What I Am Buying Today.

[crimsonghost747]

(10-26-2021, 05:25 PM)fenders53 Wrote:

(10-26-2021, 03:28 PM)stockguru Wrote: So Yesterday's headline was "Kathie Wood" buys big into HOOD day before earnings"

Haha how did that work out for you? She's getting worse them Cramer now  Horrible report after the bell

Not even in the same world at the moment.  I find some of Cramer's content useful after I apply some common sense and DD to it.  She has become purposefully contrarian and I fail to see her motive.  I get it she is forced to sell liquid stocks when her fund holders head for the exit.  Sometimes forced to sell low.  Her buys are just nutty.  OK enough SPEC stocks, and it seems like she usually adds to them only when they are expensive.  Pumps them publicly at the worst possible moment.  Next bear market she won't have a fund to manage.  I've never seen a fund manager act so reckless out in the open.

I agree that it does look quite careless to the public, I'm not sure if that is more about what she does or about what the media wants it to look like she is doing. This HOOD thing is a great example. It makes the headlines that she "buys in big" right before earnings, and then the earnings are bad. Now I don't know what "big" is to these people, but I don't think this "buys in big" was more than 0.3% of the capital of ARKK. I do not know how much HOOD they had before (they did have some), but as of yesterday HOOD was 1.02% of the fund.

It makes big headlines because people will click on those headlines. And in dollar amounts it is a big bet, but is there anyone here who can claim that they haven't made more-risky-than-average move with 0.3% of their portfolio? And actually saying "portfolio" is not even a fair comparison, since they have several ETF's. (their fintech ETF also has HOOD, currently at 2% weight) Point is that she didn't actually do anything stupid or reckless, just increased the weight of a company a tiny bit. 

I actually participated in a webinar that she was a guest in recently and I quite liked what I heard. She is dedicated for sure and really passionate about what they do. But careless or reckless? Not at all. The image I got from participating in this webinar was very, very different from what I get when I read these crazy headlines in the media. From what I gather, she isn't really targeting specific companies, rather she is targeting specific sectors that she believes to be disruptive in the future and then buying up some of the promising companies in order to have a wide exposure to the sector. Not a bad plan to be honest.

Her funds are a bit too risky for my taste but I don't think she has lost her touch. It's just that the expectation lately has been that everything she touches turns to gold in a matter of days, and that is hard to accomplish.