Cathie Wood: How To Achieve A 31% Return Per Year (4 Investing Rules)

See My Portfolio & Where Opportunity Is In The Market (Discount): https://theinvestingacademy.teachable.com/p/theinvestingacademy?coupon_code=SALE&product_id=4455382

Cathie Wood is one of those investors who has become more prominent over the past decade. In this video we go over 4 investing rules she's followed to get an annual return of 31%...

__________________________________

Cathie Wood founded her investing firm Ark invest in 2014, since inception she’s achieved a 31% annual average return. That’s around 2 and half times more than the return of the S & P 500.

Now this wasn’t just luck, funnily enough it’s not easy consistently beating the market year in and year out, yet alone beating it by more than 2 times the amount. No she achieved this through calculated investing principles and calculated investing moves. So what we’re going to do in this video is show you 4 rules Cathy Wood used to absolutely trounce the market…

Rule 1: Invest In Innovation

Ok, what is Cathie Wood most known for? What is the main way Wood has made so much money through her investments?

Those who follow her will know the answer to this, it’s by investing in innovation. And with that I mean innovative companies that are changing the way the world operates.

Right, let’s think about this for a second. What were the companies that made the highest returns over the past decade?

They were the likes of Netflix. Over a 7000% percentage return in 10 years. Netflix they were innovative, they were disruptive in the film and media sector. Absolutely changed the way people watched films and content.
What is it $14 a month, you can watch thousands of different movies and tv series, anytime you want. Don’t have to go to a movie theater, or wait hours for it to come on tv, no Netflix changed all that, through innovation.

Same with Apple, over a 1800% return in 10 years. They changed the way we used phones. They changed what phones can do. Who would have thought 10 years ago, the amount of things you can do with a simple smartphone in your hand. Apple dreamed it up through innovation and made their investors ridiculous returns…

Facebook another example. An extremely high return over the past decade.
No need to send letters anymore, or post pictures, or dial a phone. Just upload to Facebook. Or take 2 seconds to send a photo or message.

It’s these disruptive companies that have made the most money, the highest returns and these are the types of companies that Cathy Wood focuses on! The ones that will do this over the next 5, 10 years…

So, if we go to her website, on Ark Invest, under Fund Description and Objective. ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works.

And when you buy companies that do this, it’s a game changer with investing. Because the growth opportunities with these companies is not just 50, or 100% growth, they have the capacity to quadruple, 10 times, 20 times the initial investment.

This is why Wood says people who want to succeed should think like a disrupter, "That's going to become more and more true, because so much is changing," in the world…

Rule 2: Stick To These 4 Sectors Over The Next 5 Years

There are 4 sectors that Cathy focuses on when it comes to her stock investments. These sectors are high growth. These sectors have the ability to compound at gigantic rates over the next couple of years and they all have what we talked about earlier. They’re all disruptive.

Ok so let’s read this on Ark invests website.
Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of…

DNA technologies (‘‘Genomic Revolution”), industrial innovation in energy, automation and manufacturing (‘‘Industrial Innovation’’), the increased use of shared technology, infrastructure and services (‘‘Next Generation Internet’), and technologies that make financial services more efficient (‘‘Fintech Innovation’’)...

Subscribe Here: https://bit.ly/2Y1kNq8

___
DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.