Warren Buffet Looking From The Outside: Michael Burry Attacks Cathie's ARK Innovation Fund!
- 3 years ago
Big Short Michael Burry, ARK's Kathy Wood and Warren Buffett
There are many investors who believe that Kathy Wood is the Warren Buffett of the new digital age. They also believe that the ARK Innovation ETF, which she manages, is the new Berkshire Hathaway, the investment flagship of the Buffett shopping legend. The fact that the "Big Short" of the markets, Michael Berry, opened short positions by betting on the fall in the price of the ARK Fund brought back to our minds the great sorting of mortgages in the USA.
Buffett's investment philosophy focused on the stock market in companies with strong brands (such as Walt Disney, Coca Cola, Gilette, Kraft, McDonald's, American Express and Bank of America), with significant and timeless access to consumers, with protected cash flows or with copyright.
According to Buffett, the investor should invest in companies that understand their business and value their management. At the same time, its investment company, Berkshire Hathaway, has no exposure to digital technology and economy companies, with the exception of Apple and Verisign.
Expressions such as "buy shares of companies that produce products that you understand", "it is always better to buy a great company at a good price than a good company at a great price", "buy something you would gladly keep if the market closed for ten years ", have become classics over time.
And the truth is that no short-sighted player ever thought of speculating, betting on the fall of Buffett and his investment company.
The investment philosophy of Kathy Wood and the ARK Fund is moving in a completely different direction. It invests the resources of its portfolio in companies of the new digital economy and mainly in technology companies that disrupt the existing structures of communications, production and the general operation of society. In companies that are at the forefront of innovation, artificial intelligence, robotics, big data and cryptocurrencies.
It focuses more on growth and prospects and less on profits and dividends. In the ARK fund, Tesla holds a prominent position with 10.6% of the portfolio, Roku with 5.4%, Coinbase with 5%, Zoom with 4.5%, Square with 4%, Shopify with 4%, Spotify with 3.3% and others. We easily notice that ARK has a large stake in companies involved in a cryptocurrency business.
The opening of the short positions of Michael Berry and Scion Asset Management in ARK follows the high profits that the legendary "Big Short" has already earned from the opening of short positions of 800,000 shares of Tesla. A $ 534 million short bet. Tesla shares have since fallen by 20%.
As in the move "against" Tesla, so in the move "against" ARK, Scion did not issue the slightest announcement to justify the choice of short. The position of Scion Asset Management became known from the published data of the SEC, ie the American Securities and Exchange Commission.
Katie Wood's response to the SEC announcement on the selection of a Big Short position a
There are many investors who believe that Kathy Wood is the Warren Buffett of the new digital age. They also believe that the ARK Innovation ETF, which she manages, is the new Berkshire Hathaway, the investment flagship of the Buffett shopping legend. The fact that the "Big Short" of the markets, Michael Berry, opened short positions by betting on the fall in the price of the ARK Fund brought back to our minds the great sorting of mortgages in the USA.
Buffett's investment philosophy focused on the stock market in companies with strong brands (such as Walt Disney, Coca Cola, Gilette, Kraft, McDonald's, American Express and Bank of America), with significant and timeless access to consumers, with protected cash flows or with copyright.
According to Buffett, the investor should invest in companies that understand their business and value their management. At the same time, its investment company, Berkshire Hathaway, has no exposure to digital technology and economy companies, with the exception of Apple and Verisign.
Expressions such as "buy shares of companies that produce products that you understand", "it is always better to buy a great company at a good price than a good company at a great price", "buy something you would gladly keep if the market closed for ten years ", have become classics over time.
And the truth is that no short-sighted player ever thought of speculating, betting on the fall of Buffett and his investment company.
The investment philosophy of Kathy Wood and the ARK Fund is moving in a completely different direction. It invests the resources of its portfolio in companies of the new digital economy and mainly in technology companies that disrupt the existing structures of communications, production and the general operation of society. In companies that are at the forefront of innovation, artificial intelligence, robotics, big data and cryptocurrencies.
It focuses more on growth and prospects and less on profits and dividends. In the ARK fund, Tesla holds a prominent position with 10.6% of the portfolio, Roku with 5.4%, Coinbase with 5%, Zoom with 4.5%, Square with 4%, Shopify with 4%, Spotify with 3.3% and others. We easily notice that ARK has a large stake in companies involved in a cryptocurrency business.
The opening of the short positions of Michael Berry and Scion Asset Management in ARK follows the high profits that the legendary "Big Short" has already earned from the opening of short positions of 800,000 shares of Tesla. A $ 534 million short bet. Tesla shares have since fallen by 20%.
As in the move "against" Tesla, so in the move "against" ARK, Scion did not issue the slightest announcement to justify the choice of short. The position of Scion Asset Management became known from the published data of the SEC, ie the American Securities and Exchange Commission.
Katie Wood's response to the SEC announcement on the selection of a Big Short position a