Forbes

The Prophet and Her Prof­its

CATHIE WOOD has lever­aged her zeal­ous be­lief in in­no­va­tion into a $29 bil­lion-in-as­sets in­vest­ment firm and a $250 mil­lion net worth. Among her pre­dic­tions: Tesla will build a fleet of robo-taxis worth $1 tril­lion.

- By An­toine Gara

Cathie Wood has lever­aged her zeal­ous be­lief in in­no­va­tion—and her bold pre­dic­tions—into a $29 bil­lionin-as­sets in­vest­ment firm and a

$250 mil­lion net worth.

TTesla shares were limp­ing along around $200 in May 2019, about where they had traded five years ear­lier, when Elon Musk’s big­gest Wall Street booster tried a gutsy ex­per­i­ment. Cathie Wood and her Ark In­vest­ment Man­age­ment were al­ready well-known for their way-out-there pre­dic­tions that Tesla would build a fleet of robo-taxis worth $1 tril­lion and that its shares would soar 20- or 30-fold by 2023. Now she stirred the pot again by pub­lish­ing on­line Ark’s new bull’scase val­u­a­tion of $1.4 tril­lion, im­ply­ing a share price above $6,000, com­plete with every Ex­cel cal­cu­la­tion and as­sump­tion be­hind those es­ti­mates.

Crit­i­cism came fast and fu­ri­ous. Tesla short seller Jim Chanos, famed for un­cov­er­ing En­ron’s fraud, took Wood to task over Ark’s fore­casts of Tesla’s gross mar­gins. “[W]hat Ark has pro­duced is a for­ward pric­ing for Tesla, not a val­u­a­tion,’’ sniffed val­u­a­tion ex­pert Aswath Damodaran, a fi­nance pro­fes­sor at New York Univer­sity. The model, he noted, didn’t in­clude a dis­counted cash-flow anal­y­sis and car­ried in­com­plete fore­casts on the costs Tesla

 ??  ?? WFH Win­ner
As the pan­demic took hold, Cathie Wood loaded up on tech stocks that she cor­rectly pre­dicted would
lead the re­cov­ery— and bought her­self a
house in ritzy Hil­ton Head, South Carolina,
from which to work.
WFH Win­ner As the pan­demic took hold, Cathie Wood loaded up on tech stocks that she cor­rectly pre­dicted would lead the re­cov­ery— and bought her­self a house in ritzy Hil­ton Head, South Carolina, from which to work.

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