Cathie Wood: Elon & Twitter; Why Facebook is a Value Stock Now; ARK's Performance | 20VC #949

ℹ️ EPISODE INFO

Released

November 14, 2022

Duration

58m

Channel

The Twenty Minute VC

Watch on YouTube

▶ Open ↗

📝 EPISODE DESCRIPTION

Cathie Wood is the CEO & CIO @ ARK Invest, focusing solely on disruptive innovation, primarily in the public equity markets. ARK has become renowned for opening up its research and becoming a ‘sharing economy’ company in the asset management space. Prior to ARK, Cathie spent twelve years at AllianceBernstein as CIO of Global Thematic Strategies where she managed over $5 billion. Cathie joined Alliance Capital from Tupelo Capital Management, a hedge fund she co-founded, which managed $800 million in global thematic strategies. Prior to Tupelo Capital, she worked for 18 years with Jennison Associates LLC as Chief Economist, Portfolio Manager and Director. ---------------------------------------- Timestamps: 0:00 Who is Cathie Wood? 1:15 What are you running from and towards? 3:45 Lessons from the Bust of Tupelo 7:25 Is there too much money chasing too few deals? 10:35 How do you handle being down 80-90%? 15:03 When is the time to sell? 20:32 Views on Risk Management 23:33 Why hasn’t ARK had more outflows? 26:27 Why does ARK make its research public? 28:38 Why did ARK launch a venture fund? 33:07 How incentives work in a 0% carry fund 38:57 How do you win access to the best deals? 43:55 Capital Planning in an Open Evergreen Fund 46:50 The Risk of Investing with ARK 49:03 Cathie’s Favourite Book 49:36 Why Facebook is a Value Stock 50:55 Elon and Twitter 53:17 Best Investment Advice Cathie Ever Received 55:17 Where would you put all your money? 56:22 Future of ARK ---------------------------------------- In Today’s Episode with Cathie Wood We Discuss: 1.) Entry into Hedge Funds at 20: How did Cathie get her first role in the world of finance at the tender age of 20? What is Cathie running from? What is Cathie running towards? What are some of Cathie’s biggest lessons from seeing the dot com bust at Tupelo? What does Cathie know now that she wishes she had known when she started investing? 2.) Why Benchmarks and Passive Investing are Bad: Why does Cathie believe that benchmarks and indexes have become dangerous for consumers? Why does Cathie not believe what everyone else does regarding inflation? How much of the performance of large-cap tech stocks is tied to the growth of passive investing? Why does Cathie think the Fed is making a huge mistake? 3.) Time to Pick Companies: Why does Cathie believe that Facebook is emerging as an attractive value stock? How does Cathie believe Elon Musk and Jack Dorsey could build the largest universal wallet? If Cathie were to put all her money into one of their companies, what would it be? Why does Cathie believe Zoom is one of the most misunderstood companies? 4.) Why Venture: Why Now: Why did Cathie decide to do a venture fund with ARK now? Why did Cathie decide to do a no-carry structure with a higher management fee? How does that align incentives with investors? In venture, the asset chooses the capital, how does Cathie analyze why the best founders in the world will pick and work with ARK over other amazing VCs? What is the single biggest risk you are underwriting when investing in ARK’s venture fund? ---------------------------------------- Subscribe to the Podcast: https://www.thetwentyminutevc.com/cathie-wood/ Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Cathie Wood on Twitter: https://twitter.com/CathieDWood Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok ---------------------------------------- #CathieWood #ARKinvest #venturecapitalist #HarryStebbings #20VC

🎤 SPEAKERS

• Harry Stebbings

  host

• Cathie Wood

  guest

🧾 EPISODE SUMMARY

In this episode of The Twenty Minute VC, featuring Harry Stebbings and Cathie Wood, Cathie Wood: Elon & Twitter; Why Facebook is a Value Stock Now; ARK's Performance | 20VC #949 explores cathie Wood Defends Disruptive Innovation, Active Investing, And ARK’s Future Cathie Wood discusses her journey in finance, her rejection of benchmark-driven passive investing, and why she believes disruptive innovation is massively underpriced in public markets. She explains ARK’s research-led, high-conviction approach, how they manage extreme volatility, and why concentration and continuous re-underwriting are core to their risk management. Wood outlines ARK’s new retail-focused venture/interval fund, its 0% carry structure, and how ARK aims to give non‑accredited investors access to private innovation usually reserved for institutions. She also shares her views on Tesla, Facebook/Meta as a value stock, Elon Musk’s Twitter acquisition, and her long-term vision for ARK as both an innovation investor and global education platform.

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