Top Cathie Wood stocks to buy in 2022? Basically, the star investor and I tick similarly when it comes to choosing growth stocks. Accordingly, it’s not surprising that their streaming or telemedicine stocks line up with my top holdings. Even if the volatility of our portfolios was not exactly our friend.
Either way: Cathie Wood invests in a company-oriented and long-term manner, and that too is something that her and my approach have in common. This is one of the reasons why I can say: The following three top stocks from the star investor’s portfolio are also on my watchlist and should land in my portfolio in 2022.
Cathie Wood’s top stock: Spotify
Perhaps you’ve already noticed the name of this top stock in the ranks of Cathie Wood’s Ark Innovation ETF: Spotify. The well-known music streaming service is prominently represented with a relative weight of currently 4.2%. Yes, even at the moment the star investor’s seventh largest participation.
What I like about Spotify is that they already have a strong, well-known music streaming brand. I think even the most famous brand. But also that there is still plenty of potential for monetization. At the end of the third quarter there were a total of 381 million users, but only 172 million of them were premium members. Which in turn accounted for over 2.1 billion euros of total sales of 2.5 billion euros in the last quarter.
This top Cathie Wood stock can therefore still gain a lot of room in terms of monetization. Either in terms of attracting new users for premium membership or the more efficient monetization through advertising purposes. Music streaming should continue to prevail in the long term, which is why this share is also attractive to me in terms of trend and business model.
Unity Software: The Excursion into the Metaverse
Unity Software is in turn a top share from Cathie Wood, which can already come up with an exorbitantly high quality. Ultimately, it is one of two leading providers of so-called engines, which are important for video game development. Concentration of a high market share can be an important trait for Foolish investors.
However, there is more to this investment. Yes, even a new dimension or a new universe: the metaverse. As this new reality needs to be shaped like a game in many ways, Unity Software’s solutions should be facing a great growth spurt from the metaverse. I don’t know Cathie Wood’s motivations, but I believe that should be her investment thesis. In any case, mine is long-term, which is why the share will probably end up in my portfolio in 2022.
Teladoc Health: Already a top share from me and Cathie Wood
Last but not least, Teladoc Health is also a top share of Cathie Wood, but also already in my portfolio. At its core, this shows that the star investor is convinced of telemedicine. With a relative share of 5.8% and still almost a billion US dollars in the shares, Wood has probably continued to invest in the sale in the past few weeks and months. Why not: The starting position has further improved operationally.
The management of Teladoc Health is now finally speaking of an addressable US market of over 260 billion US dollars. The sales that are now expected to reach 2 billion US dollars in 2021 are obviously just a small start in this large megatrend market.
I increasingly understand why Cathie Wood selected Teladoc Health as one of their top stocks. Especially since management is talking of further growth of 25 to 30% and sales of 4 billion US dollars by 2024 in the medium term. Definitely an interesting perspective, which I will also appreciate with additional funds in my depot.
The item 3 top Cathie Wood stocks to buy in 2022 first appeared on The Motley Fool Deutschland.
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Vincent owns shares in Teladoc Health. The Motley Fool owns shares of and recommends Spotify and Teladoc Health, and recommends Unity Software.
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