Dumping ARKK for the S&P index

Last year I wrote an article on how I went hard on Cathie Wood’s portfolio of stocks. Well, I don’t know how the F she lost so much money. She had a -24% return last year while the S&P index was up about 27%. It boggles my mind because she was all in on Tesla and that was up about 50%.

I mean, each individual stock I had written in the blog post – AAPL, SHOP, GOOG, ABNB, AFRM and even BYDDF were positive so I really don’t know how the shit hit the fan. Edit – found an article explaining why – she went hard on ZOOM and Teladoc – 2 stocks that I would have never touched.

See, once again Buffet was right – just stick to index funds; these hedge fund pickers will never beat it in the long run. Now do I think Cathie will beat the market this year? Possibly… Do I want to be in it with her to find out? NOPE.

9 comments on “Dumping ARKK for the S&P index

  1. I also had for awhile but gave it up as there were few stocks included that were truly “space” related.

    Mostly though I do dividend investing and preferably stocks that pay monthly rather than quarterly. I try to only hold companies that pay 15% or better. I find the regularity soothing.

  2. Chasing results is so tempting. Ms. Wood had such outstanding results in 2020 that a lot of people wanted in, and got in near the highs in Jan and Feb 2021. But great years are often followed by poor years, so a lot of people got disappointing results.

    S&P index funds did quite well in 2021, but that is largely because the trillion dollar giants got even larger – seemingly defying the old Wall St saying that “trees don’t grow to the sky”.

    So some reckoning may be due for the index funds in 2022.

  3. Yes, index funds are great but boring and currently do not provide the same type of diversification as in the past. Never before have so few large companies contributed so much to the growth of S&P 500. And the top 5-6 companies are all in similar sectors (tech). Can APPL really be valued at $4-5T in the next few years? Can Google & FB generate significant revenue outside the ads space? Even Elon thinks Tesla is overvalued. And MacKenzie Scott and Bezos need to stop selling AMZN stocks!

  4. zoom stock is ZM. I’m debating the same thing. I dumped all my 401k+match into ARKK in the beginning of 2021 lost big on it. I think I’ll keep it for a little longer to see what happens. There’s no rational reason to believe that ARKK holdings will appreciate. They all have crazy valuations even after the ARKK’s crash.

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