Here Are Some Great Investing Tips From Cathie Wood

Advisor November 25, 2021

Welcome to Investing 101 with Cathie Wood – CEO, CIO, and Founder of the investment management firm, Ark Invest.

When it comes to investing, it is safe to say that Cathie knows her way around the industry and can definitely teach you a few tips and tricks too. But let’s talk about something more basic: investments. What is an investment? Who should invest and is it even beneficial?

Bloomberg | Let’s hear investment from the expert herself

Understanding Investing

Investing basically entails pooling money into schemes, shares, property, or any commercial venture with hopes that in some time, you will receive a profit. There are many types of investments. For example, some people tend to invest in the real estate business, where they purchase a house at a cheap rate, renovate it, and then they sell it for a significant amount securing a good profit. Some people invest in stocks and some people opt for mutual funds or retirement funds.

Investing is a good way for people to put their money to good use and can even make a decent amount of profit from it as well.

Pexels | Unless you put your money in the right place and in the right way, you’ll continue to suffer losses

So, if you are thinking about investing, hear it from the investing queen Cathie Woods first.

1. Diversifying into Liquid State

The pandemic greatly affected the entire economy of states and Ark Invest also had to deal with their fair share of issues. But they began to take charge once they started diversifying their portfolio and moving for certain names that are significant and have the ability to innovate. The higher the liquidity, the lower the risks. This is because there is always a good chance of another buyer or seller waiting to cash in the opportunity.

2. Look for Exponential Growth Rates

Growth rates are basically indicators of the profitability of a company on the basis of its chances to grow over time. So when you are looking to buy some stocks, make sure to consider the company’s growth rate. Wood also talks about the fact that, to no surprise, the companies she is working with have great growth rates.

3. Pursue EV Investments

As EV companies continue to steal shares away from traditional automakers, EV company shares are on the rise. As the demand and consequent sales of EVs increase, so does the EV market, especially in China. A big player making waves in the EV industry is none other than Tesla (TSLA), which sees about 113% growth every year.