Cathie Wood on supply and demand slowing Nvidia's growth

Q: What other factors could drag on Nvidia’s growth? 

A: China is working hard on developing its own chips, and so are the cloud-service providers such as Google, Amazon.com, and Microsoft.  Tesla is also designing its own chips since they are mission critical for autonomous driving.  Tesla has already pulled some Nvidia chips out of its cars. 

A lot of demand for chips was pulled forward as companies double- or triple-ordered from Nvidia during the chip shortage, trying to get enough supplies.  That cyclical dynamic could play out in the next few months.  Elon Musk recently said that he’s not having trouble getting chips anymore.

~ Cathie Wood, "Cathie Wood Thinks Nvidia Has More to Prove. Her Favorite AI Stocks—and Why She Still Loves Tesla.," Barron's, April 13, 2024

Dan Ferris on Cathie Wood begging for lower interest rates

There's an underlying point [in Cathie Wood's letter to the Fed] and it kind of credits the Federal Reserve with being able to control things from the top down simply by cutting interest rates again.  It's like cutting interest rates is some magic panacea that just makes everything better.  And what people don't realize [is that] cutting interest rates down to zero the way they did is what got us into all the crap that is now unfolding.  If you don't do that in the first place, you don't get all of this bear market, worst year in the bond market since 1788, etc., etc., etc.  If you don't get the inflation of the bubble, the blowing up of the bubble, on the upside, you don't have to put up with the exploding and the popping of it on the downside...  I think the Fed meddling and meddling and meddling is part of the problem.  And she didn't say for the Fed to be abolished and get out of the markets.  She basically credited them with the ability to make it all better by lowering rates.  And I totally disagree with that.

~ Dan Ferris, "Out Mailbag Is Full, Thanks to You," Stansberry Investor Hour, 48:00 mark, December 26, 2022

Cathie Wood: Are we in a bubble?

So many people ask me, "Are we in a bubble?"  We couldn't be further from it.  I do not believe that the average investor understands how productive these next five to 15 years are going to be [for stocks] as these S-curves feed one another and enter exponential growth trajectories that we have never seen before.

~ Cathie Wood, "Millennials will power a bull market in stocks for decades: Ark Invest's Cathie Wood," Yahoo Finance, September 7, 2021

Cathie Wood on recent correction: "Nothing has changed for us"

We were hit with a bout of volatility...  Nothing has changed for us...  If we use our 5-year price targets, instead of expecting a 15% compounded annual rate of return - no promises here, compliance will be happy that I say that - instead of 15%, which is where we were at the peak in February, we now believe that our portfolios will deliver closer to 25% compound annual rate of return.  Again, no promises, but all  I'm saying is the bout of volatility did not change our price targets.  They gave us a great opportunity to concentrate towards our highest conviction names.

~ Cathie Wood, Bloomberg interview, 1:30 mark, April 14, 2021

Cathie Wood buys the dip in Tesla

We love the liquidity that this provides us, we think it’s very healthy, a very healthy shakeout.  All I know is we are keeping our eyes on the prize and the prize just got a little bit more interesting.  Corrections are good, they keep us all humble.  The strongest bull markets I’ve been in are built on walls of worry.

~ Cathie Wood, "Cathie Wood Buys the 13% Dip in Tesla as ARKK Slips Again," Bloomberg, February 23, 2021

(Wood’s main fund, the $27 billion ARK Innovation ETF (ARKK), notched its worst back-to-back rout since September, falling as much as 11.8% and ending the day down 3.3%. A record $4.96 billion worth of shares changed hands in total, more than double the previous high just a day prior.  ARKK closed down 11.2% from its all-time high set February 12)

Cathie Wood predicts $250,000 Bitcoin price if companies step up (2021)

If all corporations in the U.S. were to put 10% of their cash into bitcoin that alone would add $200,000 to the bitcoin price.

~ Cathie Wood, "Bitcoin could hit $250,000 if U.S. companies opt to do this, says Cathie Wood," MarketWatch, February 17, 2021

(Bitcoin closed at $51,376.)

Cathie Wood on Bitcoin as a portfolio diversifier

If you look at the correlation of Bitcoin's performance relative to any other asset class, it has the lowest correlation.  Meaning, if you buy some Bitcoin you will further diversify your portfolio and increase your returns with lower risk, right?  So that's why institutions look for that low correlation.  Bitcoin has it.  And so that's clear; we have 10 years of history now. 

~ Cathie Wood, "A typical day for Ark Invest's star stock picker Cathie Wood," Yahoo!Finance, 17:50 mark, February 6, 2021

(Bitcoin closed at $39,267 on Feb. 6.)

Cathie Wood: "We've never seen this amount of change at the same time in history"

What's fascinating about this period is that now we're seeing a flood of IPOs, a flood of secondaries, we've seen SPACs, which really are liquidity events earlier than otherwise might have taken place, because I think there's a collective understanding that the future is here.  And if we don't invest now, we're going to lose out...  So we've got five platforms, 14 different technologies.  We've never seen this amount of change at the same time in history.

~ Cathie Wood, "A typical day for Ark Invest's star stock picker Cathie Wood," Yahoo!Finance, 3:10 mark, February 6, 2021