- Shark Tank star and billionaire investor Kevin O’Leary has launched his latest crypto investment strategy after volatility affecting most asset classes. sharing.
In a new interview on the Bankless podcast, O’Leary said: cryptocurrency explains how it follows the general rules of portfolio theory when allocating capital for unit investments.
“I’ve been layering for 36 months. I started with 2.5 percent, went up to 7 percent, and then we went over 15 percent.
In portfolio theory, if you’re managing a mandate like a government fund, let me show you the rules by which those big players play. I use the same philosophy for crypto
We have 11 sectors in the S&P 500. Portfolio theory tells you that you should never invest more than 20% in any industry and never more than 5% in stocks or bonds. This is diversification and basically 99% of government wealth is managed this way by indexers like me and myself.”
I did the same thing with crypto.”
The venture capitalist then Bitcoin (BTC), Ethereum (ETH), US Dollar Coin (USDC)layer-2 scaling solution Polygon (MATIC) and layer-1 blockchain protocol Left (LEFT) He shared how he structured his crypto investments on a percentage basis before sharing his various holdings such as
“I believe that in ten years, cryptocurrency will be the 12th largest sector of the economy because it provides a lot of liquidity, a lot of efficiency, a lot of transparency and a lot of auditability, which is way better than the expensive and slow system we’ve been up to so far. This means I can invest up to 20% of our working capital in the cryptocurrency market. Then you also want diversification, so I basically did that.
My biggest holdings right now are Ethereum and Bitcoin, which is no big surprise. But I also have a large position in USDC, I also have a large position in stock in FTX, which is a private company.
And then comes Polygon. Sandeep [Nailwal] We started a relationship with, I really liked his story… Trying to lower gas fees on Ethereum is a very sensible idea for India and other countries like it.
I also really like what goes on in all of the serum projects. Solana, I’m a big fan of what Sam Bankman-Fried has done.”
O’Leary also stresses the importance of keeping diversified assets within an investment portfolio to help weather the storms when markets are volatile.
“All of this makes sense to me in terms of diversification rates. That portfolio was at about 21 percent about eight weeks ago, now it’s down to about 18 percent. The market has had a significant correction, but you have to hold your breath and put up with the volatility.”
When it comes to stablecoins, which are crypto assets that aim to peg their value to fiat currencies like the US dollar, the Shark Tank investor says the government is quite impatient to provide regulatory clarity once and for all.
“While I’m in Washington, I try to make some policy. Give me something, give me a policy on stablecoins and let the market compete.
Since I have a lot of money on my operational firm balance sheets and nowhere to invest it, I can put a lot more money into this space. Inflation is 6%, 7% and 8% respectively and I only get 45 basis points in a bank.
This is really crazy. I can do so much more with stablecoins.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.