Kevin O'Leary, known for his role on Shark Tank, built his fortune after selling his software company to Mattel Inc. MAT for $4.2 billion in 1999.
In a recent interview with Business Insider, O'Leary shared five key money lessons that have guided his investment strategy since he was a kid.
Stop Wasteful Spending, Start Investing Returns
O’Leary, popularly known as “Mr. Wonderful,” advocates aggressive cost-cutting on discretionary expenses. “Stop buying $7 coffees. Don't pay 40 bucks for lunch. Make it yourself,” he said. “Ask yourself every time you’re about to buy something: Do I really need this?”
The billionaire investor emphasized opportunity cost calculations. “Look in your closet at all the clothes you don’t wear. It’s all crap you don’t need, and that crap could have been earning you market returns of anywhere from 8% to 10% over your entire lifetime.”
O’Leary projects that someone earning $70,000 annually who invests 15% monthly income in diversified portfolios from their late twenties through age 65 can retire as a millionaire, assuming historical market returns continue.
Focus Strategy: Three Daily Tasks Maximum
Successful entrepreneurs must filter operational noise, O’Leary explained. Workers should identify three critical daily tasks and block distractions. “You’ll become very productive and a very valued employee,” he said.
This philosophy aligns with O’Leary’s investor criteria. He revealed he seeks entrepreneurs with a “founder’s mindset” who can filter operational noise.
The Canadian entrepreneur offered blunt advice for employees who disagree with their company’s direction: “Get another job.”
Listen More Than Talk: Develop ‘Superpower’ Skills
Many entrepreneurs have “huge egos” and “love to hear themselves talk,” but miss market signals, O’Leary explained. “You have to learn how to shut up,” describing listening as a “superpower.”
“It’s akin to having your ear to the rail and hearing the train coming down the track that’s going to run you over,” he said. “To know to get off the track. That’s what listening does.”
Financial Transparency, Independence Training
Mr. Wonderful recommends discussing money on third dates and signing prenups to force “due diligence” on partners’ financial habits. He warns against creating entitled children, recalling his mother’s graduation advice: “The dead bird under the nest never learned how to fly.”
This principle extends to his core investment strategy learned at age seven. “My mom taught me the greatest financial lesson of my life when I was seven: ‘Never spend the principal, only the interest.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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