What Cathie Wood JUST Said | While the Market is Crashing

hey everyone kevin here here is a

synthesis of everything that kathy wood

just mentioned on the bazinga power hour

all right let's get right into it so

first kathy wood over at arc invest

many calling her the millennials warren

buffett

suggests that on tesla you have to

remember tesla has four big barriers to

entry

they have artificial intelligence better

battery technology more miles driven

and over-the-air updates now these are

the four barriers to entry that were

really

popularizing tesla back in 2018 and 19

so some of these like over-the-air

updates

maybe not that big of a barrier to entry

anymore as more and more automotive

manufacturers are adopting this

however kathy did tease that she has a

big new model coming out

for tesla within potentially the next

two weeks and she is going to

raise her price target will it be three

thousand dollars will be seven thousand

dollars again is she gonna go

ten thousand dollars who knows we'll

have to wait and see on this but i'm

tempted to make my own tesla model or

update my own tesla model before she

does

a big weight that she's including in her

new valuation folks for tesla

autonomy autonomy and the automation the

full self-driving betas that we've been

seeing

she is blown away by these so stay tuned

when you see tesla at 666

it's a buying opportunity because it's

obviously gotten so low

it's in he double hockey sticks she

didn't say that part i'm adding that

part now

regarding kathy's continued discussion

she talks about look

the way she buys is not momentum driven

the way she buys is she tries to look

for stocks that

much like when she started in the

industry have fallen through the crack

when people aren't loving a stock when a

stock isn't sexy because

people are ignoring it that's the time

to be buying that stock

especially if you have a very very high

conviction

and kathy wood specifically has high

conviction in any stocks

that she believes can ultimately be

quote

winner take most models winner take most

spaces are spaces like tesla where all

of a sudden tesla

with its massive lead is very likely

poised

to be a company that takes most of the

profits from the electric vehicle space

she enjoys investing in winner take spo

and win or take most spaces

but does not enjoy momentum trading no

momentum trading this is something very

very important to talk about because

there is a lot of conversation about

momentum trading especially on youtube

it's really sexy to go

all right we're going to get into this

stock yay it pumped all right let's sell

let's go to the next one

this works really well if you're early

but it's hard to consistently be

early and kathy wood says look when

stocks run

that's when we're not investing in them

and this is something that i teach

regularly in the stocks and psychology

of money group which you can get in with

for 38 off if you use that coupon code

hotel down below

get everything that i think about the

way i look at stocks and i have some

differences in the way that i think with

kathy wood so

i'm not a spitting image of kathy wood

at all we have some very different

opinions on some things

especially her beliefs on inflation

coming but stay tuned

i'll make a video on my differences uh

compared to kathy wood in the future

but anyway if you're looking for

something to maybe change your mindset

on how to invest

for long-term wealth definitely take a

look at the program linked down below

you get me in private live streams where

you can ask me direct q a

every day that the market is open okay

so back to kathy wood kathy wood makes

it clear no momentum trading when stocks

are going up we're not buying them

there will always be another opportunity

like what we're seeing this week

to basically buy the dip make sure to

follow me on twitter too because i sent

out a pretty

in my opinion powerful tweet on buying

the dip and why you want to avoid the

particular urge and i gave a special

comparison there so check that out at

realme kevin on twitter

anyway another thing that kathy wood

does which i think is very fascinating

and it's it's actually something that i

did

a little bit differently than she did

here so kathy woods says

that when there's a correction she likes

to concentrate into her high conviction

names

so i 50 50 agree with her here what

she's saying is she's willing to sell

off

her lower conviction names and

concentrate into her higher conviction

names

in a sell-off i do this a little bit

differently

in a sell-off i agree concentrate into

your high conviction stocks

today i invested 150 000 into the stock

market

i am buying the dip and i also sent an

alert to all of the course members in

the stocks and psychology money group

about exactly what i bought and i also

talked about that during the live stream

we went through the rationale this

morning

on the live stream for that uh the

private live stream but

while kathy wood is saying sell your low

conviction stocks and buy your high

conviction stocks in the dip

i agree with buying your high convection

stocks on the dip i prefer to sell my

low conviction stocks when the market is

a little frothy

in fact two weeks ago literally right

before

february 19th when the market started

its recent sell-off

i sold over one million dollars of stock

i think if i add it up correctly i'm

somewhere around having sold

1.7 million dollars worth of stock

that was me selling off my lower

conviction names or at least lower

conviction

where some of the prices were by selling

off at those prices

i was able to set myself up with cash to

buy in this dip

did i know what dip was coming no but i

wanted to

sell off my higher conv or my lower

conviction stocks

when the prices were high so i can take

some profits and take some sweet

attendees

and then look for opportunities again

especially in my high conviction stocks

the timing worked out perfectly in this

case now

kathy wood also says that she

she is surprised that tesla moved into

bitcoin so quickly

she mentions that tesla's got eight

percent of their cash in this is true

with their one and a half billion dollar

purchase

micro strategy is all in and square is

in at about 10

