Catherine Wood, Women’s Version Of Warren Buffett

The active ETF fund ARK Innovation ETF (ARKK) managed by Catherine Wood rose 170% last year, and its management scale increased by 10 times. Several other ETFs also performed well. This kind of speed and brilliance is unprecedented in active ETF funds. Catherine Wood’s hot performance has aroused major media reports, and is therefore known as Warren Buffett’s Latest Challenger (Warren Buffett’s Latest Challenger).

Never hire professional financial professionals

Catherine Wood has 40 years of professional investment experience and is a veteran of Wall Street. Before founding ARK, she worked in many organizations. Her last employer was the well-known AllianceBernstein (UnionBernstein Fund). She worked there for 12 years and managed $5 billion in assets.

Obviously, Catherine Wood is not bound by institutions. She came out to start a business, founded ARK, and recruited analysts from all over the world. She never recruits financial professionals or MBAs. Her team includes cancer scientists, artificial intelligence experts, game engineers, and even captains.

In terms of external communication, ARK is also very different. They provide free subscription services to retail investors and disclose the company's positions and investment decisions daily, which is extremely transparent.

Her main investment focus is to buy disruptive and innovative companies. In the past few years, the ARK Fund has concentrated on betting on popular stocks such as Tesla, Roku, Square, and biotechnology driven by the Covid-19 epidemic. She told the media last month that she has ambitions to triple the money of investors in the next five years. "Many managers focus on how to beat the index, we think this is not seeking to make progress." Catherine Wood said. She believes that the traditional large funds' analytical thinking on technology stocks is backward, and it is difficult to keep up with the ever-changing era, which is the primary reason for her establishment of ARK.

The Woman Behind Tesla

ARK invested in Tesla about 5 years ago, and it has always been the largest holding of the fund. In the past 12 months, Tesla's stock price has soared nearly 10 times. In addition to the influx of tens of billions of dollars into the Ark, there are more retail investors looking at the stocks that Ark buys and sells every day, and by "copying work", expecting to get rich overnight.

Traditional analysts believe that Tesla is a car company, but Catherine Wood thinks that this view is grossly wrong. She believes that Tesla is actually not only a robotics company; because of its emphasis on battery technology, it is also an energy storage company; coupled with the development of driverless cars, it is also an artificial intelligence company.

From 2016 to 2018, when the market questioned Tesla, she continued to increase her share of Tesla. In mid-January 2020, Catherine Wood raised the Tesla target to $6,000. At the end of January 2020, ARK Invest published an article stating that the target price of Tesla stock was $7,000.

Investment Ark Fund

Ark is different from general funds and has a special positioning. The "risk/reward" attribute of Ark lies between growth funds and venture capital funds, and is a highly volatile target. Ark is a company that has evaluated disruptive innovations in the past five years. It is a long-term investment attribute. During the period, it will enter and exit. It is an operation to adjust the proportion of allocation or reduce costs. Most of the loss targets have very large price fluctuations, and investors are the best. Have a long-term investment mentality.

If you don't want to worry about your brain, it is most convenient to invest in the flagship ARKK, which already covers all the targets that women stocks are optimistic about. In addition to ARKK, Ark also has 4 other ETFs, each with its investment focus. If investors are already interested in these areas, they can directly choose these ETFs.