So why did kathy would sell so much palleter stock on friday? That's the question of this video. I want to give you a simple to the point answer in two maximum three minutes not longer. So, on friday, we found out that she sold a big chunk over palantir position, in fact a significant one. Now this is definitely not trimming her position.

This is a huge deal for her a lot of money, a lot of stock and obviously that did not help the avalanche that we saw in the share price on friday. In fact, i'm assuming this was quite a heavy contributor to that. The real question is: why would she do that now? The easiest thing for us to be is to hate on cathy, like jim cramer, does now jim cramer flips more than a winner schnitzel. You know, i mean the dude liked her year before now he hates her.

I mean he's just a shark smelling some blood in the water. I don't care. So the question is: what is her mental process? Why she's doing that? And basically, it's really hard for me to justify what she did based on the things she said so far, so kathy wood and arkhanvest positioned themselves so far as deep value. High growth high disruption investors.

Basically, her investment horizon is five years onwards, so she doesn't care about price action and basically very similar to what i've been saying about pilot here now earlier i made a tweet saying, hey. I think this latest price action on pallet here is going to expose a lot of these so-called long-term investors for what they truly are, and i feel like it kind of, would happen with kathy wood, because if you look at the fundamentals, nothing really changed. The q4 financials were stellar eps mess earlier. Miss is meaningless because it's an accounting thing and they made 1.55 billion dollars in revenue, which was 41 growth.

They made 424 in operational margin, free cash flow, so 30 cents on the dollar net operating margin without the stock based comp, which is not really the cash flow. It's a tax benefit company, so the people who understand that definitely saw that the financials were great but because it said miss on the eps and people sold off. So i think, hair selling off is basically exposing her a little bit for not being such a long-term investor unless she lost faith in volunteer. Basically, something happened that basically made her lose her faith in volunteer.

In that case, i would say: well that's legitimate, even if you're a long-term investor, if something happens, materially changing your position, basically saying hey, i no longer have that faith for the deep value in the next five years. It's okay! It's fair that she sold. But honestly, i haven't seen anything in the reports that suggest otherwise there's nothing in the reports to say that, and i haven't heard anything of that sort. In fact, the reports only make me more bullish because i see the growth in the commercial sector actually strengthening.

They did 130 percent commercial growth in the us 34 overall, 47 growth. On the government side i mean the numbers are phenomenal, so i was really confused. I was asking some friends and nobody really knows the answer for this. Until just a few minutes ago i saw a post from kathy wood.

It's a note that she, i guess, sent out and it says hey. We saw that the palantir government growth is decelerating. Essentially, what i mentioned in my video is that the pace at which the palantir government section is growing is slowing down, so they started the year with 76 and they finished the year with 26 per quarter uh. I have my notes here right here.

I can look at it if you guys want so they went from 76 to 66 to 34 to 26.. So it's a massive slowdown in the government growth section, so she's, basically putting out a note saying hey. So we saw this slow down in growth and we think it materially changes what's going on between them and the government they're losing their government business, blah blah and that's basically, she was implying. That's why they're selling, but that actually makes me even more confused because, if you're a deep value, high growth, high disruption, investor and palantir, why would you even give a you know a rat's ass about the government business and nobody that's in volunteer for the long term? Actually cares about the government business we're all focused on commercial side.

The government business has a low ceiling, it's already pretty much maxed out, there's not a lot of growth opportunities there. So we all look at the commercial sector. So again, there's a lot of contradictions and what she says what she does and her saying that she's selling out because of the government sector also makes no sense for a high growth, commercially focused investor. So, honestly, i don't know something happened that changed her mind or she got freaked out spooked out in any case, whatever the reason may be, i think that the latest price action is actually healthy for the company.

One of the biggest problems with volunteer is the composition of their shares. Right now we have 65 of the volunteer shares being held by retail investors, people who are not there for the long term for the most part. Obviously some retail investors are like me. There are long term plenty of those, but there's a big percentage.

That's not, and it's not really healthy for the company. If you look at a company like nvidia or coming like snowflake, they have about 70 percent of institutional investments. Palleter on has 35. It's way too low they're going to get fixed.

The company is going to be volatile. Like we've seen last week, every little fart is going to send the stock flying up or down and what's happening now, with the price pushing downwards we're going to squeeze out a lot of these guys and what's going to happen, unfortunately, for the retail investors is that The institutional investors will do what they do best they're going to come in at ten dollars or nine dollars or whatever it's gon na, be scoop it up for cheap when everybody hates it and they're gon na hold on to it until sentiment, changes and they're gon Na resell it to the same people who are starting now at twenty thirty dollars per share, it's exactly why institutionals always win because they come in when the sentiment is negative. It's like warren buffett said when everybody is fearful and greedy whenever it's greedy, i'm fearful they're literally gon na. Do this to the same people who are hating on penalty right now, but you know for me the truth is quite simple: palantir is either going to make me a multi-millionaire or it won't.

I won't know, neither will you for the next five to ten years. I'm willing to wait, i'm willing to ride it through no matter how insanely bumpy this ride is, and i'm assuming it's gon na, be like riding around one of those 1970s buses in south america on the cliff with like chickens and goats inside the bus. It's gon na be pretty much crazy and life-threatening, but i'm gon na write out to see what happens at the end and i think a lot of the people who were saying that the long-term in this don't have the stomach for this ride. So we'll see what happens sayonara via condos.