2 Cathie Wood Investments That Could Deliver Superior Returns
Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects. One good way to find such stocks comes from looking at renowned investors, in this case, Cathie Wood and her ARK Invest ETFs. Wood does invest in many small-cap technology stocks, but Deere (NYSE: DE) and Caterpillar (NYSE: CAT) are slightly different -- heavyweight industrials using technology to improve their offerings. Moreover, those changes result in tangible improvements in their fundamentals and operating metrics. Here's the how and why.
Deere and Caterpillar are in the ARK Autonomous Technology & Robotics ETF. Deere's inclusion comes down to its embrace of smart farming, or precision ag technology. That embrace has made smart farming an integral part of Deere's agricultural operations.
Crop farming is an industry traditionally characterized by decisions made under uncertainty. For example, when should a farmer prepare the soil, and what with? What crop should be planted, and how best to nurture it? When to harvest it? How best to service agricultural equipment needed at critical times? All these issues impact crop yields and, ultimately, farmers' income.
Source Fool.com
