Kevin O'Leary Says Here's Where to Put Your Money Right Now: 'Go Where People Hate It'
The "Shark Tank" star says the energy sector is "looking golden" when it comes to the latest investment trends.
Kevin O'Leary is advising entrepreneurs to put their money into energy to add more green to their pockets.
"I love energy. Everybody hates energy. If you didn't own energy in the last 18 months, you miss the market. Go where people hate it. Energy is the driving pivot."
The energy sector has seen major growth in recent years from its lowest growth margin of 21.84% in 2018 to its peak of 83.3% in 2020, according to data reported by CSI Market. However, its been consistent in recent quarters at around a 50% gross margin throughout 2022. Still, that doesn't mean the energy sector is at a plateau.
"I do not hate oil and gas. The cash flow, the distributions and health care. Wow. That sector is looking golden right now," he added while speaking on Fox.
With such lucrative margins, O'Leary says he is "optimistic" about the U.S. economy.
The coal mining industry had an 87.6% gross margin in quarter four with a 101.54% return on investment. Meanwhile, renewable energy sources were only up by 28.34%. Furthermore, Reuters reported that four of the five largest global oil companies had a combined $50 billion in net income back in October.
O'Leary also said that the oil and gas industry is particularly lucrative – oil and gas production was up by 73.06% in quarter 4 with a 36.32% return on investment, while oil and gas integrated operations were up by 46.86% with a 32.48% return on investment.
O'Leary's remarks come after he garnered criticism for a tweet suggesting entrepreneurs must sacrifice their families to reach success. Additionally, he's been criticized in recent months for endorsing Sam Bankman-Fried's flopped FTX crypto exchange that allegedly misappropriate millions of client funds with SBF facing several criminal charges against him.