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- What are the pros and cons of Cathie Wood and ARK investments?<\/li>\n\n\n\n
- Why do companies go bankrupt?<\/li>\n\n\n\n
- How is the Chinese money supply so high without rampant inflation?<\/li>\n<\/ul>\n\n\n\n
Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n
Es posible que algunos de los enlaces y v\u00eddeos a los que se hace referencia s\u00f3lo est\u00e9n disponibles en las respuestas originales. <\/p>\n\n\n\n
Fuente de todas las respuestas: p\u00e1gina Quora de Adam Fayed.<\/p>\n\n\n\n
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<\/figure>\n\n\n\n<\/div>\n\n\n\nWhat are the pros and cons of Cathie Wood and ARK investments?<\/h4>\n\n\n\n
It is a great question as most people didn\u2019t ask this question last year – they merely thought it was a good idea to buy as it was going up in price.<\/p>\n\n\n\n
The price has now fallen by an incredible amount, which has resulted in plenty of people panicking.<\/p>\n\n\n\n
The problem here isn\u2019t Cathy Woods. Ultimately, tech stocks are volatile. The next generation of tech stocks is likely to be even more volatile.<\/p>\n\n\n\n
Therefore, it makes sense to:<\/strong><\/p>\n\n\n\n
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- Hold a large basket in an ETF rather than a few individual’s names<\/li>\n\n\n\n
- Don\u2019t panic during the huge swings<\/li>\n\n\n\n
- Keep allocations down to 5%-10% of a portfolio<\/li>\n<\/ul>\n\n\n\n
What most people did was:<\/strong><\/p>\n\n\n\n
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- Not care about the ETF when it wasn\u2019t doing that well in the early years<\/li>\n\n\n\n
- Only pay attention come 2020 when \u201ceverybody else\u201d seemed to be buying it<\/li>\n\n\n\n
- Then panic sells it in 2021 or 2022, rather than just holding it long-term.<\/li>\n<\/ul>\n\n\n\n
As I mentioned here, \u201cdoing your own research\u201d can be dangerous.<\/p>\n\n\n\n
I am sure the same thing could happen if Tesla, some coins, or various other investments lose 30%+. That 30%+ can become 80%+ if people panic.<\/p>\n\n\n\n
We even see people buying index funds and ETFs getting in at a height (1999) and selling at a low (2008) when the advocates of the funds make it clear you should just buy and hold for decades.<\/p>\n\n\n\n
I get some people writing to me saying \u201cthanks for suggesting X and Y investment, it has gone up\u201d, and others who complain about the opposite.<\/p>\n\n\n\n
The point is, short or even medium-term performance isn\u2019t a reason not to invest in something, or invest into something.<\/p>\n\n\n\n
US stock markets were stagnant from 1965 until 1982, and UK housing was from 1900-to 1960. That doesn\u2019t mean somebody who invested for the long-term was stupid.<\/p>\n\n\n\n
Likewise, some people invested into a one-stock portfolio and got lucky. That doesn\u2019t mean it is a sensible strategy.<\/p>\n\n\n\n
The key thing is just having a sensible, long-term portfolio, based on the available information, and not panicking too much in the middle.<\/p>\n\n\n\n
So, to answer your question, the cons are:<\/strong><\/p>\n\n\n\n
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- Mass hysteria towards buying the ETF at the time this question was asked.<\/li>\n\n\n\n
- You have the risk of a fund manager<\/li>\n\n\n\n
- It was always going to be a high-risk, volatile, ETF<\/li>\n<\/ul>\n\n\n\n
The main positive is that it is investing in high growth areas. So, if the stars align, it could still be a great bet within 5-10 years.<\/p>\n\n\n\n
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<\/figure>\n\n\n\n<\/div>\n\n\n\nWhy do companies go bankrupt?<\/h4>\n\n\n\n
The biggest reasons businesses fail are:<\/strong><\/p>\n\n\n\n
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- Not enough experience in the industry<\/strong><\/li>\n<\/ol>\n\n\n\n
It sounds obvious, but it is better to get a job, get good at it for many years, and then start your own thing.<\/p>\n\n\n\n
That is because you:<\/p>\n\n\n\n
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- Can see what is wrong with your company and industry. Then create a firm that solves those issues<\/li>\n\n\n\n
- Get good at the day job<\/li>\n\n\n\n
- Sometimes take client relationships if it doesn\u2019t go against the NDA.<\/li>\n<\/ul>\n\n\n\n
So many people, because of programs like Dragons Den\/Shark Tank, which I support, think business is all about the great, doing things differently, solving a unique problem, etc.<\/p>\n\n\n\n
Those things help but the execution is key. A fantastic idea that is executed poorly won\u2019t make money in most situations.<\/p>\n\n\n\n
A so-so idea can make loads of money if it is being driven by somebody with experience.<\/p>\n\n\n\n
Most successful owners who were first lawyers, recruiters, or whatever else they were, don\u2019t need a special idea to make something work.<\/p>\n\n\n\n
So, the following stats shouldn\u2019t surprise anybody:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
That doesn\u2019t mean you need to be 40 or 50 to start a business. Merely, 5\u201310 years of experience g<\/p>\n\n\n\n
2. Not preparing for black swan events<\/strong><\/p>\n\n\n\n
Things happen. Look at the last twenty years or so. We have had:<\/p>\n\n\n\n
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- 9\/11<\/li>\n\n\n\n
- The war in Iraq, Ukraine, and many other places<\/li>\n\n\n\n
- Covid-19 and lockdowns, alongside smaller crisis<\/li>\n\n\n\n
- The global financial crisis<\/li>\n<\/ul>\n\n\n\n
That is just to mention global trends and events. That isn\u2019t to mention the country, industry, or specific events.<\/p>\n\n\n\n
Getting money out of China got more difficult, which affected some real estate agents I know in China. People started to care more about health, which has been a headwind for certain smaller fast-food retailers. The list could go on.<\/p>\n\n\n\n
Businesses need to pivot when events happen and have a business that isn\u2019t ideally focused on one country. Having a single source of failure is always risky.<\/p>\n\n\n\n
- Not enough experience in the industry<\/strong><\/li>\n<\/ol>\n\n\n\n
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