In this article, we discuss the 10 companies to consider in the portfolio of Kevin O’Leary for 2024. If you want to skip our overview of O'Leary's investment philosophy and learn about some more companies in his stock portfolio, go directly to Kevin O'Leary’s Stock Portfolio: 5 Stock Picks for 2024.
Kevin O'Leary, affectionately known as Mr. Wonderful to fans and fellow venture capitalists, is renowned as one of the venture capitalists on "Shark Tank" and a commentator on economic news. The Irish-Canadian kickstarted his business journey by establishing the educational software company Softkey in 1986 by leveraging the proceeds from the sale of his SET share and a $10,000 investment from his mother. This venture eventually propelled him to the forefront of the business world. Softkey specialized in producing and distributing educational software in CD format, expanding its market presence through a series of mergers and acquisitions in the early 1990s. Notable acquisitions included WordStar, Spinnaker Software, and The Learning Company, the latter of which Softkey adopted as its name following the acquisition.
In terms of investing in securities, O'Leary, Chairman of O’Shares Investment Advisors, advocates for including high-quality businesses with strong balance sheets and robust financial performance in investment portfolios. Additionally, he stresses the importance of diversification across various market sectors, with dividend payments from the companies under consideration deemed as perhaps the most vital factor. To that end, O’Shares Investment Advisors' ETF, ALPS O'Shares U.S. Quality Dividend ETF (BATS:OUSA), holds stocks embodying a blend of these three attributes. The ETF has delivered growth rates of 11.55% over the past year, 38.69% over the last five years, and an impressive 86.92% since its inception. Some notable names held by the ETF include the likes of Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Microsoft Corporation (NASDAQ:MSFT).
The venture capitalist recently outlined his investment approach on LinkedIn, stressing the significance of cash-flow-positive investments within a diversified portfolio. Here is what he said:
“A couple of years back, I sold my ETF company to Alps, the biggest ETF player in the States. It’s called O’Shares, and that’s where my family’s wealth is parked. OUSA is part of the S&P 500, cherry-picking the highest quality balance sheets with positive cash flow from around 100 out of the 500 names. Then there’s OUSM, which grabs the Russell 2000 and weeds out the underperformers – those companies not making any real dough. Forget Shark Tank, forget Bitcoin. Sure, I’ve got a 5% stake in Bitcoin and another 5% in gold, but the meat of my US portfolio? It’s in OUSA or OUSM.”
Speaking further on this, Kevin O’Leary, during his appearance on 'Good Morning America,' used some of his time to unveil a number of good stock picks for first-time investors, with The Home Depot, Inc. (NYSE:HD) being one of his recommendations. While investors widely regard the home improvement retailer as a dependable choice, O’Leary is particularly fond of it due to its substantial size, robust balance sheet, and consistent dividends. Johnson & Johnson (NYSE:JNJ) is also among O'Leary's top picks, and he holds a strong affinity for the company. "I love it," he said, highlighting the company's diversified product portfolio ranging from COVID-19 vaccines to Tylenol.
On the other hand, despite his reservations regarding Bitcoin ETFs, O'Leary acknowledges their regulatory approval as a significant milestone for the cryptocurrency industry. He believes that only a select few, particularly those backed by major industry players like Fidelity and BlackRock Inc., will thrive. O'Leary sees this as a step towards broader acceptance of digital payment systems, such as the USDC stablecoin. While exercising caution with Bitcoin ETFs, Mr. Wonderful remains optimistic about Bitcoin's future value, estimating it could reach between $150,000 and $250,000 by 2030. However, he disagrees with Ark Invest CEO Cathie Wood's more ambitious prediction of Bitcoin hitting $1.5 million by 2030, unless there is an economic catastrophe, arguing that such a rapid surge in Bitcoin's value would imply a significant downturn in the US economy.
The "Shark Tank" star also expressed concerns about the current state of the commercial real estate market, suggesting that it is on the verge of collapse. He believes that this downturn will have far-reaching consequences, particularly for investors and small business owners. O'Leary emphasized that the current situation is unprecedented, as the commercial real estate market is not anticipated to fully recover to pre-pandemic levels. Speaking to FOXBusiness, the venture capitalist made the following comments on office spaces:
“Most of these buildings were built over the last 30 years and [have mortgages with] interest rates of less than 4%,” he said. “Now the Fed has raised rates to 5.5% terminal rate, which means these mortgages are going to be refinanced at 9% to 11% — so a 3x cost. So many of these buildings won’t be economically viable.”
