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"Disruptive" and "game changer" are terms meaning WE'RE AS FAKE AS THERANOS.... I saw something, probably a Mike Winnet video (busts "conterprenuers") that was explaining all the terms cons use...
Hello Patrick love your content .. can you do a video on BRICS and what a BRICS backed currency would mean for the west and what it would mean for the BRICS nations would it benefit a nation like South Africa ? It also seems there are many other nations looking to join BRICS such as Mexico argentina Uruguay UAE.. thanks
another little known (by the public) problem with funds, money managers start funds with a small amount of money under management. They "nurture" this fund to create truly outstanding returns. Small funds can be nimble. (if they fail, the fund is quietly canceled.) With market-beating performance numbers, the fund is "marketed" to the general market of mutual fund investors. If this is successful, millions perhaps billions flow in. Money undermanagement is the goal. But the bigger the fund becomes, the less nimble it becomes. And the larger, less nimble fund begins to underperform. But the goal was to rapidly increase the money under management. If the goal was beating broad market indexes, they'd keep the fund small. But small funds are not very profitable... When looking at a "hot" fund, pay close attention to how large the fund was when it was creating market-beating returns. And then compare that number to the current size of the fund. A fund that's grown rapidly in size will likely fail to match its previous ROI.
I was invested in ARKK, but I dumped it last year and put the money into an S&P500 index fund when she started making inexplicable moves like YOLOing into Roku. I do not regret it.
I've been revisiting old videos and can't help but comment that this is probably my favorite suit of yours in the entire wardrobe. Very suave, Patrick!
Cathie Wood came to my notice last year when she remarked that a $10 drop in the iron ore price from $150 to $140 per ton was a disaster for Australian iron ore miners. She didn’t seem to be aware that their production price is around $20.
production price has nothing to do with it, it just slave wages that noone cares about, farmers sell tomatoes for 5 cents a kilo, but shop sells them at 2$, they need massive margins cause things go bad and opportunity cost of using logistics for something else more profitable than some low margin stuff
Cathie Wood is surely the serpent from the Garden of Eden. Like the serpent, she reverses everything. We say that stocks are overpriced, she says they are underpriced. We say inflation is incoming, she says that deflation is incoming. Etc. And she tempts people to buy stuff that they totally believe is wrong, likely utterly terrible growth stocks that hang by a thread that will most definitely break at some point soon. And if she's the serpent it explains why she has a beguiling voice and why she hangs around Christians and the Christian Church. 🙂
I feel enough attention isn't given to Patrick's deadpan humour. It really stands out in videos focusing on these kinds of subjects. It also helps make the videos more fun, memorable and approachable. As always, hope you keep up the great work Patrick! Thank you for putting out content like this!
Part of the problem is the cheering financial reporters and outlets. No body ever called her nonsense. There is no consequences for spreading nonsense. The fundamental flaw with an investing mindset is that investing appears to be replacing the idea of working for a living.
this is why it makes sense not to watch too much news or any at all, you literally become retarded, too filled with fear to even act on your obvious instincts. it is a global echochamber that enables stories alike to the kings clothings to play out over and over
Warren Buffet has made much the same points many years ago but I enjoy the additional information & analysis (and of course the humour) delivered by Mr Boyle. Every one of his videos is an education.
You killed it Patrick. I'm watching from a ghetto in Chicago and that was better than the action that happens on a Friday night in the inner city jungle. I always learn so much. Thank you.
The lesson to take away from Archegos and ARKK is to stay far away from religiously named funds and creators who think they've been ordained by God to make money in stocks. Successful trading requires more than paying a tithe.
I made a good couple of years gains just buying the Ark shares after KW bought them, just to sell 3-5 days later. This is mainly due to investors buying and selling shares in the daily Ark fund email updates. At one point I was fairly certain the reason for the regular updates was to drive the price up due to people copying the funds transactions, especially the buy signals. The daily updates were very much a free signals subscription.
I made over $120k doing this in 2020, mainly on TTD, Zoom, and a 3D printing company. I should’ve switched to shorting though, since I’ve lost a lot this year and have switched to mainly index funds and a few energy stocks. My strategy for 2023 is to DCA tech companies if I see any rebounding.
@@jannes9945 It's easy for HER to make money using other people's money with her bullshit lies but yes, everyone has beaten her because she lost to the broad market S&P when including dividends without having to worry about long term performance. That's also not even comparing her against QQQ which should be used when comparing ARK since she invests in basically all tech companies. QQQ absolutely destroyed her fund by a massive margin and is a significantly better investment than ARK. Her fund is terrible by every metric and you're lighting your money on fire by getting anywhere near this woman.
