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@jimcramer $ARKK $ARKW $ARKF $ARKG $ARKQ Thus article is totally fair if you read and listen to him with an open mind. People like winners and ARK is winning. Cramer worries about investors trying to copy trades of ARK Invest's Cathie Wood https://www.cnbc.com/2021/01/22/cramer-worries-about-investors-mimicking-ark-invests-cathie-wood.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
About 4 years ago, someone said to me “I’m not buying the ETFs because I will just piggyback when they start a new position in something”. Big mistake and I will tell you why. They buy things OFTEN in the shape of a U. When they start buying, they will keep buying for two weeks.
“Avg. Joe” investor doesn’t have this discipline. It’s smarter just to buy the ETF. PACB is one of their massive winners. They had to keep buying for up to 18 months to build a perfect position. Same with Tesla,ROKU, GBTC. Their U shaped buys last longer than U have ammunition !
People can certainly piggyback. It works BUT with a very long outlook. I worry about people that want to hold it for 2 days. Classic Example: This month they started buying Takeda Pharma, a BORING stock. After 3 weeks of ARK buying, just yesterday did it turn up & positive.
As a shareholder longer than most people,this is the magic of why you buy the ETFs. When I see a new position, I have ZERO expectation they bought the bottom. As a matter of fact, I hope it goes lower & often it does. They look at things for 5 years where piggybackers are 5 days
I’d own the ETFs vs. Piggybacking for the simple fact that the vast majority of their Multi-Baggers stay DOGS much longer than you have patience holding an individual stock. Average people are hardwired to sell stocks at the very worst times. Not ARK. Patience is brilliant.
Since 2017, I’ve owned each ARK ETF equally for the simple reason of CURING MY FOMO. I have zero need to buy/sell individual stocks because my buckets of 20% weight in each ARK ETF gives me the feeling I’m Active. I have no clue whether K,W,G,Q,W will lead. I’m covered. Cured.
