Cathie Wood’s flagship fund Ark Innovation ($ARKK) lost 80% of its asset value. She keeps talking about disruptive innovation and about how it will change the world but will she be able to outperform the market?
Part 3: I, again, keep going over interviews with her where she talks “disruptive innovation”.
The risk I see with her approach is:
1. Picking the right “disruptive innovation” is tough since you have to trust in future impact. You must be very confident in your ability to research and predict.
2. Picking the right companies in that industry is also tough. You cannot invest in an industry, you invest in companies. You do not benefit from the disruption if you bet on the wrong horse. And you do not want to invest in the worst company in the best industry.
3. Having a “disruptive innovation” and a great set of companies is awesome but what if the unit economics and the business model just don’t work? Disruption is betting on future profit by design since it is still the underdog. As a result, most companies in this space are unprofitable or even pre-revenue. What if their business models will never work even if the tech is great?
4. Time. Disruptive innovation has no schedule. How long will it take until the innovation is profitable? 1 year? 2 years? 30 years? DeepTech and innovation businesses often require patient capital and a lot of time. Is this a suitable segment to go all in on as an investor?
Well, let’s see how it goes. I am always happy to learn and if she and her team actually manage to succeed then I am happy to do a follow-up video. If she crashes and burns, I will be there too. It’s all content after all.
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Cathie Wood is an American investment manager and the founder, CEO, and Chief Investment Officer of Ark Invest, an investment management firm based in New York City. She is known for her active management approach and her focus on disruptive innovation and technology.
Wood started her career in the financial industry in the 1980s as a research analyst covering the technology sector. She has worked at several firms including AllianceBernstein, where she served as the Director of Global Thematic Strategies and was responsible for the firm’s Thematic Portfolio Series.
In 2014, Wood founded Ark Invest, an investment management firm that focuses on disruptive innovation and technology. The firm’s flagship fund, the Ark Innovation ETF, has attracted significant attention and assets under management due to its strong returns and focus on technology companies such as Tesla, Square and Roku.
Wood is known for her expertise in disruptive innovation and her ability to identify and invest in companies that are poised to benefit from technological advancements such as automation, artificial intelligence, and the Internet of Things. She is also known for her long-term investment horizon and her willingness to take concentrated positions in her portfolios.
Wood is also a frequent speaker and commentator on financial and technology trends. She has been featured in various media outlets such as the Wall Street Journal, Forbes, and CNBC. She has also been recognized for her work in the industry and has been named to various lists such as the Forbes Midas List of the world’s top venture capitalists and the Institutional Investor’s list of the top 100 money managers.
18 gedachten over “Cathie Wood: When you are Blinded by Sparkly Innovations (Ark Innovation – pt3)”
Zoom is at 20 billion now lol
You two should just write a book
Her answer on NFT is terrifying. My dead grandma can explain it better. I think we are only starting to realize how big of a failure Arkk is. God help us.
What she is describing is a thing.
About 20 years ago, my friend was writing patent/soft to basically track a piece of digital art/creative work.
So basically digitally tracking "NFTs".
For example, you can purchase an audio track & write your own lyrics on top, & your new song will contain a trace to all of the original NFTs.
Then the owner of the original sound track can collect the royalties …..
It was always a problem for the artists to track their art & to receive the royalties for their work.
So what she was describing is a thing.
And it could be very popular.
His she funded by Soros?
I wouldn't worry about the Queen of future investments. Her greatest "program" will be to have the world invest in the new Martian Technology that she has the inside information that they plan to build a facility in South Africa. And yes, it will be a 10 year plan that will be implemented soon. So please stand by.
NFT is kinda like a retail worker demanding to copyright their window display.
It feels like she just wants to be contrarian even if it makes no sense.
Investing is for dumb people who "hope" that the propaganda, a company puts 85% of their efforts into, will actually pan out.
Good luck with that.
Buy the company outright, or buy sp500 if you don't have the capacity to run and purchase a company. "All in" or be a dilettante.
She is just talking out of her ass… I just wish someone keeps track of her predictions and show the world how wrong she has been.
Thinking Roku is an OS and has anything to do with POTS is nuts. She has no idea what she's talking about. She's like Musk, just spew bs.
I know you're trying to be nice to her… but to me, she seems like what an old boss of mine used to call "an empty suit." There is no "there" there. Fluff words, not enough substance. I wouldn't give someone like that a dime of my own money to invest.
When she said Quibi 😅
Epic partnership between Cathie and meg Whitman when?!
Brace yourselves for the incoming innovation. Have you heard about advertising, on the internet!? its the future!
"The meaning of life is to find your gift. The purpose of life is to give it away." –
I think her fund with be "defunded" during this coming recession.
Cash app is the most confusing. I work at a bank in Africa and literally out app does all the things cash app is talking about, except I know my money is safe as opposed to limited kyc. It’s the strangest innovation for me as someone whose been working on building just these things that she describes as innovative. I mean Kenya has been using mobile numbers for years to send money between unbanked populations.
I want to think she has ideas but then i listen and I’m confused.
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