Yahoo Finance ‘Shark Tank’ star Kevin O’Leary says he would never invest in ‘basket case’ California. Here's why
From YouTube to TikTok and Instagram, "Shark Tank" investor Kevin O'Leary has amassed a significant following on social media.
However, his popularity as a social media star took a hit after a selfie with California Governor Gavin Newsom.
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During a recent interview with Fox Business, O'Leary detailed his encounter with the governor.
“Last year’s press dinner in Washington D.C. — I generally go there for the press scrum, it's a good place to schmooze around media — and I met him for the first time. Very charismatic guy. Really enjoyed it,” O’Leary recalled.
“And I took a selfie with him. I didn't consult any of my social media people or anything, and then I posted it.”
O'Leary then boarded a plane without internet access and was greeted by quite a surprise upon landing.
“By the time I landed, two and a half hours later, I had lost 1,000,130 followers,” he said.
‘I kinda liked the guy’
O’Leary recounted that in his post, which has since been taken down, he shared how Newsom was managing one of the largest economies in the world, highlighting the immense challenge of the job.
“I kinda liked the guy,” he said.
However, judging by the reactions to that social media post, O'Leary believes the politician has significant challenges to address.
“[Newsom] has a lot of work to do, because if that's the kind of reaction you get from a diverse base like I have across all these different platforms — they were so pissed. I have never seen anything like it,” he said.
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O’Leary then began criticizing California.
“... California, everybody knows, is a basket case. I would never invest there,” he stated. “When I look at companies in the startup or private equity phase, I say, ‘Look, I'm happy to do it, we got to move to Texas, Florida, North Dakota, Montana, maybe Oklahoma. We can't stay here because it's not in business.’ California is not in business. And San Francisco is a war zone.”
5th largest economy in the world
This isn't the first time O'Leary has taken aim at California.
Earlier this year, he labeled it the “number one loser state” in the country and called San Francisco “a rat hole.”
Still, it's important to remember that California boasts a massive economy. It’s not only the largest in the U.S. by GDP but also ranks among the largest in the world.
“California is the 5th largest economy in the world for the seventh consecutive year, with a nominal GDP of nearly $3.9 trillion in 2023 and a growth rate of 6.1% since the year prior,” Newsom’s office announced earlier this year, citing data from the U.S. Bureau of Economic Analysis.
Newsom commented that his state “continues to punch above its weight, overperforming all but a handful of the largest countries in the world.”
However, critics have noted that the state still faces challenges, such as stubbornly high unemployment. According to the Bureau of Labor Statistics, California had an unemployment rate of 5.3% in April 2024 — the highest in the U.S.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
