How to Invest Like Cathie Wood: Learn from the Best with New Gen

Catherine Duddy Wood, or Cathie Wood as she is popularly known, is an American venture capitalist who has gained international fame for her innovative investment strategies. Wood was born in Los Angeles in the year 1955, in 1981 she graduated from the University of Southern California in Finance and Economics, and for more than 30 years she worked for reputable investment funds and wealth management firms.

In 2014, the entrepreneur founded Ark Invest, one of the world’s most recognized investment firms, which today has more than $50 billion in assets and, during 2020 earned a return of 150 percent. The company’s name refers to the alliance’s ark, but is also an acronym for Active Research Knowledge.

In the first half of 2021, the successful woman has captured billions of dollars due to the diversity of her investment instruments, which she has categorized into different items, some examples are: Ark Genomics, focused on companies aiming at DNA sequencing, gene therapy and molecular diagnostics; Ark Fintech, exploring the revolution of mobile payments, digital wallets, and e-commerce; Ark Space, betting on space exploration or Ark 3D Printing, dedicated to companies involved in the 3D printing industry.

As can be observed, Wood’s investments are linked to new companies in disruptive sectors such as biotechnology, artificial intelligence, genomic editing, energy storage, big data, blockchain, electric mobility, 3D printing and robotics, to name a few. Ark is synonymous with innovation and high-risk investments. Among its biggest bets are Tesla, Teladoc, Shopify, Coinbase, Crispr, Square and Zoom.

And is that, Ark Invest invests in stocks whose growth forecast is double over its value in a range of five years. During the period 2014-2021, Ark has averaged annual returns of 39% and it is worth noting that, it has made a place for itself on Wall Street, alongside firms of the likes of BlackRock or Vanguard.

Investment keys

1. Betting on innovation: Something that characterizes Cathie Wood is that she does not invest in consolidated companies, but in those that have the potential to mark a turning point in the history of mankind.
2. Look at the big picture: Study various assets and from this, glimpse the whole picture of the market, in this way, it is possible to predict the behavior of numerous sectors and companies.
3. Diversification: The entrepreneur is committed to diversifying her portfolio as much as possible. Her funds are composed of companies specialized in many areas, which reduces risk.
4. Knowing the risks: At this point, the popular phrase “he who does not risk does not win” makes sense, because investing involves making decisions that at some point could mean the loss of money and it is important to assume it.
5. Find the style: Investors need to find their own style of investment, mainly attending to their needs and other important factors, such as capital, interests and level of risk they wish to manage.

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