Carnage In High Growth Stocks! How To Act?
My worst investment mistake, which has made my portfolio even more antifragile.
To make a lot of money, that amount that allows you to make a “fu*k you money”, you need three key attitudes:
The deep conviction that it's possible.
An absurdly incendiary internal motivation.
Create an investment system far from the ordinary, which has worked for a few, and make it a way of life.
To achieve this third attitude it is necessary to fall. Today I am going to tell you about my biggest investment mistake, which occurred in a situation similar to the current one, with high-growth companies.
So I hope to help you out and save you a lot of money.
Last February I had a relatively large position (about 20%) in Cathie Wood's famous ETF, ARK Innovation (ARKK). This ETF is characterized by holding innovative companies with high earnings growth, such as Tesla, Square, or Teladoc. (Another very similar and better diversified ETF could be WCLD).
ARKK made from the March 2020 lows to February 2021 by 313% in just under a year (From that point on, there …