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Never heard of Ark. I checked out their site but can anyone give me some context on why they're notable?
by nwsm 6y ago
Never heard of Ark. I checked out their site but can anyone give me some context on why they're notable?
- Stanleyc23 6y agoJust a stock noob, but they are an investment company which markets things like ETFs for buying baskets of stocks. They are known for being big proponents of Tesla stock before it blew up. Now they seem to be considered thought leaders on what is the next tech stock to achieve Tesla-like returns.
- ketamine__ 6y agoTesla is 9% of their portfolio. Tesla has a P/E of over 1000. It seems incredibly risky to hold Tesla now.
- LanceJones 6y agoIt's their strongest conviction holding. They're limited to 10% exposure to any 1 company...
- webinvest 6y agoTesla is expected to 4x it’s revenue in 2 years. So in 2 years that could be a much lower PE. Maybe try a PEG ratio or discounted future cash flows
- erhk 6y agoDo you expect $TSLA to stagnate for the next two years then?
- webinvest 6y agoNo, you’re misinterpreting it. I don’t expect Tesla’s growth to be flat for 2 years and then 4x in 1 quarter; that would be insane.
- dwohnitmok 6y agoI think parent is talking about the price of Tesla's stock, since your comment seems to suggest that this growth is already priced into Tesla's stock price, meaning that, based on that reason alone, Tesla's stock price is unlikely to increase in the next two years unless it exceeds even those targets.
- deleted 6y ago[deleted]
- isthispermanent 6y agoArk creates ETFs that focus entirely on publicly-traded future tech companies. They operate in four segments: Genomics, Robotics, Internet, and FinTech. You will find very few, if any, companies in the Ark ETFs that would be considered "safe" picks for most investors. This is a testament to the nature of choosing companies working on the forefront of technological breakthroughs. My summary spin on what they're doing is picking companies working on "what will be" as opposed to "what is". Wright's Law is their guiding light. Worth a Wikipedia browse.
- mhuffman 6y ago> You will find very few, if any, companies in the Ark ETFs that would be considered "safe" picks for most investors. That is an understatement! This table looks like a wallstreetbets word cloud!
- xwdv 6y agoSeriously? People aren’t investing in companies like Tesla, Square, Twilio, Paypal? That’s being unreasonably conservative.
- elliekelly 6y agoTesla at nearly 10% is unreasonable for an ETF. I hope it’s so overweight because of appreciation rather than active buying.
- Centigonal 6y agoARKK (and maybe their other ETFs) are capped at 10% per individual holding. They take profits when the holding becomes overweight. Cathie Wood has said she would hold more TSLA if she could. I don't know when or how they plan to exit if things start to go sideways.
- fma 6y agoHold more if she could? Not according to this interview. If we had not taken profits in its ride up from [$]178 to 900 or nearly 1,000, it would’ve been ... maybe over 20% of the fund,” she said. “That would not be wise portfolio management. We like to control our position sizes.” https://www.cnbc.com/2020/05/22/ark-invest-ceo-why-weve-sold-tesla-despite-our-long-term-bull-case.html https://www.cnbc.com/2020/05/22/ark-invest-ceo-why-weve-sold...
- sooheon 6y agoThey are notable for being good (or lucky) stock pickers bullish on trendy futuristic tech. They also have mounted an unprecedented marketing campaign that breaks away from typical Wall st old boy's club or stodgy retirement advisor style to masquerade as a tech company. Just compare: https://www.berkshirehathaway.com https://www.berkshirehathaway.com, https://www.youtube.com/c/Arkinvest2015/videos https://www.youtube.com/c/Arkinvest2015/videos