Should I buy these top Cathie Wood stocks now?

Jon Smith takes a look at some of the hot stocks that Cathie Wood owns at the moment and decides whether he should jump in or not.

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When I think of well respected investors, high up on the list Cathie Wood. Given the volatility in the stock market right now, I want to look at what she’s holding in her portfolio. From this, I can analyse those stocks and see if I should buy as well. With that in mind, here are some of the Cathie Wood stocks I’ve been looking at.

A short-term dip I’m considering

The big one I want to talk about first is Coinbase (NASDAQ:COIN). Cathie Wood has been a strong advocate of the business. She even bought more shares last week after the share price fell on Q1 results. Over the past week, the share price is down 30%. Over one year, it’s down 76%.

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I looked at the company closely last week. The trading volume and monthly transactional users were both down from the previous quarter. With the crypto market also suffering from a sharp sell-off, this naturally hurts the Coinbase share price as well, being a crypto exchange platform.

I actually like this Cathie Wood stock and am looking at buying the shares now. The main reason behind this is that the crypto sector is cyclical. Right now is a bad time, yet I do believe in the long-term potential of the industry. Therefore, it makes sense to buy when the share price is low.

The electric vehicle giant

Another stock Wood holds is Tesla (NASDAQ:TSLA). Again, she’s been a vocal supporter of the electric vehicle manufacturer over the years. Personally, I haven’t agreed with Wood on this one for a while. For most of last year, the share price came with a huge premium versus current earnings. When I covered the stock in April with a share price of $1,000, the price-to-earnings ratio was a massive 219.

I do see Tesla as a great company though. In a similar way to Coinbase, I see electric vehicles as having a long-term future. But I couldn’t justify buying this stock at such high levels.

Fortunately, since the start of the year Tesla shares are down by just over 30%. Over a one-year period, the share price is still up 23%. This move lower in recent months does give me a better option to buy at cheaper levels. This is appealing, but I’ll be waiting on the sidelines before getting involved here as there may be further to fall.

Not just jumping in

As the above two examples show, I agree and disagree about some Cathie Wood stocks at the moment. Time will tell if I was right or not in those I chose to buy or avoid!

Yet the main thing is that I own my investment choices. It’s important to see what others are buying, especially well-respected investors like Wood. Yet I have to be active in my own decision-making in line with my investing goals for the future.

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Jon Smith has no position in any share mentioned. The Motley Fool UK has recommended Coinbase Global, Inc. and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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