10 Best Stocks to Buy and Hold For 5 Years According to Cathie Wood

6. Invitae Corporation (OTC:NVTAQ)

Ark Investment’s Q4 2020 Investment Stake: $1.1 billion

Number of Q1 2024 Hedge Fund Investors: N/A

Share Price Performance Since 2020 End: -99.98%

Invitae Corporation (OTC:NVTAQ) used to trade on the NYSE back when Ark Investment bought a $5.2 million stock in the firm in Q4 2016. The firm provides genetic testing equipment, and its tale is one of caution for companies that try to grow too fast too quickly and rely on debt. To understand this, consider Invitae Corporation (OTC:NVTAQ)’s long term debt. It sat at $439 million in 2020, for a debt ratio of 0.13. In 2021 and 2022, the long term debt boomed to $1.58 and $1.59 billion, respectively as Invitae Corporation (OTC:NVTAQ) took on debt to fund a whopping 13 acquisitions. By 2022 end, the debt ratio was 0.82, which marked a 5x increase. As interest rates rose to combat inflation, Invitae Corporation (OTC:NVTAQ) declared bankruptcy in February 2024, and announced in April that it will be acquired by another firm. It was delisted from the NYSE in February, and Ark Investment sold its $20.4 million Q4 2023 stake in Q1 2024.