The market has been turbulent in recent weeks, with broader concerns weighing on investors’ minds. Some are concerned about artificial intelligence (AI) stock valuations and whether these players will live up to expectations. Investors also questioned the state of the economy and awaited additional clarity on the pace of interest rate cuts. Finally, the conflict in Iran added to market uncertainty, and as a result, the S&P 500 moved from gains to losses several times in the short term.
Against this background, it is impossible to predict how much even high-quality stocks will fare in days or weeks. But if you’re a long-term investor, it’s a good idea to go shopping for stocks during tough times. Long-term investing, or holding onto stocks for at least five years, is the surest ticket to winning investments. This is because it gives you time to follow the company through its growth story – and time will limit the impact of the markets you encounter along the way. At the same time, when stocks fall, you can get them for great prices.
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Cathy Wood, founder and CEO of ArchInvest, knows this, and that’s why he often buys aggressively when others flee the market. Wood makes long-term investments and bets on innovators in industries ranging from general technology to biotech, autonomous vehicles, and more. Let’s look at two stocks she bought just after the recent pullback.
On March 3, Wood added more shares CoreWeave (NASDAQ: CRWV ) to her flag Arc Innovation The fund is the company’s 21st largest holding, with a weighting of 1.8%, out of a total of 45 positions. That’s after CoreWeave stock sank 14% in February.
CoreWeave fits well with Wood’s focus on innovation. The company is a key player in the AI landscape as it offers high-rent capabilities to customers Nvidia graphics processing units (GPUs) for their AI workloads. The capacity is sorely needed right now as companies rush to win over AI — and many don’t have the resources, time or need to build their own infrastructure. So they turned to CoreWeave for their projects, resulting in explosive revenue growth for the company.
I expect this to continue because we’re in the early stages of AI actually being applied to real-world problems, and as it gets used more and more in this way, CoreWeave may benefit. GPUs are essential for AI models to perform their tasks, so companies will continue to access these computers.
