Cathie Wood: The Dominatrix of Disruption is at it again (Ark Innovation - pt2)

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 2: I 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.

🙏🙏🙏 Thanks for watching! 😊

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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.

🌐 Sources:

[rosethompson]

My favourite channel, I have followed his investor woman for years and your take on her is what I think too

[stevie]

Actually Cathy couldn't have "sold at the top"
Cathy was the marginal buyer.
Once Cathy started to sell large positions of these sub 3 billion dollar market Caps, there would be no buyers, ...only Cathy selling.
A crash follows.

[germanshepherd]

I love your videos! You so handsome and informative! Much love from 🇺🇸

[andrewstorm]

If you remove the peak the fund has done nothing!

[MajinHico]

In my opinion she will never rise again. She just was lucky initially and thereafter she had to deal with reality. Her confidence in the ability to predict future is nothing more than Dunning Kruger effect.

[delinquense]

Her investors truly embody the definition of morons. Each day that goes by reduces their ROI. They are so far behind the 8 ball now they can never catch up. Best case scenario is that they end up with the money they put into ARK.

Wood, onthe other hand, is a pure genius. She rakes in 10s of millions in fees for the vast amount of assets under management whether the fund goes up, down or nowhere! All she needs to do is find people foolish enough to believe anything she says.

[gilrose]

Kathie said in 2019 that Tesla was going to hit $4, 000. In EV's which car company brought to market first affordable EV's that the majority of buyer want? GM. BOLT and BOLT EUV. EV companies that make the $25k-35K EV's win!

[natiw]

everybody would have sold in the peak, the thing is to know when the peak is there!!

[Lucillevanpelt]

“Give Me Just a Little More Time" by Chairmen of the Board, 1970 I believe, foretelling…

[elquixote]

She still has no clothes, and people near her are running away in terror. And yet, she keeps gibbering 5 year plans. HOW PRECIOUS.

[testboga]

No expert can outperform the market in the long run without getting access to inside information. So you're either lucky or you end up in prison for insider trading.

[robertnolan]

One can almost bet that sometime within 5 years stocks will enter into a bear market. Cathy Wood and her Ark fund will not survive.

[delinquense]

It is so painful to watch her speak .... and even worse if I actually owned ARK!

[bettyboop-xgjo]

Hehe, she dumped Nvidia just before it exploded.

[French_Connection]

She is a single trick pony
Buy buy buy ...