Cathie stated these innovative trends are occurring at a rapid pace, and that these trends are unstoppable and have just been unleashed. π
Innovation is solving way more problems than beforehand, now there are actually even more opportunities for innovation to perform.
However, Cathie states how public markets have not recognised this concept yet, and therefore innovative funds have been slashed. π
Many investors have stated that there are similarities between now & the dot-com bubble.
However ARK disagree: βwe couldnβt be further away from the tech-and-telecom-bubble. π
There are currently non-trivial examples of innovation producing amazing results.
One example is through the Human Genome Project, in which has experienced a DNA base sequencing cost decline of more than 700,000 gold since the inception of the project. π
Innovation solves issues:
Robotic automation can solve issues in order to create efficiencies she said.
Due to Chinaβs zero-COVID-policy, this has caused more disruption for supply chains.
Cathie said innovation will solve these issues through automation and data-usage. π
Cathie Wood mentioned how an interesting inflection point has been hit β namely the inflection point in which consumers are now preferring EVs over ICE vehicles slightly.
Longer term this is likely to bring prices down said Cathie. π
βThe move towards electric mobility is unstoppable and occurring at an unstoppable rateβ.
Will TESLA win? Let us know! π
Cathie has never seen as many opportunities within innovative investing as she does today.
"Disruptive innovation which is now valued at 10T dollars in public markets, which is roughly 10% of the global equity market cap, is believed to scale to 210T by 2030." π
Here is why $PLTR has potential to become the next $MSFT
Itβs all about network effects.
We did a deep-dive into Palantirβs UNREAL similarities to Microsoft.
Here is what we found out.
Network effects are split up into:
- Indirect: when platform or service depends on two or more user groups. As more people from one group join, the other group receives higher utility.
- Direct: value of a product or platform increases simply due to increases in user-base.
Example of Windows:
OS platform like Microsoft Windows is a good example of indirect network effects.
New Windows developers do not directly benefit each other, however with an increased library of Windows programs, the number of Windows users will grow.