If You’d Invested $10,000 in ARK Invest Founder Cathie Wood’s Favorite Stock This Time Last Year, Here’s What It’d Be Worth Now

The valuable particular person investor has high phrases of praise for the maintaining that makes up so unprecedented of ARK Make investments’s vigorous ETF portfolios.

Dan Caplinger

This text represents the belief of the author, who would possibly well maybe well moreover disagree with the “first price” advice function of a Motley Fool top price advisory provider. We’re motley! Questioning an investing thesis — even opinion to be one of our have — helps us all command significantly about investing and construct decisions that reduction us transform smarter, happier, and richer.


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There would possibly be a brand unique valuable particular person within the investing home, and her title is Cathie Wood. The founder of the ARK Make investments family of actively managed substitute-traded funds has revolutionized the industry, eschewing passive index monitoring in favor of precise worn-fashioned stock deciding on. All 5 of Wood’s ETFs respect larger than doubled over the last year, and all 5 characteristic various portfolios with lots of dozen shares among their holdings.

Alternatively, there is one stock that Wood has praised larger than any diversified. It is been an integral half of her ETFs’ holdings over the last year, and its performance has been major to the success of ARK Make investments. Under, we are going to fragment what Wood has said about this company and whether or not she thinks it soundless has precise say potentialities for the lengthy breeze.

The completely bull in a room fleshy of bears

After a stock has soared, or not it’s easy to be bullish. But Wood modified into once by her authorized stock lengthy forward of it modified into once crimson-hot — and even when many believed it modified into once on the verge of give method.

Person holding bull and bear figurines in two hands.

Image offer: Getty Images.

To catch some context, witness relieve to August 2019. The fragment tag of Wood’s authorized had fallen by a Third because the initiating of the year. Many were skeptical of its capacity to soar relieve from opinion to be one of many controversies surrounding the corporate and its CEO. The company even reduce prices on its essential product line, and some even feared that a financial disaster filing would possibly well maybe well be impending.

The stock, clearly, is Tesla (NASDAQ:TSLA), and nothing going down with the corporate 1 1/2 years ago deterred Wood from her bullish views. “We command the harmful sentiment is magnificent impossible,” she said in a CNBC interview. Wood noticed incorrect margins for the corporate’s merchandise rising over time and pointed to the ancillary doable of self sufficient-car technology as an extensive tech asset on which no one at the time modified into once inserting unprecedented price.

By formulation of competition, Wood smartly-known, Tesla modified into once constructing its have aggressive advantage by constructing the trail-to yelp of employment for those drawn to innovation. “It is getting all the in actuality mammoth gadget engineers,” she commended CityWireUSA. “Tesla is taking all the oxygen out of the room for the diversified automakers.”

It modified into once lengthy forward of that, in early 2018, when Wood put a apparently unusual $4,000 per-fragment tag goal on the stock. By early 2020, she had upped that call to $15,000 per fragment, with a timeframe of 2024.

Regardless of all her critics, Wood modified into once precise. Her bullish calls were made forward of Tesla did its 5-for-1 split, so the worn $4,000 and $15,000 tag targets work out to $800 and $3,000, respectively, post-split. Tesla hit $800 per fragment earlier this year and stays shut to that stage. That’s taken $10,000 invested this time final year at a stage closer to a split-adjusted $160 per fragment and became it into virtually $50,000.

TSLA Chart

TSLA recordsdata by YCharts.

As for Tesla reaching $3,000 per fragment, that would possibly well maybe maybe take about a extra years. But Wood hasn’t retracted that call and is soundless at the side of to what’s already an large function in Tesla in her ARK Make investments ETFs.

Extensive bets on Tesla

You might not earn a stock among ARK Make investments’s ETFs that has extra money invested in it than Tesla. The following ETFs respect positions:

  • The flagship ARK Innovation ETF (NYSEMKT:ARKK) is ARK Make investments’s largest vigorous ETF and holds 3.1 million shares price virtually $2.48 billion today prices. Tesla makes up almost 9% of the fund’s full property.
  • ARK Self sufficient Skills & Robotics ETF (NYSEMKT:ARKQ) is method smaller nonetheless has an very splendid bigger concentration in Tesla stock. The fund holds about 511,000 shares valued at larger than $400 million, making up pretty below 10% of the ETF’s property.
  • One more 1 million shares of Tesla are within the fingers of ARK Next Skills Web ETF (NYSEMKT:ARKW). Those shares respect a tag of pretty terrorized of $800 million, representing 8.5% of property below management.

A minimal of for now, Wood hasn’t came throughout any formulation to encompass Tesla within the holdings of ARK Make investments’s genomics or fintech ETFs. Alternatively, with the Elon Musk-led company, you beneath no circumstances know what would possibly well maybe well be in store.

Taking a look for extra Tesla

Regardless of those extensive positions, Wood stays bullish on Tesla. Proper this week, she said that ARK Make investments has been shopping for shares. Wood pointed to the doable price of trail-hailing as one more market for Tesla to tap into.

Tesla continues to encourage both bullish and bearish calls throughout the funding neighborhood. But two things are obvious: Wood’s perception within the EV pioneer hasn’t wavered, and to this point, her calls about her authorized stock respect panned out extraordinarily smartly for ARK Make investments’s shareholders.


Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.”>

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