Cathie Wood: The Top ‘Wealth Destroyer’ of the Decade

Cathie Wood's Ark Invest has now been labelled the 3rd most wealth destroying fund by Morningstar. In this video we discuss the history of ARKK and whether investors have something to worry about.

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★ ★ CONTENTS ★ ★
0:00 Controversial Cathie
1:50 The ARK Innovation Fund
3:30 ARK's Performance
4:20 Tesla Stock Powering ARK's Returns
5:28 How ARK Makes Money
6:57 The Downfall
8:20 Is Cathie Wood a Fraud?

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[NewMoneyYouTube]

Thanks for watching everyone! Just a quick thing I need to say looking at select few comments - while it’s fair to criticize, misogynistic comments won’t be tolerated by moderators.

[AndyXie-yoti]

You forgot one important thing. Cathie bought ~14M shares NVDA at $15-18 per share on Q2'2022. But then, she sold about 60% of that in Q4'2022 at ~$14 (a loss). Then subsequently sold about 3.5M more NVDA shares through 2023 for an average selling price of ~$36. AI visionary that forgets to bet on *the* AI stock.

[jonathantaylor]

The most perplexing thing about Cathie Wood is that SoftBank hasn't hired her.

[EatCoffee]

It’s crazy how ARKK is down 20% year to date while NASDAQ and S&P500 was up 20%, at all time highs YTD

[marccappelli]

Cathy Woods is absolutely” disruptive” I totally agree there are many people who thought they were going to retire and now they have to work till they Are at least 85 years old

[francescobroggini]

Their strategy is to invest in small companies, pump them via their strong marketing to increase the fund value and ultimately draw more money into it. As said their incentive is the 0.75% annual fee, not the companies or valuations, they are just a mean to attract more investors into their funds.

[ryannguyen]

Inverse Cathie Wood and Inverse Crammer had always been the best play

[ismailjankara]

Always good to see Brandon talk about the reality of people who dont follow Buffet’s way.

[ricecrash]

You said she lost $7.1 billion but isn’t ARKG - Ark Genomic also hers ? Adding another $4.2 billion in losses totalling $11.3 billion putting her as the leading wealth destruction CEO.

[davidariasmaestre]

I started investing on 2020 with zero knowledge, back then I was impressed with her results and on how "smart" she was. But later I started reading about finance, watching youtube channels with focus on value and quality investment, and I realized how wrong I was and how dumb she is.
Thanks for the great job you do

[paulperry]

Pump and slump.
More seriously, I remember my boss saying (more than 50 years ago) "Anyone can get lucky, but it is a tragedy if they then confuse being lucky with being smart." It's a different world today - but I still prefer companies that actually make regular profits.

[theObscurerd]

"Now I am become Cathie Wood... the destroyer of wealth"

[goobda_]

She simply benefited from an "everything bubble". She's a nothing investor.

[majordislikeforyoutubespol]

I think we should extend our gratitude to people like Cathy for redistributing their wealth to the market. Thank you Cathy!

[billgober]

Can we all just agree she talks out her rear end and tries to basically advertise for her funds by showing up all over and putting ridiculous speculative price points on things. That is scamming. Its like a boiler room tactic.

[migueleltoro]

If she actually believed the price targets she set for Tesla herself, then it would not only be 10% of the ETF. It feels a lot like one big pump and when you can pocket fees without making gains then it does not really matter for her if they perform or not. She made enough money for her life in a few years when the hype was at its peak.

and place 1 and 2 on the wealth-destroying funds list are 1) an ETF betting against big tech and 2) an ETF based on market volatility, which went down since covid, of course. cathie, that's some dedication right there!

[CurieBohr]

I just keep buying VOO. Seems to work out pretty well.

[fembotblue]

She got lucky as an investor. She hit a wave of massive money printing. Almost anything did well. Even if it was terrible.

People touted her as a female investor and she gained notoriety through it. I am sure there are lots of great female investors out there. Is Cathie one of them? Only time will tell. Remember in the short term it is a voting machine. Long term it's a weighing machine.

[tonysantoro]

I think you summed it up pretty well keep up the good work. Just as a side note ARK from 2020 has gone from $45 aprox to 2024 $45 aprox and Berkshire B in the same period has gone from $160 to $460, I think i know were i would rather be.