PortalsOS

Cathie Wood discusses how her investment strategy differs during bear and bull markets. In bear markets, they concentrate their portfolios based on a scoring system that evaluates management, execution, barriers to entry, product leadership, valuation, and thesis risk. In bull markets, they diversify as IPOs become more frequent.

Cathie Wood highlights the irony that people can buy lottery tickets or bet on sports, but can't invest in innovative companies like OpenAI. She believes this needs to change to allow broader access to innovation.

Cathie Wood suggests that retail investors should 'average in' every month, a strategy she has recommended to her children, to protect and grow their investments over time.

Cathie Wood explains that from 2019 to 2024, the Mag 6 tripled in valuation while truly disruptive innovation only increased by 30%. This was due to investors playing it safe by investing in large, cash-rich stocks. However, she believes that the time for truly disruptive innovation to shine is now, as risk appetite and time horizons are extending.

Cathie Wood praises Elon Musk's compensation structure, which is milestone-based and physics-driven. She believes it's a huge motivating factor and wishes more CEOs would adopt similar models, as it incentivizes reaching ambitious goals.