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 argues that the current system, where only a small percentage of people are accredited investors, is akin to saying you can't drive because you don't make enough money. She advocates for a simple accreditation test to democratize investment opportunities.

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 predicts that truly disruptive innovation could see a 40 to 45 percent compound annual rate of change in the public equity world. She suggests that the private world might experience even more significant changes.

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.