Cathie Wood has been making waves in the investing world for several years, but really came into her own last year. The founder and CEO of ARK Investment Management made her mark in 2020 when her five flagship exchange-traded funds (ETFs) crushed the results of the broader market, each delivering gains of more than 100%.
Given these spectacular results, investors have been paying particular attention to ARK Invest’s purchases of emerging and disruptive technology stocks that paid off so well last year. While these picks make a great starting point, I like to dig a little deeper, looking for companies with an industry-leading position, robust secular tailwinds, and a large and growing total addressable market, to better increase my chances of finding winning investments.
Let’s look at three stocks Wood added last week that meet these lofty criteria.
Unity Software: Providing the building blocks for games and much more
ARK Innovation (NYSEMKT:ARKK) ETF focuses on disruptive technology that could potentially change the world, which likely contributed to its decision to load up on Unity Software (NYSE:U). The company’s platform provides the building blocks to create and operate real-time 3D content. Developers use the technology to create mobile, PC, and console games, but that’s just the beginning. Unity’s software is also used by artists, architects, automotive designers, and filmmakers to create 2D and…