2 Highly Profitable Cathie Wood Stocks Poised to Bounce Back in the Long Run
After her ARK Innovation ETF (NYSEMKT: ARKK) soared 242% from April 2020 through January 2021, Cathie Wood's exchange traded fund (ETF) has crumbled. Year to date, the ETF has plunged almost 60%, and many of the star stock picker's favorite companies continue to tumble in the wake of rocketing inflation and rising interest rates. Generally speaking, Cathie Wood prefers high-growth companies with innovative business models. Many of these companies, however, are not yet profitable and trade at lofty valuation levels.
Wood's goal is to invest in businesses that will eventually generate a surplus of profits and cash flow, providing outstanding capital gains along the way. Many of her investments are struggling at the moment due to the uncertain economic environment, which has triggered a shift from speculative growth companies to safer assets like bonds and value stocks. That said, the growth investor's portfolio is not all tied up in unprofitable businesses.
In fact, two of her top holdings are highly profitable companies that have the potential to generate monstrous returns in the long run. And, fortunately for bargain hunters, both stocks are down significantly year to date. Let's dive in and examine why investors should consider buying shares of these two companies.
Source Fool.com
