The market has been turbulent in recent weeks, with a wide range of concerns weighing on investors’ minds. Some are concerned about the valuations of artificial intelligence (AI) stocks and whether these players will live up to expectations. Investors have also questioned the state of the economy and are awaiting more clarity on the pace of interest rate cuts. Finally, the conflict in Iran has increased market uncertainty and as a result, the S&P 500 has gone from gains to losses several times in a short period.
In this context, it is impossible to predict how even the highest quality stocks will fare over a period of days or weeks. But if you’re a long-term investor, it’s a great idea to buy stocks during tough times. Long-term investing, or holding stocks for at least five years, is the surest ticket to winning in investing. This is because it gives you time to walk a company through its growth story, and time will limit the impact of bear markets you encounter along the way. Meanwhile, when stocks drop, you can take advantage of them at fantastic prices.
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Cathie Wood, founder and director of Ark Invest, knows this, which is why she often buys aggressively when others flee the market. Wood favors long-term investing and betting on innovators in all industries, from general technology to biotech, autonomous vehicles and more. Let’s take a look at two stocks you just bought after the recent tech pullback.
On March 3, Wood added more shares of Core tissue (NASDAQ:CRWV) to your flagship Ark Innovation finance. The company is the 21st holding company, with a weighting of 1.8%, out of a total of 45 positions. This is after CoreWeave shares plunged 14% in February.
CoreWeave fits well with Wood’s focus on innovation. The company is a key player in the AI ​​landscape, offering customers the ability to rent the best NVIDIA graphics processing units (GPUs) for your AI workloads. Capacity is a huge need right now as companies race to achieve an AI victory, and many don’t have the resources, time or need to build their own infrastructure. That’s why they were quick to turn to CoreWeave for their projects, resulting in explosive growth in the company’s revenue.
I would expect this to continue as we are in the early stages of applying AI to real-world problems and as it is increasingly used in this way, CoreWeave may benefit. GPUs are necessary for AI models to do their work, so businesses will still need access to this computing.