Kathy Woods, CEO of ARK Invest, likes a lot of stocks that can easily be bought and held for a decade or more — although their average holding period has never been close to that long. Here’s a summary of three of her and her team’s picks that would yield impressive 10-year holdings, leave them alone for most growing investor portfolios.
Tesla (TSLA -6.80%)the world’s largest seller of electric vehicles, can be credited with bringing electric vehicles into the mainstream.
Yes, the company is finally facing serious competition. Its founder Elon Musk also aims to have a social networking site Twitter, a development that has sparked drama, potential distraction, and questions about whether the deal will actually happen. Tesla shares certainly won’t win any valuable prizes, either, at 60 times expected earnings per share for this year, and 47 times expected results for next year.
It doesn’t matter in a 10-year time frame. Not only do you have to be willing to pay for quality prospects in the long run, but you can potentially expect to do so.
Plus, while new entrants pose a threat to its market share, Tesla is still the number one name in the business, and there will be plenty of work to do. The US Energy Information Administration believes that the number of electric vehicles traveling on the world’s roads will swell from about 9 million in 2020 to 672 million by 2050. Tesla won’t even have to capture the majority of this market growth to end that time period further. what I started.
kings (DKNG 0.00%) It operates at the intersection of fantasy sports with the increasing prevalence of legal sports-based gambling.
DraftKings was initially a platform for picking winners – and winning prizes. But the expansion of sportsbooks and new types of betting in professional sporting events really opened the door to app-based sports gambling. Last year’s revenue of $1.3 billion more than doubled 2020 net profit of $614 million, which in turn improved 2019 revenue of $431 million by nearly 50%.
Yes, the epidemic has helped, though not as much as you might imagine; Most of this growth occurred after the resumption of professional sports.
Instead, the main driver of growth here has been the inevitable rise of the industry after the 2018 Supreme Court decision to end the federal ban on sports betting. The ruling has brought the matter back to individual states, and so far about half of them have legalized it in one form or another. More is on the way too.
Powering DraftKing’s share in the growth of this organic market is partnerships with the professional sports teams themselves. Along with FanDuel, DraftKings is now the official NBA sports betting partner, as well as the official daily fantasy sports partner of the Boston Bruins professional hockey team. And this is just a sample of these partnerships.
As for what long-term investors should look forward to, chew on this: ARK Invest believes the annual sports betting market in the US will grow from about $10 billion now to $37 billion by 2025. Research firm Technavio forecasts growth in the gambling market Global sports at a rate of 10% annually through 2025 to be $100 billion more than the 2020 tally. No matter how you break it down, that’s a lot of opportunity.
Finally, add I am convicted (ADYY.F -9.74%) List of Cathie Wood stocks you have to consider buying and holding for the next 10 years.
Don’t let the over-the-counter (OTC) list fool you. These aren’t some of the stocks that can’t qualify for a listing because they might not be here tomorrow. Adyen has a market capitalization of $48 billion, and generated about $1 billion in revenue last year, up 46% year over year.
The Netherlands-based company has not sought a US stock exchange listing as doing so can be expensive and complex, and does not offer any special advantage to the company in question. A lot of high-quality foreign companies are only traded in the United States on an OTC basis, including Nestle And Volkswagen.
Fine, but what is Adyen? is closer to PayPal Collectibles. In fact, in many places outside of North America – and especially in Europe – Adyen is the preferred digital payment name, just like PayPal here. Market researcher Slintel estimates that Adyen’s 22% share of the global digital payment processing market is second only to PayPal at 31%, in fact, and the company is working to bridge that narrow gap. Just last week, Adyen expanded its Buy Now, Pay Later partnership for Afterpay. And last month, Japan Amazon Added Adyen as a payment option for shoppers.
There is not as much information available to investors about Adyen as is usually the case about publicly traded US stocks. However, there is enough to appreciate that PayPal does not dominate every market around the world in the way it appears here.