The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: ARK Invest's Cathie Wood on Why ARK Has Not Had More Outflows Despite Performance, How the Global Tech Equities Market Will Go From $7Trn to $210Trn in 8-10 Years, The Future for Facebook and How Elon Musk and Jack Dorsey Could Create the Biggest Di
Nov 14, 2022
Cathie Wood, CEO and CIO of ARK Invest, shares her bold insights on disruptive innovation and the future of tech investments. She highlights her early start in finance at 20 and lessons learned from the dot-com bust. Cathie argues that benchmarks and passive investing are risky, cautioning against their influence on tech stocks. She anticipates a massive growth in the global tech market, exploring how new business models could reshape companies like Twitter and Facebook. With a focus on high conviction investments, she delves into risk management strategies amid market volatility.
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Dot-Com Bust Lessons
- At Tupelo Capital, Cathie Wood and her co-founder disagreed on investment strategy during the dot-com bust.
- They bought puts as protection, but her partner removed them after the Fed eased, leading to Wood's departure.
Conviction in Down Markets
- Despite significant drops in some stock prices, Cathie Wood maintains strong conviction based on ARK's research.
- She views these drops as increasing the potential rate of return over a five-year period.
Selling Strategy
- Evaluate stocks based on a 5-year hurdle rate of return.
- Sell when stocks fall below this rate, even if they are in high-demand sectors like AI.
