No matter how you slice it, Harvey Mackey’s book is bona fide classic.
After all, “How to Swim with the Sharks Without Being Eaten Alive,” is considered to be a motivational tour de force.
Yes, it was written for salespeople. But the process of success can be applied to any field. No wonder it has sold well over 5 million copies around the world since being released 26 years ago.
Turns out, there is a new way to swim with the sharks. Actually, in this case, it really is just one “shark.” But it’s a biggie with huge profit potential for savvy tech investors.
See, Kevin O’Leary is a host of the popular show Shark Tank about budding entrepreneurs pitching their companies to seasoned experts.
What most folks don’t know is that O’Leary’s “day job” involves investing in publicly traded web-related firms.
Today, I’m going to show you why his investment vehicle will continue doubling the market’s rate of return…
A Digital Legacy
O’Leary’s interest in computing goes all the way back to 1986. That’s when he started a company called SoftKey in a Toronto basement. The firm specialized in collecting educational software and distributing it on CDs.
By the early 1990s, SoftKey had become one of the biggest players in educational software. It acquired competitors such as WordStar, and in 1995 bought The Learning Company for $606 million. That became its name until toy giant Mattel acquired it for $4.2 billion.
Shortly after, O’Leary cashed out. Nowadays, of course, CDs are a rare sight.
Software is now downloaded from the Web, and often runs on the cloud instead of only on the user’s computer.
Which brings us to O’Leary’s most recent venture…
Since cashing out of The Learning Company, O’Leary has gotten into finance. He has an investment company, a mutual fund business, and is involved in venture equity.
But one of his larger ventures is a family of ETFs that follow his own emphasis on companies that are profitable, post good earnings, and have strong balance sheets.
The newest ETF in this so-called “O’Shares” family is the O’Shares Global Internet Giants ETF (OGIG). It includes the highest-quality companies from around the world that make their money from the Internet and e-commerce.
Following his own investment approach, OGIG includes only profitable and high-quality Web-related firms. This way you don’t end up with part of your investment dragged down by lost causes.
O’Leary’s timing in launching OGIG was impeccable. Debuting in 2018, OGIG has followed the rise of the Internet as an economic powerhouse.
And when the coronavirus hit earlier this year, that became even clearer. After all, it was the Web that saved America. Without it, we wouldn’t have had millions of people suddenly working from home, and 300 million video chat users a day as lockdowns stopped social gatherings and travel.
It was Internet-related tech companies that kept much of our economy running throughout this crisis.
But this ETF is also a low-risk way to hold smaller firms. Take a look:
- Shopify Inc. (SHOP) supplies retailers with sophisticated software that allows them to manage orders, collect revenue, send out emails to buyers, and get the kind of business analytics that are key to succeeding online. Shopify even helps companies build their own online sites as well as integrate with Amazon’s, all through the cloud.
- Twilio Inc. (TWLO) uses the cloud to enable apps to make and receive phone calls, emails, text messages, and other kinds of communication easily, all through the cloud. Apps like Uber, PayPal, Airbnb, Box, and others use Twilio’s cloud communication service to securely contact customers, as well as power customer service and marketing.
- Adobe Inc. (ADBE) is the global leader in software for visual creative design. Its Illustrator software for editing photos is a mainstay among professional photographers. Meanwhile, Adobe’s Photoshop image editing software is so well-known it’s become its own verb. Adobe was one of the first to move to the Software-as-a-Service model, where customers pay monthly fees for ongoing access to software, which has been a huge success.
- Salesforce.com Inc. (CRM) has created what’s probably the best-known customer relationship management software It’s used by companies like Amazon’s Web Services’ cloud division, State Farm, Adidas AG (ADDYY), and many others. The firm also sells software that integrates with its main product and helps companies with sales, marketing, e-commerce, customer service, and so on.
Now, OGIG’s expense ratio is pretty low, at 0.48%. That makes this ETF an efficient way to track the success of the best Web-related firms in the world.
Given that the ETF makes sure only high-quality companies are included, and that it looks all over the world for its investments, that small expense ratio is well-worth paying.
The care taken to invest only in the best really shows in OGIG’s performance. The ETF doubled the market’s returns since this recent rebound began on March 23, and is up more than 20% for the year.
Another plus is OGIG’s price. The ETF trades at just over $32 a share, which is a small fraction of some of its notable portfolio holdings. For comparison, one share of Amazon will put you back over $2,400 right now.
With its great focus on Web-centric tech firms, OGIG stands to keep outperforming for years to come.
That means can count on it building wealth for you over the long haul.
The New Financial Sector
Along with OGIG’s careful, quality-focused strategy for adding stocks to its portfolio, another major key to this fund’s strength as an investment is the broader ability of the internet to transform every aspect of the modern economy.
That includes everything from shopping to digital communications to distributing highly effective software applications. But there is one area of digital transformation that OGIG can’t cover; money itself.
The internet has created an entirely new market based around completely redefining the way we think about money, and that market has given its investors gains as high as 1,000%.
I’ve been studying this market, and I’ve found out that it has the potential to show these kinds of gains again in the future. Just click here to check out what I’ve learned.
Cheers and good investing,
Michael A. Robinson