09-12-2021, 10:26 AM
Towards end of last yr and early this year this Cathie Woods was 'hot" and it was as if people were stupid not to buy some of her ETFs. She was interviewed on TV everyday and everyone wanted to hear from her.
![[Image: Y4YGQZ0.jpg]](https://i.imgur.com/Y4YGQZ0.jpg)
Did she really discover something different or she was just a flash in the pan. It would be unfair for me to criticise here on hindsight and her fund is still up a few hundred % from the beginning and early investors are well rewarded.
But the cautionary tale here is the hype surrounding her is unwarranted and the media often chase after stories. She invests in nascent technologies that van pay off well but also has high risks. As the fund grew to too big a side there is too much money chasing after too few ideas causing overvaluation in small cap companies. Many of these company are still making losses and this form of investing I has to get in early get in cheap and diversify so that one good company makes up for many losers.
So many investors pouring money into her fund and copying her trades that she openly declares and share research makes her form of investing disadvantaged...
Later when her fund shrinks and go back to the "right size" , and nobody wants to listen to her...strangely will also be the time her investing style can work again.
Did she really discover something different or she was just a flash in the pan. It would be unfair for me to criticise here on hindsight and her fund is still up a few hundred % from the beginning and early investors are well rewarded.
But the cautionary tale here is the hype surrounding her is unwarranted and the media often chase after stories. She invests in nascent technologies that van pay off well but also has high risks. As the fund grew to too big a side there is too much money chasing after too few ideas causing overvaluation in small cap companies. Many of these company are still making losses and this form of investing I has to get in early get in cheap and diversify so that one good company makes up for many losers.
So many investors pouring money into her fund and copying her trades that she openly declares and share research makes her form of investing disadvantaged...
Later when her fund shrinks and go back to the "right size" , and nobody wants to listen to her...strangely will also be the time her investing style can work again.