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Comment by nwsm | Hacker News Reader

Never heard of Ark. I checked out their site but can anyone give me some context on why they're notable?

Ark 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.

> 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!

Seriously? People aren’t investing in companies like Tesla, Square, Twilio, Paypal? That’s being unreasonably conservative.

Tesla at nearly 10% is unreasonable for an ETF. I hope it’s so overweight because of appreciation rather than active buying.

ARKK (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.

Hold 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...

You know, I thought I heard her say that in an interview, but I can't seem to find it. I might be wrong on this one.

They 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.youtube.com/c/Arkinvest2015/videos

Just 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.

Tesla is 9% of their portfolio. Tesla has a P/E of over 1000. It seems incredibly risky to hold Tesla now.

It's their strongest conviction holding. They're limited to 10% exposure to any 1 company...

Tesla 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

Do you expect $TSLA to stagnate for the next two years then?

No, 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.

I 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.

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