Cathie Wood's interview with CNBC | What she thinks of the recent sell-off | Stocks that ARK is looking at

*Please do not take below write-up as a tip for any buy and sell. Information are mostly from CNBC's interview with Cathie Wood and are available for viewing to the general population. Please do your due diligence before investing.

Cathie Wood recently had an interview with CNBC on their show, "Closing Bell" on 7 May 2021. I actually chanced upon it as I saw that MeetKelvin was doing a live reaction to that interview which was about half an hour long. I have to say that it was pretty informative and I gained quite a lot of insights from it. I will have a rough summary below.

She loves the "set-up" of the current pullback as some rotation is seen from innovation stocks to energy and financial stocks.

To her, with a five-year time horizon, nothing has changed except for the price, the returns so far from the peak of the market in Feb 2021, they expected a compounded annual rate of return of 15% on average per year with their strategies. So with prices down right now, the expected compounded rate of return is expected to be around 25% to 30%. 

Read more: How my $700 per month will fare in 10 years

3D Printing ETF is a subset of the ARK Space Exploration and Innovation ETF (ARKX)

She mentions that because 3D printing helps with aerospace and including space hence they would be included into the Space ETF. There is no double charges to the clients. The newscaster also asked why companies like Netflix is in the Space ETF, she mentions that because the satellite radio and satellite TV is what they are aiming to expose the world to hence the next frontier is not space tourism but connecting people to internet. Hence the satellites being set up can connect everyone to Netflix. She also mentioned about Deere which is a very progressive company embracing technology for farming as seen in drones being used for various processes in agriculture.

Tesla

She is grateful for the huge growth of ARK and have taken risk processes to ensure the ETFs do not hold too much of a single company. Definitely, she also talked about Tesla and it's autopilot. Some important information is that the autopilot will not involve radar but just rely on computer vision. About the recent autopilot controversy, Cathie mentioned that the opposite of autopilot is human driven travel which accounts for 80% of the fatality so autonomous will help with it. She is gauging that in the next 2 years there will be some surprising breakthrough in autonomous driving and Tesla will be at a larger scale than it's competitors for autonomous driving.

Read more: Buying Tesla Changed My Investment Strategy/Outlook

Zoom

I think something really unique that she mentioned about Zoom is that it is really good inter-company software whereas Microsoft which ARK uses for video conferencing is great for intra-company which means within the company, great to use Microsoft but for external, Zoom has great potential.

Apple

She mention that Apple is a cash-like innovation stocks, as they are not supposed to hold any cash for the portfolio, they place the cash into stocks like these and then sell when they need the cash to buy pure play or early stage innovation companies.

Twitter

Twitter is also another company that ARK has done an extensive analysis on and one analyst at ARK has done an in-depth research on Spaces which is a new way of having live audio conversations (think of something like clubhouse) and as well as tipping. She also mentions that Twitter is a platform where they push out their research and many people actually use Twitter to follow up on their analysis from there. Definitely one of their most productive network in engaging with their audience.

Bill Hwang of Archegos Capital Management provided seed funding for Ark ETFs

They met through Church in 2013 and Bill bought into Netflix which they both had huge conviction for. He also provided the seed for her first 4 ETF and he really helped them out as it was a time when most people was not interested in investing in an ETF. Cool backstory. If you would like to see the full interview, you can watch it here.

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