Cathie Wood became one of the most popular institutional investors in 2020 because of her aggressive style of investing. Over the course of the year, it seemed like she could do no wrong, as all her portfolios crushed the market. Unfortunately for Canadians, most of her positions are comprised of American-listed companies. However, there are three stocks she likes a lot that TSX investors will be able to buy as well.
This seems to be her favourite Canadian company
Shopify (TSX:SHOP)(NYSE:SHOP) is her largest Canadian holding. As of Ark Invest’s latest filing, Shopify was the seventh-largest position held by the firm, a position worth US$1.2 billion. What’s even more impressive is that Cathie Wood decided to double her overall position in the previous quarter. Since the start of the year, Ark Invest bought nearly 600,000 more shares of Shopify stock. Why does she like this company so much?
Shopify has proven time and time again that it is a winner. Since its IPO, Shopify stock has gained more than 3,500%! While investors may think this growth could indicate that Shopify’s best days are behind it, I would strongly disagree. In Q1 2021, Shopify reported a 110% year-over-year growth in its quarterly revenue. This shows that the company has managed to continue growing even after the COVID-19 pandemic. Cathie Wood loves this stock and it may be time for you to consider adding it to your portfolio as well.
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This was a new position in 2020
Like many Canadian investors, Cathie Wood took note of the incredible run that Lightspeed (TSX:LSPD)(NYSE:LSPD) went on last year. During the back half of the stock’s 650% gain after the 2020 market crash, Cathie Wood decided to add the company into Ark Invest’s portfolio. This made Lightspeed only the second Canadian stock to feature in Ark Invests prolific portfolio.
Like Shopify, this company was a beneficiary of the COVID-19 pandemic. While many investors thought Lightspeed would suffer as a result of the lockdowns (hence its 70% drop last March), CEO Dax Dasilva was quick to act. At the start of the pandemic, Dasilva pulled out all the stops to ensure its merchants would be able to survive the pandemic. Lightspeed offered free services such as Lightspeed Delivery, Lightspeed eCommerce, and Lightspeed Loyalty. As a result, the company saw its value go through the roof, making shareholders very happy.
Are you interested in buying Amazon stock for $10?
The final position that Canadians can emulate isn’t a stock per se, but it’s an ETF. Cathie Wood holds all of the FAMANG stocks except for Google. This means that Ark Invest held positions in Facebook, Amazon, Microsoft, Apple, and Netflix as of the end of Q1 2021. Unfortunately, these stocks all trade on the American exchanges. However, Canadians can take advantage of the newly listed Evolve FANGMA Index ETF.
This ETF is the first of its kind, as no other firm offers a product that holds only the six big tech companies. When it was released earlier this month, Evolve set the price at a very affordable $10. This means that Canadians can start positions in six of the strongest market performers without breaking the bank.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Jed Lloren owns shares of Apple, Microsoft, and Shopify. David Gardner owns shares of Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. Tom Gardner owns shares of Alphabet (A shares), Alphabet (C shares), Facebook, Netflix, and Shopify. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Netflix, Shopify, and Shopify. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2023 $1140 calls on Shopify, short January 2023 $1160 calls on Shopify, long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple.