Singaporean Talks Money

Monday, 10 May 2021

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%.

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.

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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Sunday, 9 May 2021

Becoming wealthy opens up opportunities for you | Why the rich will get richer | Dogecoin Millionaire Example

Hi Guys, today I want to talk about how the wealthy is able to become richer due to some factors. As the SNL performance inches closer, many investor of dogecoin has huge expectations. Even Elon Musk have posted a photo about the guest starring with dogecoin being in it as well meaning that he will certainly be mentioning about it.

So, on to today's topic on the rich becomes richer and the poor becomes poorer, this is something that has been amplified in the pandemic that has swept the world off it's feet since the start of 2020. As the rich is able to work from home and have the purchasing power to invest, their wealth has grown exponentially and the effects of the pandemic has not very much affected them except that there is an increase of zoom meetings and no travelling. On the other hand, jobs in the F&B services and airlines have been affected due to reduction in their services and with social distancing becoming a norm, many jobs are being automated if possible. Many people who used to live pay-check to pay-check suddenly loses their income which puts them on the brink of being homeless and relying on food banks.

This video is definitely not to talk about how life is so unfair but really to show the different opportunities that are available for you depending on your wealth status and also which city you are living in. I like to do a deep dive into how opportunities seem to come knocking on the door once you are able to attain a certain amount of wealth in your life.

Recently, I came across Andrei Jikh's video where he talked about a dogecoin millionaire named Glauber Contessoto who placed his life savings (What a courageous man!) into dogecoin when it was 4.5 cents, so once dogecoin rose and hit 45 cents, he became well over a millionaire in a matter of 2 months or 69 days. It is so crazy thinking about it. It could have been 0% if dogecoin crashed but well, he managed to X100 it. After he managed to X100 his money, he mentioned that he will be holding it all in dogecoin until the value reached 10 million (another courageous act from him). I won't go through on how he should be managing his money because well, I am not yet a millionaire but after he got his 1 million, many opportunities have come to him.

People want to know how you made your wealth

I guess you can see how many interviews or articles have been written about him. Many people are amazed at how he managed to become a millionaire within such a short period of time and most importantly, what went through his mind which made him smash all his life savings into Dogecoin. The thoughts that he was having and even now when he spoke of how he will be hodling until his portfolio becomes $10 million.

Even for other millionaires who got their wealth through a combination of their day job and investments, people are interested. Take for example TechLead which I love him for his humor and how he just causally produces his videos but has so much insightful points being presented. People are interested and they want to hear so then that brings me to my next point.

You are able to expand your network and work with other wealthy individuals

Andrei Jikh managed to connect with Glauber to find out more on how he did it and in a way after he became rich, so many influential individuals have reached out to him and in turn to share his experience, he has a Youtube channel now with almost 10,000 subscribers. It is growing pretty well since now he is known as the doge millionaire, even Google agrees. And he has been appearing on television as well as numerous interviews.

With this experience, being able to meet the various huge You-Tubers means that he will be able to connect with them and we can see this in Andrei Jikh latest video where he was introduced to Graham Stephan.

You have the capital to grow

Of course, most importantly, what makes the rich get richer is that they have the capital to build on whatever they are doing. For example, they can buy ads to promote their channel or even to organise giveaways to increase traffic flow. Definitely these are just a few but they can invest and grow with a larger capital, eg a 10% return on a $10,000 is only $1000 but a 10% return on one million is $100,000. Woah, huge difference right there. Building up your net worth is the first way to a million, there are many different ways to do it, dogecoin is one of it but how many can remain a millionaire in the long run or grow to be a billionaire, no one knows because the future is unknown. Look out for the SNL show in SG time as you can keep yourself updated through social media! To end it off, work on yourself and your present state, what will be yours in future will come. Hope you guys enjoy today's video, as usual smash the like button and subscribe to my channel for more content!