According to the Forbes article that I read in this video, Cathie Wood, CEO of Ark Invest, has seen her net worth decline by 65% in 2022 due to the terrible performance of Ark’s flagship ETF. The expression “going for broke” means you take the most extreme or risky course of action in order to try and achieve success. That reminds me of Cathie Wood. But Cathie Wood could literally go broke if she doesn’t stop trading stocks so recklessly.
🟢 SUBSCRIBE TO THE CHANNEL:
🟢 CMQ PODCAST
🟢 CMQ NEWSLETTER
Signup for free –
Follow me –
Charlie Munger Quotes –
Warren Buffett Videos –
👉 FULL ARTICLE
Ark Invest CEO Cathie Wood’s Net Worth Slashed By 65% As Tech Bets Sour In 2022
Ark’s flagship ETF is crashing but Wood is doubling down, increasing her stake in her firm and betting on tech outfits like Tesla, Zoom and Coinbase to eventually rebound.
Cathie Wood became a cult hero in 2020 for a generation of investors raised on the mantra that stocks only go up, but this year has been a swift and painful reality check for her Ark Invest and its loyal disciples.
An early acolyte of Elon Musk and Tesla, Wood steered Ark expertly through the turbulent early months of the pandemic, and her flagship Ark Innovation ETF rose 157% in 2020. When Musk first became the richest person in the world in early 2021 after Tesla surged more than eightfold the previous year, Wood was riding high as a “disruptive innovation” evangelist, with investors piling into her funds.
Ark’s woes started shortly after that. Large holdings like Zoom, Roku and Teladoc Health struggled in 2021 after benefitting from overexuberance toward stay-at-home stocks in 2020, and the Ark Innovation ETF retreated 23% last year, even as the S&P 500 gained 27%.
This year’s bear market has been much worse, and Ark’s concentrated portfolio of tech stocks is taking the worst of it. The Ark Innovation ETF has crashed 60% this year, nearing its March 2020 low point, and the firm’s assets under management in all of its ETFs declined from a peak of more than $60 billion in February 2021 to $16 billion by the end of April. Based on that asset slump and stock declines for publicly traded asset managers like T. Rowe Price and WisdomTree, Wood is dropping off Forbes’ list of America’s richest self-made women this year.
Her estimated net worth of $140 million is sharply down from $400 million last year and falls well short of the $215 million cutoff to make this year’s top 100. Forbes estimates that her majority ownership stake in her firm is worth about $125 million. The rest comes from our estimates for her own cash invested in Ark’s funds and in separate cryptocurrency investments–she has predicted that bitcoin’s price will surpass $1 million by the end of the decade–and her personal real estate.
Link to Full Story: /