Excellent stock picker Catherine D. Wood is the CEO and founder of ARK Investment Management, a $42 billion disruptive era hedge fund. Wood is known for his investments in genomics, self-driving cars, fintech, and artificial intelligence. In 2020, Wood's leading store, the ARK Innovation ETF (ARKK), returned more than 152%.
Cathie Wood as of late rebalanced ARK's stock portfolio by selling roughly $1.3 billion worth of Tesla, Inc. (NASDAQ: TSLA) shares over the past three months, in early November. Tesla, Inc. (NASDAQ: TSLA) remains ARK Investment Management's largest holding as of the end of the September quarter.
In the meantime, some of the stocks Cathie Wood is buying in the second from last quarter include UiPath Inc. (NYSE: PATH), Invite Corporation (NYSE: NVTA)., Palantir Technologies Inc. (NYSE: PLTR), and DraftKings Inc. (NASDAQ: DKNG).
Coinbase Global, Inc. (NASDAQ: COIN) is ARK's third-largest position, representing 3.83% of the fund as of the end of Q3 2021. Cathie Wood extended her stake in the crypto stock market by 25% in the duration between June and September. Coinbase Global, Inc. (NASDAQ: COIN) stocks increased 49% over the current half-year.
3 Cathie Wood Stocks To Buy and Hold
Financial technology (fintech) company Square (NYSE: SQ) and streaming-TV platform Roku (NASDAQ: ROCU) are two especially incredible organisations with a high potential for strong returns in the coming decade. Also, Skillz (NYSE: SKLZ) may be worth a smaller bet if you have a longer time horizon, like 10 years. Here are the reasons.
Say Bye to Cash
According to the World Bank, Sweden currently positions 22nd in the worldwide gross domestic product (GDP) - not the largest by any means, but rather still a significant economy worth watching. And according to Dr. Jonas Hedman, Sweden's cash in circulation has decreased by about 50% from 2008 to 2018. Sweden is progressively going cashless by choice, giving a possibility that Sweden could turn into the world's first practically cashless country in the next few years.
In 10 years, it may not only be Sweden that has largely turned away from cash. Think about Generation Z, which for the most part refers to anyone born between 1996 and the mid-2000s. Apple's iPhone started the mobile revolution in the mid-2000s. Hence, Gen Z is the first generation who grew up with mobile phones as a central part of their lives. Because of this, fintech companies like Square are progressively seen as something typical, not novel.
Square is taking an especially surprising step when it comes to securing its long-term future. Just last month, the company launched a U.S. program with adult supervision. As one of the only fintech companies to address this teen demographic, today's 13-year-old child will be a 23-year-old grown-up a long time from now, entering the workforce, and having grown up with Square.
Square has many business verticals, and there's something else to consider with Square investing today.If you are planning for an impressive future of cashless transactions over the next ten years, it is believed that Square is a boat you want to be on.
End of Traditional Pay TV?
Multichannel video programming wholesaler (MVPD) is a term used to describe traditional pay-TV services such as cable and satellite. According to research company The Diffusion Group, it has been estimated that by 2026, most American families will not prefer MVPD. By then, in the U.S. most families will have real-time video content on a type of savvy TV platform like Roku.
In ten years, all video content may be accessed through streaming channels, which would help platforms like Roku. Consider that the trend has already started. In the third quarter of 2021, the executives said "the top ten satellite TV sponsors multiplied spending on the Roku platform year over year" following customers as they moved away from traditional TV channels. It looks like Roku's audience of 56.4 million active records will just get greater and more valuable in the coming decade.
At last, Roku stock is down more than half from its high recently, and some Wall Street analysts are taking a victory lap. However, the analyst community has seriously considered the earning potential of this company over the previous year. These analysts are largely encouraged to think about the current year (and they're doing it wrong), how much may they be underestimating Roku's profit potential throughout the following ten years?
Think Greater with Gaming
There are plenty of reasons to proceed carefully when it comes to Skillz. For starters, consider its income. During the first three quarters of 2021, it has burned $103 million in operating activities. It also uses another $141 million in investment activities, which include some acquisitions. The only reason it sits on a strong cash position of $540 million in stock offerings -- the business hasn't built out its financials.
In the third quarter of 2021, Skillz saw an increase in active users and paying active users, which is vital to an investment thesis in the stock. What's more, it will certainly remain an important part of the thesis for the next few years. However, if we think of a longer-term, like ten years, it's possible that Skillz could be something different than it is today.
To start with, consider Skillz's brand technique. Brands are beginning to find that mobile games with cash payouts can be a unique way to create awareness. For example, in 2020, the American Cancer Society partnered with Skillz to raise money and build support for its mission. If more nonprofits and for-profits incorporate mobile gaming into their advertising strategies over the following decade, it would make a tremendous tailwind for Skillz's business.
Moreover, Skillz CEO Andrew Paradise said, "We are investigating opportunities to expand beyond video games by adding other industries and experiences, going from exercise to education."
Paradise regularly says that Skillz is "building the competition layer of the Internet." It is bigger than any single mobile game title and surprisingly greater than mobile gaming. If the company executes on this vision throughout the following decade, the stock will probably additionally be a winner as well.
It is a good idea to hold stocks for a long time and beyond; You want to give your companies time to become a multi-bagger and compound its shareholder value. However, it can also be difficult to try and predict the next ten minutes, to say nothing of 10 years. So, it's likely that with Square, Roku and Skillz there will be challenges and opportunities that no one might have at any point seen coming.
How to Invest Like Cathie Wood
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