The finance media is partially to blame for this phenomenon. ARKs funds were presented as a winner on most if not all of the large financial publications at the time. Wood was interviewed everywhere and titled an investing genius. If one is a beginning investor (read: young retail folks) such clout might seem enticing. It requires someone with more experience and understanding of the finance market to be able to critically assess claims made by finance media and industry "experts". Same argument goes for crypto as all the way before the plunge of 2022 all the major finance publications were touting crypto as the future and I saw several articles where even women and minorities were tried to be tricked into crypto investing. This from respectable news publications.
thankfully there is now redit and other sources where we retailers constantly advise others to not listen to what corporate media is selling. a name comes to mind... Jim Cramer or something
I invested in ARKK and ARKG often in 2021. Fortunately I had well placed close stops so I hardly lost anything. I learned that if well placed stops get hit frequently, it's a downtrend - whatever anyone says. The big danger IMO is believing it's an uptrend or bottom when it isn't and taking those stops away.
Spot on . Tight stops = if the scenario is perfect it's cool . If it's invaildated by anything ( not really important what ) than we should get out and get in at a better point .
Even a broken clock is right twice a day. A crap investor will, from time to time, find their stock picks to be flavour of the month (or quarter). The clued up person does not confuse luck with investing skill Patrick you also made a very good point about low volume stocks - michael burry undoubtedly recognised that the value of Arks (and woodfords) portfolio was materially based upon the price the fund itself paid for illiquid small company's stocks - which artificially inflated their value vis a vis the real market price.
Woodfords prediction back in 1990s that the Internet will forever change business was not wrong. But picking stocks is harder - because one has to invest billions in high market cap companies like Exxon or AOL I suppose. Google and AMZN had paltry market cap. Similarly Cathy faces the same problem. She may be right on AI (I am a guy with deep finance experience who also has 18 years experience with machine learning). But to invest in AI is impossible as the total market cap in real AI companies is no more than $200M. Very little pure play AI companies out there. Almost none are publicly traded. Cathy may very well be right, but SEC laws prevent her from making pre-IPO investments.
@@Annou7la Actually that is the conclusion I kinda arrived at this point investigating investor efficiency lately. Every single piece of evidence seems to point to the direction of index funds with realatively low but - mostly very predictable and stable - returns. The incredible uncerteanty in the world right now, makes even these kind of secure investments somewhat of a risky proposition, the only difference comes out when you consider how risky also, to not invest into anything. (widespread inflation, predicted collapse of multiple pension systems) Catch 22, you have to take some risk and live with it, but the wise thing is to minimize it. (I guess thank you cpt. Obvious)
A broken clock is still a broken clock, and it being 'right' twice a day depends entirely on accident/happenstance. Actually a good analogy for investors, now that I think of it.
Interesting that you mention ProtoLabs. As a mechanical engineer, I've done business with them for over a decade and been happy with their quick-turn machined parts and injection molded parts (they're expensive but FAST). I had no idea what a roller coaster their stock price had experienced over the last 5 years.
The issue I see with some of the penny stocks in ARK is they are 10 year investments starting from scratch, that do great when given meme stock treatment but are very vulnerable to macroeconomic trends. The key to entering them is to completely ignore meme like news events, but shop for the ones that are most under-rated at a given moment.
Cathy Woods was an unknown, but successful money manager before she started her own firm. Ark was setup to invest in future technology type businesses........and young investors who are basically inexperienced was the target customer........I think Ms. Woods moved away from fundamentals.....used emotion......."this is the future tech".......we invest early in these firms....the returns will be high down the road. Sort of like a ETF for venture capital type firms that have high failure rates...75% to 90%...invest in future tech...but......only a few will make money. I also think when she invested 10 or 15% in a firm...she knew she could get board seats....become an activist investor........another mistake. Patrick did a good of identifyng the mistakes made here. Ms. Woods is walkng away with a lot of money while investors lose money......
