Kevin O'Leary, host of Shark Tank, is diversifying his investment portfolio with rare sports cards, targeting approximately 5% allocation to the asset class. O'Leary's group recently purchased a one-of-a-kind card featuring pieces of Shohei Ohtani's game-worn jersey for $11 million.
O'Leary announced the purchase on CNBC, noting that a Florida teenager discovered the card in a Boca Raton shop. He invests through Secure Collectibles alongside collector Shyne and entrepreneur Paul Warshaw, with the group's combined holdings labeled the WonderShyne Index.
Investment Rationale
O'Leary's approach to sports collectibles mirrors arguments made by cryptocurrency advocates. He cites the U.S. M2 money supply, which reached $23.22 trillion in July, as justification for owning assets that cannot be printed by central banks.
His stated strategy involves owning multiple high-quality cards, diversifying across them similar to an index fund model, and allowing the portfolio to compound over time. The group has spent approximately $100 million on collectibles to date.
Portfolio Performance and Limitations
O'Leary personally selects cards and sets the criteria for inclusion in the index. The group reports holding no losing positions, though valuations remain largely on paper. According to Card Ladder, his Michael Jordan and Kobe Bryant card is valued at nearly $17.05 million, yet O'Leary has stated he will not sell it.
The liquidity challenge for one-of-a-kind collectibles differs significantly from traditional assets. O'Leary maintains a smaller cryptocurrency portfolio, with Bitcoin and Ethereum comprising 90% of his crypto exposure as of April.
The potential for public access to the WonderShyne Index remains uncertain, with O'Leary having hinted at the possibility without confirmation.
