Billionaire investor Dan Loeb is not impressed with Cathie Wood
2022.12.21 14:28
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Billionaire investor Dan Loeb is not impressed with Cathie Wood
Budrigannews.com – According to a tweet that was published on Wednesday, billionaire investor Dan Loeb is not impressed with Cathie Wood.
Third Point’s CEO, Loeb, suggested that Wood’s memo be utilized “as a treatise to study the mindset of stonk hodlers.”
In 2022, Wood’s exchange-traded funds were significantly impacted by rising interest rates and inflation, with Tesla (NASDAQ:) among the stocks. and Zoom Video Communications which she had bet would fall.
Wood has stated before that she looks for businesses that have innovations that have a big impact.
Wood released a memo earlier this month that defended the strategy of her company.
“We believe that the businesses in which we invest are sacrificing short-term profits in order to take advantage of the opportunities for extremely profitable growth and exponential growth that a number of innovation platforms are creating.” She wrote, “We do not appear to be investing enough to catch these waves of innovation for companies catering to short-term oriented investors and leveraging their balance sheets to pay dividends or manufacture earnings with share repurchases.”
However, Loeb, whose Colgate-Palmolive (NYSE:) holdings were the largest in the previous quarter, PG&E Corporation as well as the Danaher Corporation (NYSE:), “Anyone teaching a value investing class or one on investment psychology should use this memo as a treatise to study the mindset of stonk hodlers,” she stated in response to Wood’s posted memo.
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He went on to say, “Note the derogatory remarks about luddites who look at archaic measures of value like cash flow as short term traders.”
