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> Ark Invest’s Wood joined the conversation Wednesday, saying investors in index funds like the S&P 500 ETF missed out on Tesla’s 400-fold appreciation before i
by jstx1 4y ago
> Ark Invest’s Wood joined the conversation Wednesday, saying investors in index funds like the S&P 500 ETF missed out on Tesla’s 400-fold appreciation before it was added to the equity benchmark
Cool, let's check how Cathie's active approach did in comparison. Surely they must have capitalized on that 400-fold TSLA appreciation that the index fund dummies missed out on.
Nope - https://www.cnbc.com/quotes/ARKK https://www.cnbc.com/quotes/ARKK - same levels as it was in 2018. And much less than the S&P500 returns. Turns out that it's very easy to spot the 400x opportunities when you're looking back in time.
- vba616 4y agoJust because someone ends up underperforming the market doesn't mean they didn't have any insights. It might just mean that after doing something right, they did something wrong that more than cancelled it out. This is why it's hard to learn from experience. For instance, right now, a lot of people may not understand the implications of inflation and sharply rising interest rates. Because people who were adults in the 70s are old and irrelevant, or deceased.