10% of Cathie Wood’s Portfolio Is Invested in Elon Musk-Led Companies
Can Elon Musk live up to Cathie Wood's high expectations?
Overview
Cathie Wood is big on innovation. The CEO of Ark Invest believes disruptive technologies will drive significant productivity gains over the long run, and the companies at the forefront of that will deliver superior stock market returns. It's no wonder, then, that Wood has a stake in both publicly traded corporations led by Elon Musk: Space Exploration Technologies (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA). Musk is also a believer in the power of innovation, and he has an impressive track record. SpaceX and Tesla account for about 10% of Ark Invest’s total holdings (as of writing). That's not insignificant. But is that a good move?
Image source: Getty Images.
Musk has accomplished phenomenal things as the CEO of Tesla and SpaceX. Consider his tenure at the head of the electric vehicle (EV) maker. When Tesla first got onto the scene, EVs already existed, but they were not exactly popular. Some thought they couldn't compete with gas-powered cars in terms of raw performance. Others thought they would never catch on because of a lack of charging infrastructure.
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Originally published at www.fool.com.