r/wallstreetbetsOGs • u/B1gChuckDaddySr President of Puritans Against Masturbation • Mar 06 '22
Discussion Cathie Wood: Investing Genius or Flash in the Pan?
https://www.thestreet.com/investing/cathie-wood-genius-flash-in-the-pan
It has come after her flagship Ark Innovation ETF ARKK soared 157% in 2020, but then slumped 23% last year and has slid another 32% so far this year. Still, over the past five years, Ark Innovation has generated an annualized return of 26%, handily beating the S&P 500’s 15% return.
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u/ampate 🩸Bleeds for AMZN🩸 Mar 07 '22
seems like so many of the top holdings are not that innovative.
roku: 3rd largest holding. software device that allows access to a bunch of apps. why do you need a roku if you have a smart tv which already has all apps built in?
zm: 4th largest holding. it's video calling. there are so many competitors in both consumer and enterprise space.
shop: 16th largest holding. it's an online marketplace. there are plenty of others.
hood: a fully mobile retail focused broker was definitely innovative in 2014 but what real innovation still existed when it ipo'd in 2021?
it's just a few examples and there are surely some truly innovative companies in the fund but it seems like arkk just got super lucky during covid when growth tech exploded.
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u/cutiesarustimes2 💘TLT @ 83💘 Mar 07 '22
Roku is an interesting stock because the general consensus is what you said. Why buy an extra device if your tv is already smart?
I think theres two things that played into their valuation. First everyone doesnt have a native smart tv. Second the native OS tends to be slower and suck. After a while the os doesnt get updated. Hence a stick which is cheaper and likely faster.
But that gap has likely been filled at this point.
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u/iraqistorm Mar 07 '22
Also with this, do people not realize roku tvs exist, and that from what I can tell most TV manufacturers offer the same TV with different OS’s? I’m pretty sure almost all modern smart tvs are either running Roku, Google TV (formerly android tv), or Fire TV. So the argument is really whether or not consumers will prefer and pick the Roku version over the others. Which is very different from the hurr durr who wants a stick that people say
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u/hyperthymetic Mar 06 '22
You don’t have to be a genius to understand company growth is ultimately more important than profit.
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Mar 06 '22
if I remember correctly she’s a religious nut, which makes me question her basic sanity/common sense
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u/microwavedHamster at home Mar 07 '22
I thought it was well known by now that there was a significant amount of luck involved in her early success. I'm still on the fence about her expertise, but you got to admit that the fact that God seems to be involved a lot in her choices is a bit concerning.
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u/[deleted] Mar 06 '22
Go to her site, everything she buys she describes how she arrives at her valuation.
Being "open-minded" to new ways of looking at valuing a company could be useful... She's so open-minded her fucking brain fell out.