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Shark Tank's Mr. Wonderful has 'sit and wait' stock-picking strategy

As a judge on ABC's (DIS) “Shark Tank”, Kevin O'Leary helps dreamers become millionaires by investing in their small business ideas. Now he is seizing what he sees as an opportunity in the growing popularity of exchange-traded-funds.

O’Leary, who is often called "Mr. Wonderful" on the show, is entering the crowded ETF space by launching the O’Shares FTSE U.S. Quality Dividend ETF (OUSA), a basket of high-dividend, low volatility stocks. He said he created this product with his mother in mind.

"She basically said to me, 'You only make money on a stock that doesn’t pay a dividend if it goes up in value,'” O'Leary said.

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Sitting around and waiting may not be the approach O’Leary is known for but when it comes to stock investing, he said “if you’re being paid a dividend, then you can sit there and wait.”

He emphasized that his investment strategy is “about cash flow, in cash I trust. Cash is what I measure, I want cash, every month."

Three of the largest sectors among the 140 stocks selected in O'Shares ETF are consumer goods (IYK), health care (XLV) and technology (XLK). On ther other end, materials (XLB), financials (XLF), and utilities (XLU) are the smallest sector holdings.

As for America’s place as a global leader in the marketplace, Canadian-born O’Leary is “not worried about America. I’m just worried that we make sure that we stay globally competitive and not just domestically anymore.” He added, “I’m still very very bullish” on America.

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