- Three “Shark Tank” investors focused on stocks, real estate and cryptocurrency.
- Daymond John likes Apple and Amazon; Kevin O’Leary likes index funds but is worried about the commercial space.
- Barbara Corcoran thinks home prices will rise, and says she lost $50,000 betting on Bitcoin.
A trio of “Shark Tank” investors shared their thoughts on stocks, real estate and cryptocurrencies in a Fox Business interview on Tuesday.
Kevin O’Leary praised index funds, sounded the alarm on commercial real estate, and predicted the crypto industry would clean up its act. Daymond John blasts Apple and Amazon and says they’ve made a little profit from crypto trading.
Meanwhile, Barbara Corcoran issued a bullish outlook for home prices, warned that parts of the real estate market are in trouble, and revealed she lost $50,000 on Bitcoin.
O’Leary – nicknamed “Mr. Wonderful” – said stocks make up about 50% of his portfolio, but he invests in index funds rather than individual names.
“It’s really hard to pick stocks,” said the founder of O’Leary Funds and O’Leary Ventures. “The market is volatile but I have the best stocks in the index, and I just sit back and let them do their thing.”
FUBU founder and CEO John declared a post-pandemic renaissance for the retail sector, noting that Amazon stock is up more than 40% this year. He also praised companies like Apple for building an ecosystem of products and services.
“Amazon is not going anywhere,” he said. “Now they catch us at the ring, they feed us at Whole Foods, and then they deliver our boxes. It’s a universe.”
Corcoran, founder of The Corcoran Group, said she limits her investments in the stock market because she prefers to buy property.
“I like to invest in stocks but I limit myself to 30%,” she said. “I like to serve my own gods, and to me that’s real estate.”
Mortgage rates have risen more than 7% in recent months, but home prices remain near record highs due to a shortage of homes for sale. A major reason for this is that many potential sellers do not want to give up their cheaper mortgages and take on a more expensive mortgage.
“There’s no inventory like an insurance policy,” Corcoran said. “If you don’t have enough homes to live in, prices will keep rising. There’s nothing that will make more homes available, even if interest rates remain high.”
Conversely, higher borrowing costs, higher amounts of leverage, and trends such as remote work and online shopping have put pressure on the commercial real estate sector.
“Shopping malls are in trouble, these big-box stores are not performing so well,” Corcoran said.
“They’re going to zero,” O’Leary said of some of the hardest-hit parts of commercial real estate, such as offices in less attractive markets. He said asset values have declined, and troubled regional banks have raised interest rates on loans to highly indebted developers from 5% to between 11% and 17%.
O’Leary, the former frontman of Sam Bankman-Fried’s FTX, predicted a bright future for digital currencies before the crypto exchange exploded last year.
“All these gimmicks, all these evil crypto cowboys, they will all be over in a few years,” he said. “The SEC is going after them all over the world.”
O’Leary said he still sees potential in bitcoin, the “grandfather” of digital-payment systems, as well as ether and others.
Corcoran said in a much less enthusiastic tone: “I lost $50,000 in Bitcoin, I don’t like the whole thing.”
As far as John is concerned, he described crypto as a promising space and said that he is trying his hand at it.
“I’m actually a little bullish,” he said, adding that he doubts the crypto will disappear entirely given its size and profile.