'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
Shark Tank investor Kevin O'Leary took to Instagram on February 23, 2025, to share a reel where he revealed details about his mother's financial strategy. He noted that this was what allowed her to build significant wealth over six decades. He described his mother as a "fiercely independent woman," who wanted "financial independence for the rest of her life" after her divorce from her husband. It is worth noting that her first husband was also Kevin O'Leary's biological father.
"She went through a very difficult first marriage to my biological father, and it ended in divorce. From that experience, she wanted to have her own financial independence for the rest of her life," the investor noted.
Despite not being a finance professional, she followed a disciplined approach to investing that ultimately secured her financial independence. O’Leary explained that she followed a strict investment strategy, allocating 20% of every paycheck into dividend stocks and bonds.
Trending
When she passed away, O’Leary was initially surprised to learn from the executor of her estate that she had accumulated substantial wealth. He noted that she had spent only the interest and dividends from her investments, allowing her portfolio to compound over time.
Shark Tank mentor shared his mother's investment approach
In his latest reel, Shark Tank investor Kevin O'Leary highlighted how his mother allocated 20% of her paycheck to dividend stocks and bonds. He added that she followed a strict diversification rule of no more than 5% in any single stock and no more than 20% in any sector.
"She took 20% of her paycheck each week and invested it in stocks and the SIP that paid dividends and telco bonds. She had that portfolio for 62 years," he shared.
In the reel, O’Leary recalled the moment he learned about her accumulated wealth after she passed away. The Shark noted that her executor called him since he was the elder sibling and asked to meet him. Kevin explained that the executor told him that his mother "died a very wealthy woman."
"Your mother died a very wealthy woman.' I said, 'I don’t think so. We’re a middle-class family.' I saw what she’d done—she had only spent the interest or the dividends, so this thing grew over 60 years at 8, 10, 15, 20% a year," the investor noted.
Shark Tank mentor Kevin O'Leary captioned the post saying that his mom was not a "stock analyst" but just a working woman. He wrote that when she died, she was rich, noting that he "built an ETF around" the strategy that she used.
A long-term investment strategy by Kevin O'Leary's mother
Further insights into O’Leary’s mother’s financial strategy were detailed in an International Business Times article published in November 2024. The article highlighted how Shark Tank's O’Leary discovered his mother’s hidden wealth and the key investment principles she followed for decades.
Telco bonds were an important component of her portfolio at the time, yielding consistent yields of 6 to 7%. The remaining half of her investments were allocated to S&P 500 dividend stocks.
The S&P 500 was introduced in 1957, providing an opportunity to invest in a diverse index. Historically, this index has had an annual return of around 10.5%. The accumulation of substantial wealth was the result of this strategy over time.
The Shark Tank investor's mother's investment strategy focused on dividend securities from corporations such as Exxon Mobil and Coca-Cola. These companies, known as "dividend aristocrats," have consistently increased their payments for over 25 years.
By putting passive income ahead of short-term gains, she ensured financial stability and growth without taking on too much risk. The significance of asset allocation in long-term investing is highlighted by financial experts. A lot of investors follow the "100 minus age" formula, which recommends that stock and bond allocations be adjusted in accordance with age.
New episodes of Shark Tank season 16 are aired on ABC every Friday.
