Kevin O'Leary's Way of Investing
Kevin O'leary is a multi millionaire and founder of O'leary Financial Group. He is one of the shark in the popular TV reality show "Shark Tank". His method of investing encompass wealth preservation and value yield investing.
His philosophy of investing is: Never invest in a security that doesn't pay you dividend and never spend your principal, only the interest. Trends doesn't concern him. Every single stock that makes up his portfolio pays a dividend(except gold). No matter how good a stock is, if it doesn't pay dividend, he will not be interested. His portfolio percentage is 66% debt and 34% equities. For gold, he maintain 5% weighting quarterly in his portfolio. Sell into strength, buy into weakness and always make sure it is maintained at 5%.
He told the interviewer that he is discipline in maintaining "no more than 5% weighting in any stock and no more than 20% weighting in any sector". Which means he doesn't exceed 5% holding of any stock, even those favored by him. Within a sector, he does not exceed 20% holdings combined within it. It is his way of diversification. This means his portfolio is evenly spread out and not sector heavy. He said this method of his has saved him many times before.
Quite an interesting interview. His investing philosophy I find, is more towards defensive value investing, with a strong focus on dividend payout.