2 Cathie Wood Biotech Stocks That Could Be Worth the Risk
Cathie Wood's commitment to buying shares of businesses working on disruptive innovations, via her ARK Innovation ETF and ARK Genomic Revolution ETF, makes her investing style very much on the riskier side of the spectrum -- especially when she invests in already risky areas like biotech. But if her theses are correct, the upside to investors could be tremendous, assuming they can tolerate what might be a very long and bumpy ride between buying shares and seeing a payoff.
On that note, let's examine a pair of Cathie Wood's picks that are prototypical of her high-risk, high-reward approach to growth stock investing.
You've probably heard of semiconductor foundries, which take customers' designs for microchips, clarify any outstanding technical details that are blocking implementation, and then manufacture them at an industrial scale. The point of working with a foundry is that its massive manufacturing capabilities grant it access to economies of scale, so its customers can procure customized chips at a far lower cost per unit than they'd need to shell out if they tried to produce them in-house.
Source Fool.com
