Saturday, February 19, 2022

Cathie Wood buys stocks like someone who just started yesterday, says Jim Cramer

Feb. 19, 2022

Here is the link. 

CNBC's Jim Cramer joins 'Closing Bell' to discuss today's market activity, as well as Cathie Wood's interview on the 'Halftime Report' today.

Arguments:

  1. Terminal value investor?
  2. Blackjack - 51% vs 49%
  3. Judge her now ARKK stock
  4. Bet on innovations - traditional fund - all money pullout
  5. Technology - SEcurity analysis - Trader - Correct price, Kathy skipped 2 and 3
  6. 2000 - true believer - No bets on this
  7. No one can create market by herself
  8. Dislike the way it is bought
Arguments:
  1. near-term price doesn't matter 
  2. bet on innovation    
  3. The market is getting completely wrong
Open transcript

00:00
joining us now for more on all the
00:01
market action jim cramer jim it's always
00:03
great to get your thoughts what did you
00:04
make of a day like today
00:06
well melissa today obviously just a
00:08
terrible day the juxtaposition of of
00:10
kathy wood on scott show with what
00:12
happened today and what will happen with
00:14
roku uh the ceo all very painful i think
00:17
it's painful because there's a lot of
00:18
new people have come in and you and i
00:20
have been around this and we know that
00:22
people tend to buy these very exciting
00:24
stories they bought excitement they
00:26
brought price to sales they bought
00:28
stories that sounded like you couldn't
00:30
uh you had the future and there you had
00:32
kathy wood and you you heard this sarah
00:34
she is giving you a view which just
00:36
basically says
00:37
near-term price doesn't matter but we
00:39
have people who are terminal by value
00:43
buyers who can't have that staying power
00:46
yes when you go to play blackjack at the
00:48
casino you're gonna it's 51.49 if you
00:50
hang on long enough but most people
00:52
can't and what we're seeing are people
00:54
who
00:55
are being blown out even if she's
00:57
soothing and i found it very disturbing
01:00
should we judge jim should we judge her
01:03
now i mean her highs and our etf was
01:06
february is it is the time frame too
01:07
short i understand your point i
01:09
understand that a lot of people have
01:10
lost a lot of hard-earned money but is
01:13
our time frame just too short to judge
01:16
you know a bet on innovation
01:18
i've been talking in many manners about
01:21
that and all of them said the same thing
01:24
which is that if it were a traditional
01:26
fund all the money would have been
01:28
pulled out because people can't afford
01:30
to lose that amount uh look i think that
01:33
innovation is a terrific thing but i
01:35
think that the way it should work is you
01:36
should have researched people and
01:38
and by the way i thought it was great
01:39
question my scottish and went fired you
01:41
said reachers people who are doing
01:43
technology and then it is given to
01:45
people who do securities analysis and
01:47
then it's given to a trader who tries to
01:49
figure out what's the correct price this
01:51
font this her she is just clearly
01:54
skipped step two and three and i don't
01:56
mean to i like what josh brown said i
01:58
have great respect for her but the fact
02:00
that i would never do this sarc this
02:02
short but but the fact is she's more
02:04
emblematic at the moment and we had
02:05
people were emblematic at the moment in
02:06
2000 and they are what i was just
02:08
telling the sarah green right true
02:10
believers and true believers are
02:11
terrific but melissa the problem is is
02:14
that as one of our guests said earlier
02:15
there are no bids for the true believers
02:17
the only real buyer of some of this
02:19
merchandise is kathy wood you cannot
02:22
create a market yourself nobody's that
02:24
big i do when i see her buying things i
02:27
am shocked at what she buys and how she
02:30
buys she buys like someone who just
02:32
started yesterday well but also i think
02:35
the structure of it she's an etf she has
02:37
to stay fully invested she has to keep
02:38
buying
02:39
i mean the conviction i think is what
02:41
you're talking about so would you touch
02:42
any of these arc names i actually like
02:44
actually well okay so let's distinguish
02:46
i actually like some of these companies
02:48
i dislike the way they were bought and i
02:50
really hate something called ubers
02:54
hubris is horrendous okay
02:56
humility is important when i screw up on
02:59
something like when i screwed up on
03:01
paypal you always i own it i wear it i'm
03:03
furious of myself but i screwed up i
03:06
would never in a million years tell you
03:08
but you just wait you just wait sarah
03:10
because when that thing comes back who
03:12
the hell has the right to say that well
03:14
and she also says the market is getting
03:16
it completely wrong there is no such
03:18
thing as the market being completely
03:19
wrong the market is an assemblage of
03:22
tremendous minds getting together and
03:24
they you may think they're your weighing
03:26
machine voting machine that's all
03:28
nonsense the market is about trying to
03:31
minimize losses and make as much money
03:33
as possible that's what the market is
03:35
and if you don't think that minimized
03:37
losses means anything then you should
03:39
just be running your own money and
03:40
nobody else's

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