The Right &The Wrong side of the Equation (-51.29% /232 days)!12 years ago when I started this journey(trading/investing), I told myself: you have to review the background of the most successful traders and investors and pick the bullet points that work the best for you!
Before I came to the US 2 years ago, I have never heard about ARK invest. I remember the first time I search for the best-performing hedge fund in the past 5 years, ARK invest and Cathie Woods.
I was reading about their strategies and checked all their fund's holdings one by one, I built a watchlist of ARKG, ARKK, ARKW...etc.
From the fundamental point of view, I noticed they invest in companies that barely have revenue and if they generate revenue they are not profitable and will not become profitable in the next 5 years!
Moreover, they have invested more than 99.9% of the funds and it will limit their action!
Another common feature between their investing was a beautiful story and multi-trillion dollars disruption!
Usually, they mention 30 trillion dollars in their interviews..!
The bigger Fool theory:
Story of Fake gurus on YouTube: I notice there are lots of YouTubers with the same mantra: "I buy because ARK invest has bought", some times even a rumor was enough to cause the price jump, like BNGO's +3000% move in less than 40 trading days!
By the time I found out Bill Hwang was the one who provide the seed money for the first 4 ARK's funds I became confident that something must be wrong..!
After finishing my research, I have published more than 20 short articles on ARKK and other ARK funds in the past year, Althogh, I received much criticism, today ARKK is trading -51.29% from its All-Time-High..! and I'm confident that is not the end of the story..!
I think in the best scenario it will go down to 60, and the worst scenario could push it down to 30-35..!
You may think I am crazy, but reviewing Cathie Woods's performance in 2008, shows her disruptive thematic investment had -38-48% performance!
In the past year, those who hold their positions were on the Wrong Side of the Equation..!
Best,
Moshkelgosha
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