The highest performing investor in the world of exchange-traded funds is Cathie Wood. Her ETFs are a powerful and popular force in the industry, and their doubling in price in 2020 is huge proof of what she can do.
Wood is always buying stocks for her five ETFs. But three companies really stand out recently, given the size of her purchasing activity. Let’s take a look at these companies right now.
Tesla (TSLA) was the underlying force behind Wood’s success in 2020, and the EV maker’s stock is a primary holding across many ARK Invest ETFs. She is optimistic about the company’s future. Across all her funds, she has spent around $160 million to buy Tesla stock to keep the stock at 8-10% in each of her funds.
Wood likes Tesla not just for the EV industry, but also because of close opportunities like artificial intelligence, and battery technology. Last week, she said ride-sharing was a possible industry for Tesla vehicles.
AbbVie (ABBV) was a huge favorite for her ARK Genomic Revolution ETF (ARKG). Wood made several purchases adding up to around 0.5% of her genomics ETF’s assets.
Many of the companies in her genomics ETF are new to the industry, but AbbVie has a long pipeline of candidate treatments along with solid numbers for possible acquisitions and partnerships. Wood thinks that AbbVie is perfectly positioned to take advantage of what she views as groundbreaking trends in the space.
3. Palantir Technologies
Palantir Technologies (PLTR) was a huge buy from Wood last week. Her top Innovation ETF (ARKK) purchased over 5.27 million shares on Feb. 18. Then she made a Feb. 16 purchase of another 1.56 million shares for her Next-Generation Internet ETF (ARKW).
Her initial buy came after Palantir announced its quarterly financials, which brought the stock much lower and gave Wood a bargain buy-in. Some investors were cautious although Palantir’s revenue jumped 40%, it had to lose money more than most had expected. Yet as with many new companies, Palantir had much stock-based compensation to put toward its bottom line. Plus there were encouraging things like improving margins and growth in its private-sector sales.
I’d anticipate Wood will keep adding to her stake in Palantir at every opportunity.
Keep watching Wood’s stocks
With so many people watching Wood’s every move, it’s vital to know what she’s doing. Her opinions carry huge sway, and she can be a great source of ideas if you’re searching for profitable stocks to buy.