Source: Finance Association
① Cathie Wood “perfectly” missed Nvidia's rapid trend, and this round of gains could have brought it a return of 1.2 billion US dollars; ② Ark Investment has sold 1.3 million Nvidia shares since the fourth quarter of 2022. ③ Up to now, Cathie Wood still doesn't agree with Nvidia's sky-high valuation.
As it turns out, Cathie Wood (Cathie Wood), the head of ARK Invest (ARK Invest) and known as the “female version of Buffett”, is$NVIDIA (NVDA.US)$The decision to sell off most of its holdings when the share price was below $150 per share was wrong and costly.
According to calculations, Cathie Wood “perfectly” missed Nvidia's boom, and this round of gains could have brought it a return of 1.2 billion US dollars. Ark Investments has sold 1.3 million Nvidia shares since the fourth quarter of 2022, according to the 13F filing filed with the US Securities and Exchange Commission (SEC).
Unstoppable sell-off
It is worth mentioning that most of these sell-offs occurred in November 2022, when the release of ChatGPT ignited the market's enthusiasm for artificial intelligence, which in turn boosted US stocks. In the fourth quarter of 2022, the average price of Nvidia shares was around $146, but now the stock has risen to $1,095.95, an increase of 651%.
However, Ark Investments sold 859,000 Nvidia shares in the fourth quarter of 2022 alone, making a profit of $854 million less.
In February 2023, Cathie Wood said that although she likes Nvidia's stock, its valuation is too high. At the time, Nvidia's market capitalization was around $575 billion. Today, its market capitalization is around $2.8 trillion.
“We are bullish on Nvidia and we think it will be a good stock. It's a really good artificial intelligence company.” In an interview at the time, she said, “As a flagship fund, our goal is to gain the highest level of trust, which is partly related to valuation.”
However, Cathie Wood did not stop her steps of reducing her holdings of Nvidia: in the first quarter of 2023, 109,000 shares, and in the second quarter of 2023, 118,587 shares, and reduced her holdings by a total of 147,651 shares in the second half of 2023. Then another 81,239 shares were sold in the first quarter of 2024. As of March 31 this year, Ark Investment still holds 67,000 Nvidia shares worth approximately $75 million.
The valuation is too high
Moreover, up to now, Cathie Wood still does not agree with Nvidia's sky-high valuation.
In an interview, she said, “Actually, I've been watching Nvidia my entire career since it went public. It's a very cyclical stock, and overordering Nvidia GPUs could cause painful inventory adjustments for the company.”
“Everyone was excited and trying to get in at the same time, so there were double orders, triple orders, quadruple orders, then inventory revisions. We think this will happen again.” she said.
According to reports, Ark Investment has reallocated the proceeds from the sale of Nvidia shares to other potential artificial intelligence companies, even though these investments have yet to pay off.
editor/tolk