ARK Investment

Discussion in 'Shares & Funds' started by Redwing, 30th Mar, 2021.

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  1. Redwing

    Redwing Well-Known Member

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    [​IMG]

    Wood, Buffett Post Similar 2-Year Gain With Divergent Strategies

     
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  2. Redwing

    Redwing Well-Known Member

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    Are you suffering from headache, nausea, or increased blood pressure from the threat of disruptive innovation? If so, you may be associated with a portfolio that is based on the traditional world order.

    Many investors want to achieve long-term growth, but appear to be worried about the short-term volatility associated with innovative companies. They fear companies that offer newer, faster, cheaper, and more creative products and services, and, based on history, prefer broad based indexes, which include physical bank branches, bricks and mortar retail, linear television, freight rail, and traditional transportation.

    Should investment portfolios stay the same as they've always been? Or should they change as the world innovates and evolves? Download ARK's Bad Ideas report today!


     
  3. The Falcon

    The Falcon Well-Known Member

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  4. TickerHound

    TickerHound Well-Known Member

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  5. Piston_Broke

    Piston_Broke Well-Known Member

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    Read up her history, she's done this a few times before and always lost investor's money while making lots for herself.
    If this one worksout, it wil be the first.
     
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  6. Mark F

    Mark F Well-Known Member

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    ... and she can always blame god for screwing up the investments but perhaps god is seeking a more humble financial apostle. :rolleyes:
     
  7. TickerHound

    TickerHound Well-Known Member

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    Growths stocks outperform in a bull market, and underperform in a bear market.
     
  8. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Ouch https://twitter.com/larryswedroe/status/1496596597785907206

    "Investors chasing performance lesson: ARKK now down almost 56% in last 12 months while S&P up 9%. AUM down from peak at about $28b to now under $7B. So investors bought AFTER good performance and now fleeing AFTER bad performance as AUM down well more than NAV"
     
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  9. rocean

    rocean Member

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    Helps to know what one is investing in. ARK clearly state that they work on a 5 year time-frame, so it's probably to judge them on that? (166% growth past 5 years, and this is after they've supposedly crashed ;) )

    All their research papers are free in the public space and they can be kept accountable on it, not many other funds do that.

    Maybe don't invest in them if you're looking to cash out <5 years? Bargain territory in my opinion at the moment with majority of tech stocks hit hard.

    P.S: ARKK makes up 5% of my overall portfolio and dipping in small amounts every other day.
     
  10. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Which is great for anyone that was lucky enough to invest in ARK 5 years ago which was not most of the money. That's the point made by Larry's tweet.
     
  11. TickerHound

    TickerHound Well-Known Member

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    She has been averaging down in many of the leaders of the 2020-21 bull market. History shows most leaders top when their fundamentals look great, and they don't come back. A 5 year timeframe doesn't matter, in that case, unfortunately.
     
  12. Piston_Broke

    Piston_Broke Well-Known Member

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    After? They're only started to to crash.
     
  13. SatayKing

    SatayKing Well-Known Member

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    upload_2022-2-24_18-47-22.png

    upload_2022-2-24_18-48-14.png

    upload_2022-2-24_18-48-44.png
     
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  14. Piston_Broke

    Piston_Broke Well-Known Member

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    The pie in the sky corps will be the first to be ditched at the first sign of trouble.
    And down the list from highest to lowest PE.
     
  15. The Falcon

    The Falcon Well-Known Member

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    Just back of enveloped the numbers on ARKK vs S&P500 Total Return index going back to October 2014. +2.31x vs +2.3x

    This next bit has to hurt….ARKK has now substantially underperformed Berkshire Hathaway over the last 5 years. Over 1 year it’s -60% vs +20%.

    Cathie Wood is a charlatan for the Crypto gen.
     
  16. Hockey Monkey

    Hockey Monkey Well-Known Member

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    with 90% of the inflows to ARKK coming since 2020, most investors did a lot worse than the headline returns. Dec 2020 inflows were eye watering and just in time to catch the ride down

    ARKK: An Object Lesson in How Not To Invest
     
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  17. ozhiker

    ozhiker Well-Known Member

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    Down another 5% today
     
    Last edited by a moderator: 30th Apr, 2022
  18. The Falcon

    The Falcon Well-Known Member

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    Yeah money weighted returns have to be excruciating.
     
  19. sfdoddsy

    sfdoddsy Well-Known Member

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    There was an interesting recent article at Firstlinks about some of the Australian equivalents to ARK, notably HYGG from Hyperion.

    Lessons when a fund manager of the year is down 25%

    Until a few months ago, HYGG was the poster fund for growth. And if you had invested in it back when it was a managed fund (Disclaimer: I did) you'd still be doing OK.

    If you jumped in when it it became the much easier to invest in listed fund a year ago as many did ($1.7B FUM) you'd be rather miffed by the 36% (and falling) drop.

    The article makes a very good point. The active managers claim to be picking winners and have the skill to succeed in down periods. But the results basically suggest a buy and hold on strategy.

    There is nothing active in the sense of responding to market trends about it.

    Frankly, I think you're better off punting on something like GEAR. Sure it may drop in times like these, but assuming the markets do recover as a whole you at least have the chance to ride the recovery.

    As mentioned, I am still ahead on my Hyperion dabbles. But I found their rhetoric so annoyingly at variance to the reality that I cashed out out a few weeks back.

    All that remains is a portion of the $10K I put in on behalf of my 9 year old son as a Xmas present to teach him the power of long term investing.

    Given that $10K is now worth about $6K he thinks I am an idiot.

    :)
     
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  20. Piston_Broke

    Piston_Broke Well-Known Member

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    The tech category has always been the most difficult. Leaders end up being losers and unknowns end up being staples.
    Tech has never been about buy n hold until there are clear profitable long term biz models.
    Trying to indexfund the sector of unprofitable tech startups is futile even imo.
    Maybe better off just buying a bunch of penny stocks after a crash for $xx each and forgeting about all of them.
    Can't remember the person who did that after 1929 crash and did quite good....eventually.
     

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