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- Cathie Wood has purchased a share in an old school stock.
- She held a share in General Motors whose chief executive officer is Marry Barra.
Cathie Wood, the CEO of Ark Investment Management generally targets young tech firms. As per Wood, those firms are disruptors. But, in the recent past, she has done something exactly opposite to this. She held shares in a firm which was definitely not young.
The company in which Wood has purchased shares is General Motors and its chief executive officer is Mary Barra. A total of 70,226 shares were purchased which is estimated at $2.9 million.
On the website of General Motors, it is mentioned that “it is on its path to a fully electric future. Also, we are determined going through each and everything about what it takes to keep everyone in an electric vehicle (EV).
The reason behind the aforementioned thing is that the company wants millions of EVs on road to make influence over creating a zero-emissions future. The biggest competitor of an electric vehicle from GM is Tesla. Tesla is leading the market and also has the second biggest holding in Ark Innovation ETF.
It is been predicted that Wood has purchased shares of General Motors as she has seen some potential in the electric vehicles field and may be based on its total strong imposition.
The five year investment plan
The ETFs of Ark have fallen down in 2022, as a consequence of tech holdings experiencing weak earnings. But, Wood in clarification stated she already has a five-year investment plan. This five-year plan will definitely help investors till May 9.
However, the five year by year return of the company is estimated at just 4.58% by November 11, very far from the S&P 500’s 11.065 return.
The company has planned about 15% returns in a duration of almost five years but the fund’s performance wasn’t up to the mark. Currently, the company already slipped 58% this year and it is low 75% from its February 2021 high.
The underachievement of the fund of $8.2 billion may eventually be initiated to make investors away. Ark Innovation experienced a total discharge of $121 million in the three months by November 10, as per the reports of a research company named as VettaFi. However, it has also listed an income of $1.39 billion till now.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
