Kevin O'Leary, investor and star of the TV show Shark Tank, has said during an interview with Business Insider that in the next decade, the cryptocurrency sector will become the twelfth sector of the S&P 500 index.
Currently, the benchmark S&P 500 index includes 11 sectors of the economy, so most experts advise investing no more than 20% of the index portfolio in each.
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According to O'Leary, he follows this strategy when investing in cryptos. O'Leary claims to have 32 positions in the digital asset sector, including Bitcoin, Solana as well as a stake in Polygon technology. None of them take more than 5% of the required 20%:
"If you believe there’s long-term economic value in software, then you can give it a 5% weighting within your operating mandate. My larger positions are ones I think look like a great economic proposition."
O'Leary has pointed out that investment diversification is a fundamental principle because "you have no idea what might work." In his view, even two successful ten-position bets can recoup unprofitable investments.