she believes look the only hedge that

she really takes because she was asked

about hedging and then went into talking

about

bitcoin which in my opinion is really

the only hedge she tends to take

is is bitcoin as a hedge towards

inflation she doesn't really hedge her

innovation or tech plays

you know some hedge fund managers like

to hedge those plays by going into

something like let's say a john deere or

a home depot or whatever right

we hear that often those are common

hedges to like tech and innovation

kathy's all in on tech and innovation so

instead of hedging against tech and

innovation

she actually doubles down on tech and

innovation by going into bitcoin and

using that as a potential hedge against

inflation

and she believes if all companies put

one to ten percent of their treasuries

or their available cash into bitcoin the

price of bitcoin could at the very

minimum double go to 80k

or go up an additional 400 000 uh that's

about you know that's if companies put

about 10

of their treasuries in then she talks

about nfts so she's really interested in

non-fungible tokens i

i'm a little lost on nfts okay and i

don't want to sound like a boomer here

but it's not just me not being bullish

on the concept of nfts

but i believe there's an inherent risk

in nfts that

when and if we have a severe market

correction these are going to be the

very first

assets to become extremely illiquid

because people are going to try to sell

these to raise cash to go buy

something else but then there won't be

any buyers around there in my opinion

are buyers now

because people are like ah

what else is there to buy there's so

much money flowing around now maybe

that's different right now because

things are correcting a little bit

but she's specifically interested in a

sync you could google that the letter a

and then sync like synchronous

uh async and she's interested in this

company async art

and this is where you can really invest

in layers of art where people can kind

of pay a royalty to invest in additional

layers

of art and modifying the underlying art

but the original

artist is is always known it's always on

the permanent blockchain record it's a

mutable

and this permanent record is something

that she thinks is very exciting

she also believes that roku is going to

be the neck and neck competitor to

uh controlling your tv with amazon she

doesn't

invest in amazon heavily right now she

did start investing in amazon a long

time ago

i believe she sees amazon is more of

like an apple more of a cash play

she didn't mention that this time but

she has mentioned that apple's kind of

like a cash play

and instead she sees roku as that

competitor as a potential winner take

most option this is kind of tempting me

to buy a tv just to try out roku a

little bit and see what all the hubbub

is about

because i do stand a little bit

different from uh kathy on on the tv

play

uh personally i i think amazon is a

powerhouse here and apple is

potentially a strong competitor as well

but maybe i'm personally missing

something on roku

so i'm going to go ahead and analyze my

weakness and

see what i'm missing on roku now zoom i

almost sold

zoom at the peak when it went up ten

percent well the recent peak when it

went up ten percent in after hours

but you know zoom is a relatively small

portion of my portfolio it's under one

percent

and i was looking at it and i'm like ah

do i want to pay the taxes right now

like

i kind of got maybe i got a little g

word where i'm like maybe if zoom runs

up to 500 i'll sell it

obviously in hindsight now i look at it

like maybe i should have actually pulled

the cell trigger because

zoom has sold off in the last few days

in this sort of correction environment

but that's okay i'm not worried i want

to minimize my tax liability

this year but you know anyway i know

many people they say kevin you shouldn't

always be worried about taxes no you're

right i shouldn't be

but i am focused on buying the dip and i

like buying the dip

could i have used that money and rotate

it into something like tesla sure

maybe am i going to at this point no i'm

not going to sell something when it's

down heavily

almost said nancy pelosi kathy wood

totally different video here kathy wood

did also double down on fintech saying

that fintech is the most misunderstood

industry and that digital wallets are

going to basically gut banks and that

banks are out

the digital wallets banking loans cash

app these are basically the future

now personally i'm a little frustrated

with square square missed some of its

revenue

projections that's not good for a

digital wallet company like square and

fintech company like square

so it does make you kind of maybe

question some of the valuation

and how much credit we're giving

companies like square and while kathy

wood might be counting out a jp morgan

you have to give jp morgan some credit

even though they might be

uh you know the big goliath in the room

and they're kind of the dated

infrastructure

uh jp morgan's they're working on their

uh stablecoin they already have the jp

coin up and running for their

institutional uh purposes

especially cross-border transfers and jp

morgan

might come in and surprise us as as they

sort of loosen

uh their company up a little bit a big

downside for jp morgan though is

regulation for example jp morgan can

only give you four mortgages

whereas a fintech can give you up to 10

mortgages

potentially up to 19 if you're married

and you take advantage of some of the

tricks i talk about

in the real estate investing course

which is obviously separate from the

stocks in psychology and money group but

you can bundle the two together

uh there and so uh well i guess the big

bottom line takeaway of all of this is

do as uh i've been encouraging

by the dip and concentrate concentrate

on your high conviction names here

it is not the time to sell when things

are selling off don't follow the crowd

in that sense don't momentum down

and sell and paper hand it's diamond

hand that's what you need to do

diamond hand it's times like this not

when times are green that we find out

who the true diamond handers are and who

the fakes are

anyway thank you so much for watching

folks i'll see you in the next video

you