ARK Investments Innovation
Good evening,
If you want to cover your bases with a long term investment in the future, Cathie Woods (see Forbes List) and ARK Investments are your answers. Her fund currently has roughly $50 Billion Assets Under Management (AUM). These are stocks I suggest you place in your Family Wealth Trust Fund for your kids and grandchildren.
Fund Manager Highlight
Today we highlight Cathie Wood of ARK Investments. Cathie manages roughly $50 Billion AUM (assets under management) and reinvest a proportional amount of those funds into companies she chooses on behalf of her share shoulders. She believes in 5 and 10 year event horizons. She also believes in exponential growth and has personally invested half of her net-worth into the fund.
Her biggest winner thus far is Tesla. She believed in and heavily invested in Tesla before it became the Tesla we know today. She bought Tesla when it traded below $27 a share roughly 3 years ago and sold a substantial amount when it surpassed $400 in qtr 4 2021. She believes Tesla is so far ahead of the pack as it relates to EV innovation and Wood’s projects their stock will eventually become $1,333 a share. I think this will happen as well, after a major correction in the ($SPY - Standard & Poors 500) sometime after Q1 2023 earnings season. Learn more about her here Cathy Wood First CNBC Interview.
Cathie also provides a monthly update and breakdown of current market trends and conditions. You can view them here.
About ARK Innovation Funds
Intro from CEO/CIO ARK Invest | Cathie Wood
Source: See Stock Ticker Symbols here
In 2019 ARK layed out their Big Ideas to provide investors with a high-level explanation of what the future looks like and how they are invested in Disruptive Innovation. These 2 minute videos really explain what Cathie and her fund view as priorities.
Electric Vehicles & Energy Storage
Genomics
Next Generation DNA Sequencing
CRISPR Genome Editing for Humans
Three Dimensional Printing
Artificial Intelligence
Deep Learning ($30 Trillion lifetime industry impact )
Financial/Blockchain Technology
Decision
Innovation is on sale and we are buying! As froth in these funds dissipate from their Covid-19 highs we see value in their long term rebounds and expect exponential, not linear, returns from these investments. We will hold these stocks for at least a decade due to their focus on innovation and current market sentiment. As market-wide investment trends move away from the future to the present we are buying shares as the price of the stock continues to go down and CALL option contracts when the prices bottoms out. As ARKK and the other ARK investments ETF’s continued decline from their all time highs we have begun buying shares. We will continue to buy shares as the stock prices continue their decline using a dollar cost average strategy.
Of note, we strongly suggest Dollar Cost Averaging into positions where you are purchasing stock. Click this link for an explainer video by TD Ameritrade on DCA. Investopedia also provides information on DCA here.
In addition to calling your broker or purchasing on digital brokerages from your phone the link above provides you with additional information from ARK Funds as to how one can invest.
Additional Thoughts - Big Picture
Cathie believes in innovation. She also believes that while the last three centuries of the markets and exchanges have experienced only linear growth our current stock market will begin experiencing exponential growth. She contextually compares our current moment in time to the transition of America from an global agricultural producer to the global industrial powerhouse. This transition began immediately after the U. S. Civil War and declined as the nation entered the great depression of 1929. This time of transition is often referred to as the Gilded Age. In short, think of investing in ARK funds in the context of being the first investors in electricity, telephone, the telegraph, refined oil, the internet, the internal combustion engine, the wheel, etc.