Kevin O'Leary's Stock Portfolio: 10 Stock Picks for 2024
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Our Methodology
In this article, we'll explore Kevin O'Leary's top 10 stock picks for 2024, which reflect his investment philosophy and offer insights into asset management. O'Leary typically favors equities of well-established, financially stable companies with strong balance sheets and a history of consistent dividend growth. The following holdings were selected from the ALPS O'Shares U.S. Quality Dividend ETF (BATS:OUSA). For these stocks, we have also provided hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
The Home Depot, Inc. (NYSE:HD), commonly known as Home Depot, stands as the leading American multinational in the home improvement retail sector, offering a wide array of tools, construction products, appliances, and services, including fuel and transportation rentals. Renowned as the largest home improvement retailer in the United States, The Home Depot, Inc. (NYSE:HD) maintains its stature through consistent dividends, currently at $2.25 per share on a quarterly basis. In February of this year, the company raised its dividend by 7.7%, marking the 14th consecutive year of dividend growth.
At the end of December 2023, 70 hedge funds in Insider Monkey’s database held stakes in The Home Depot, Inc. (NYSE:HD), compared with 76 in the previous quarter. These stakes have a total value of roughly $6 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.
Much like Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Microsoft Corporation (NASDAQ:MSFT), The Home Depot, Inc. (NYSE:HD) is one of Kevin O'Leary's favorite stock picks.
Established in 1876, Eli Lilly and Company (NYSE:LLY) stands as a distinguished American pharmaceutical entity with its headquarters nestled in Indianapolis, Indiana. Named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and Civil War veteran, the company boasts a global footprint, extending its operations to 18 additional countries.
Currently, Eli Lilly and Company (NYSE:LLY) maintains a consistent quarterly dividend payout of $1.30 per share, showcasing commendable dividend growth over the past decade. Notably, the company holds an impressive track record of 138 years of uninterrupted dividend distributions to its shareholders, which is one of the reasons why Kevin O'Leary views the company so favorably. As of April 25, the stock presents a dividend yield of 0.71%.
As of the conclusion of December 2023, Insider Monkey's database revealed that 102 out of 933 hedge funds had invested in Eli Lilly and Company (NYSE:LLY). Among these investors, Ken Fisher’s Fisher Asset Management emerged as the company's leading shareholder, with a stake valued at $2.6 billion.
Headquartered in Purchase, New York, Mastercard Incorporated (NYSE:MA) operates as a leading provider of transaction and payment processing services. Catering to a diverse clientele including account holders, merchants, financial institutions, digital partners, and businesses, the company offers integrated products and value-added services.
On February 20, investment advisory firm Morgan Stanley reaffirmed an Overweight rating on Mastercard Incorporated (NYSE:MA) stock, setting a price target of $536.
Insider Monkey's analysis of 933 hedge fund portfolios for the fourth quarter of 2023 revealed that 141 funds had invested in Mastercard Incorporated (NYSE:MA). Notably, Charles Akre’s Akre Capital Management emerged as the largest investor in the company, with holdings valued at $2.1 billion.
Based in California, Broadcom Inc. (NASDAQ:AVGO) is a renowned global semiconductor company specializing in the design, development, and distribution of various products, ranging from set-top box SoCs to networking equipment and RF semiconductor devices.
During the fourth quarter, Insider Monkey's database revealed that 91 hedge funds expressed bullish sentiments toward Broadcom Inc. (NASDAQ:AVGO), up from 87 funds in the previous quarter. Notably, Ken Fisher’s Fisher Asset Management emerged as the largest stakeholder in the company, with holdings totaling 2.13 million shares valued at $2.3 billion.
Comcast Corporation (NASDAQ:CMCSA) is a leading media, entertainment, and communications company founded by Ralph J. Roberts in 1963 and headquartered in Philadelphia, PA. The company operates across various segments, including Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky, providing video, internet, and phone services.
On January 30, analysts at Citigroup reiterated their Buy rating on Comcast Corporation (NASDAQ:CMCSA), setting a price target of $53.
According to Insider Monkey's fourth-quarter database of 933 hedge funds, Comcast Corporation (NASDAQ:CMCSA) is held by 63 hedge fund holders. Jean-Marie Eveillard’s First Eagle Investment Management emerges as the largest shareholder of the company, owning 32 million shares valued at $1.4 billion.
Comcast Corporation (NASDAQ:CMCSA) joins the ranks of Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Microsoft Corporation (NASDAQ:MSFT) as one of Kevin O'Leary's favorite stock picks of 2024.
