather than merely save, is critical for future success.

“Start investing now… it’ll grow with you,” he stated.

His belief stems from the principle that investments, unlike savings, yield compounding returns over time. The Shark Tank investor highlighted that even a modest annual contribution to the market, invested in broad indexes like ETFs, can lead to substantial growth, given an average annual return of 8–10%.

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The importance of early investing and financial literacy according to Shark Tank investor Kevin O'Leary

Why early investing is key

In his Instagram post, Kevin O'Leary underscored the necessity of integrating financial literacy into the education system, writing,

“Financial literacy in the education system in this country is a mess! It’s crazy. We should be teaching our kids about investing day one.”

He highlighted the disparity between current educational priorities and the practical knowledge young people need to manage their finances effectively, advocating for early financial education. O'Leary also emphasized the importance of starting to invest early. He underscored that savings typically offer minimal returns compared to the consistent growth of investments in the market.

He further elaborated that even individuals with modest incomes can significantly impact their financial futures. He emphasized that anyone, regardless of financial situation, can benefit from investing.

“If you have your average salary of $58,000 and you try and get 15% of it and put it away, even into a market index, an ETF or something, it’ll grow with you,” he said.

O'Leary also stressed the importance of diversification in investment strategies. The Shark Tank investor wrote,

“One rule that has worked for me for the past 30 years of investing is the rule of diversification. The opportunity is to always have a plethora of different opportunities at any given time.”

By diversifying across different asset classes and industries, individuals can mitigate risk while maximizing their chances of consistent returns. He cautioned against putting all funds into a single asset or market sector, explaining that diversification provides a safeguard if one investment underperforms, offering balance and reducing potential losses.

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Early investing lessons from Ivey Business Review interview

In a March 27, 2024 interview with the Ivey Business Review, O'Leary reflected on his career and the challenges he faced while building his businesses. He underscored how his early experiences shaped his understanding of investment and the importance of capital allocation.

He described starting Softkey Software Products in Toronto, a company that grew rapidly but ultimately moved operations to Boston due to unfavorable tax policies in Canada. O'Leary highlighted the impact of government policies on investment decisions, explaining that capital tends to flow to jurisdictions with favorable environments.

“Bad policy creates economic destruction, and that’s what’s happening in Canada right now,” he stated.

This experience underscored his belief in the need for investors to consider the broader economic and regulatory environment when making financial decisions. The Shark Tank investor also emphasized the importance of adaptability and leveraging opportunities in emerging industries.

Reflecting on his decision to pivot from producing media content to educational software, O'Leary described how this strategic shift allowed him to create and sustain significant value, ultimately resulting in his company’s acquisition. He further highlighted the necessity for businesses to operate in favorable environments to maximize their growth potential.

“Capital always finds the path of least resistance,” he said.

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For more business insights and to see Kevin O'Leary in action, catch Shark Tank airing Fridays at 8/7c on ABC. Fans can also stream episodes on Hulu.