| | | | Seriously, Cathie? That's the golden goose every investor is chasing!
Of course, you wouldn’t have sold if you knew NVDA was going to skyrocket. That's literally what everyone is after, Cathie!
This is the essence of the market — the thrill of figuring out which stocks are most likely to soar and which will tank.
t’s the reason investors stay glued to their screens, the reason trading floors are full of frantic energy. In short, knowing when a stock is about to shoot up is the holy grail of investing.
So saying, “We wouldn’t have sold if we had known it was going to go up” is a little redundant, like saying “the sky is blue.”
We recently wrote about the dangers of following big, famous investors.
One key point we emphasized is that these investors often operate on different timelines and use strategies than the average retail trader.
Or sometimes, like in Cathie Wood’s case, they just make bad calls.
Cathie Wood’s fund, ARK Invest, sold Nvidia (NVDA) shares in January 2022 when it was trading below $150 per share — keep in mind this is before the recent 10-for-1 split — missing out on more than $1 billion in potential returns!
That's right — they sold off Nvidia just before it embarked on one of the most spectacular runs in tech stock history. Since then, NVDA has been on a tear, fueled by the explosion in AI and semiconductor demand, hitting record highs and making millionaires out of its holders.
According to reports, Wood’s flagship fund, ARKK, sold off nearly all its Nvidia shares, missing out on an astronomical rise. As of now, NVDA is up over 400% since they sold their stake. Talk about missing the boat!
As our friend Roger Scott has said many times: "She is amazingly bad at what she does, period! God awful."
It's harsh, but it underscores a critical lesson for traders: even the so-called “pros” can make monumental mistakes.
To be fair, 2022 had been a tough year for NVDA, with the stock shedding nearly 60% of its value from it’s peak around $320.
Investing isn't just about following big names — it's about understanding your own strategy, risk tolerance, and time horizon. Just because someone like Cathie Wood or Warren Buffett makes a move doesn't mean it's the right one for you.
In fact, as we’ve seen, sometimes it's not even the right move for them!
So, the next time you see headlines about a famous investor’s latest trades, take a moment to dig deeper. Understand the context and remember that nobody, not even Cathie Wood, has a crystal ball.
And maybe, just maybe, take their moves with a grain of salt — because even the big players can get it spectacularly wrong.
— The Prosperity Pub Team | | | | |
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