Did you know that around 70 percent of Americans have no long-term financial plan in place? If you fall within this shocking statistic, it’s time to consider not only getting a budget together but also looking at investing some of your hard-earned cash before you retire.
What you need is an introduction to investing from someone who knows how to break it down into terms suitable for laypeople. And learning how to invest is an area that celebrated financial guru Cathie Wood specializes in.
Read on to learn Wood’s digestible investment strategies that actually work.
Let’s Introduce Cathie Wood
Cathie Wood is a LA native who studied economics and finance at USC.
Her first job out of college was at the Capital Group, where she really learned how to invest. From there, she moved onto investment advisory firm Jennison Associates—taking up the role of managing director—and then took a position at Tupelo Capital Services.
She later managed over $5 billion in assets as CIO at AllianceBernstein. There, she was instrumental in creating one of the early disruptive tech ETFs (exchange-traded funds).
However, Wood quickly found AllianceBernstein too risk-averse for her tastes since they wanted to keep their money in more secure portfolios. So she left the job in 2014 to form ARK Invest and continued pursuing her passion for new tech.
She learned most of the investing tips she happily passes onto her followers in these positions.
What Guides Cathie Wood’s Decisions?
According to this article, Cathie Wood is a dedicated Christian and Conservative. She supported Donald Trump’s 2020 re-election because she felt the administration’s economic policies alighted with her values of boosting innovation and lowering taxes.
She’s a strong advocate for alternative energy use. For example, her fund, ARK, is one of Tesla’s most prominent investors. She’s also passionate about cryptocurrency and plays down concerns around carbon consumption and instability. All of these factors inform her financial guidance and tips to investing.
What Are Cathie Wood’s Key Strategies?
Given that Wood believes disruptive technologies should be humanity’s focus for the future, her investing 101 strategies focus on these areas.
These include:
- Use Wright’s Law to determine and manage risk
- Develop a five-year financial outlook and review it regularly
- Share your research and funding strategies freely with others
- Organized your financial analysis based on themes
- Embrace diversity across sectors, cultures, and disciplines
Overall, Cathie Wood believes investors should not be afraid to support new products and services that promote change in the world.
Is Cathie Wood’s Introduction to Investing Right for You?
If your own values line up with Cathie Wood, then it might be in your interest to follow her financial strategies. Even if you oppose her political views, some of her advice may still be useful as an introduction to investing for newcomers to the stock market. Of course, there are a lot of financial gurus out there today, so don’t be shy to compare Wood’s theories with those of others to create your own approach.
For more financial advice for money newbies and cash gurus alike, read the other articles on our blog.
