invezz.com
Shark Tank star and Canadian investor Kevin O’Leary has invested nearly 10% of his portfolio in digital assets. He disclosed this news during a Reddit talk session on November 11, noting that he had increased his crypto exposure significantly, seeing as digital asset holdings only comprised 3% of his portfolio at the start of 2021.
According to O’Leary, his goal was to increase his exposure to around 7% before the end of the year. However, the appreciation of assets he had invested in increased the net crypto holdings in his portfolio to approximately 10%.
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O’Leary declined to disclose all digital assets he has invested in, saying he owns Bitcoin (BTC/USD), Ethereum (ETH/USD), and USD Coin (USDC/USD). While the Shark Tank star claims to have invested in a panoply of coins, it is worth noting that he has also invested in products and companies in the industry.
Bullish about the performance of his crypto holdings, O’Leary said,
So, we’re going to end up at the end of the year with a very significant holding in crypto assets, and it’s not just bitcoin.
Diversification is key
O’Leary admitted to owning a lot of ETH but disclosed that he believes in some of its competitors. He noted that some people believe the game is over because of the levels ETH has reached. However, there are many alternatives, including Solana (SOL/USD), which investors can purchase to diversify their portfolios.
Sharing the criteria he uses while investing in crypto, the renowned investor said,
I am a software investor. I am going to put an allocation into the software of crypto because I believe it will change and be disruptive to a lot of different markets all around the world.
He added that he does not analyze the pros and cons of digital assets while gauging whether they are ideal investments. Instead, he looks to identify the best teams and developers and how to invest in their projects. He also considers the ledger that a specific coin runs on.
His investing approach is similar to that of Mark Cuban, a Shark Tank co-star and the owner of the Dallas Mavericks. According to Cuban, he invests in cryptos based on their utility. In a recent podcast, he said the race between blockchains all comes down to applications and integrations.
Like other experts, Cuban and O’Leary recommend investing only what one can afford to lose when it comes to crypto. O’Leary reiterated that diversification is key for crypto investors.