@@user-pl5zx4sp5c I think Ms. Woods got too big, made fundamental mistakes in investing, has young inexperienced staff around her. She has the young crowd surrounding her because she is marketing to the same age group....but many of these types of guru investors know in the end index funds with low costs are suitable for most passive investors. The future tech businesses are very interesting.......can be enticing.....but any smart investor would allocate a small percentage of funds to invest in them. Again, Ms. Woods is walking away with lots of money.....this is the key....she's getting wealthy on other peoples money....win or loss....she always makes money
There is always someone on a lucky streak who is then hailed by the media (and now youtubers and tiktokers) as a genius. Michael Burry, Ray Dalio, Bill Ackman, Cathy Wood, Chamath Palihapitiya. Just ignore it, there will always be someone making big news with their latest calls, that's just how randomness works.
Easy way but less rewarding - jumping from one stock to another regularly based on news flow. Tough job but highly rewarding - stay invested with well-analysed ideas till those become significantly overvalued. I practice “tough job” and had been rewarded significantly.
@@carter3294 The best way to cope with this market is to work with a financial specialist; most individuals have never encountered a bear market, which is why their emotions are all over the place. I've been led by "Casey Allen Gray," who has helped me see that profits can be produced in bull and bear markets alike, and I've been doing well with a 15% monthly ROI.
I'm not an investor, yet I don't miss one single episode of Patrick. I really think his analyses have often much deeper implications, than simply being a good investor.
@Javeec but are they disruptive? And can they synergise with the new hybridised work/life flow? /s just in case anyone thinks I'm that WeWork guy or something.
I'm glad you brought up how most investors are groupies regardless of funds. Even SPY has similar investor behavior, buying at peak good times and selling at peak bad times. Very informative and funny at the same time.
Ark’s technical team seems to have a gap in their ability to assess new technologies and their value propositions. I’m familiar with some of the companies and many of the technologies she’s invested in and her comments seem not optimistic but divorced from a realistic assessment of value. Just because a technological innovation is significant doesn’t mean it has real business potential.
It doesn't matter to them. After they'll invest, Cathie will do her rounds of public promotion of those companies and products to increase stock value like Tesla 4k stock, bitcoin 200k value etc., sell it near the peak and move to another company/stocks...
Patrick for some reason I didn’t watch your videos for like a year after learning about you, and that was a mistake. You are the funniest financial guy on TH-cam 😂
In other words, the pricing of a small-cap fund is especially reflexive. What seems like 'gains' is actually just a measure of how much others have invested. They are unrealisable gains because the liquidity is so low.
As always, great video not just for beginners/new investors trying to enter in the market but also for those who already have decent exposure to funds. If I may, respectfully, one of the thing I would suggest you to include in a a future video is that when we buy a fund, we do not buy the past performance of the fund but rather the investment style of the fund manager. Any fund can have a streak of stellar performance for a few years. But that can also be backed by the market conditions prevailing at that time and might have little to do with the integrity and investment strategy of a fund manager. This is something that specially the retail investors should consider. This might not be applicable for billionaires or fancy electric car manufacturing company owners who might recover all their short term loss by riding the wave of short term speculation.
Yes I'm one of those idiots that got into ARKK et al early in 2021 and just sold it all last week. It was an important lesson I had to learn to not chase the stock while it's rising. Why did I sell? It was affecting my mental health seeing the loss from it in my portfolio and I needed to push the reset button and clear my head.
Just dca into a diversified low cost index fund. You'll beat the vast majority of investors and never have to worry about some clown lighting your money on fire
Excellent reminder to investors to invest profitable by using counter-intuitive, unemotional timing: buy low, sell high. The time to buy is truly when there is blood in the streets.
And what if the “blood in the streets” becomes even more bloody? And instead of a dip, you’ve bought a falling knife? Buying the bottom is too risky, since it may not be the bottom. It’s much better to buy a company after its rebounded at least 20% off the bottom.
@@jeffw8218 If you're not sure if it's the bottom, it probably isn't. Buying a stock for pennies that has previously traded for hundreds of dollars is a good example. There are only two things that can happen: a rebound where you'll get a massive return, or the company fails and you lose everything. You wouldn't put all your money into a stock like that for obvious reasons.
I have also never understood the tendency people have to jump on a boat that has already sailed often seemingly expecting infinite exponential growth. It's kinda like Education. More people went to College in the 70's amd 80's and many who "got into Computers" as the internet tool off, made lots of money, SO the general consensus was that everyone should do that. Then all of a sudden there was an abundance of qualified people and more automation scaling down operations. Now the jobs people wanted to avoid because of their relatively lower average salaries like Plumbing, Electrical, Mechanics, etc are making MUCH more than those with a 4+ year degree in the field they are working in...if they are working in it...or at all and a loads of debt. Same with traffic too! One lane starts moving so everyone gets over, backing things up even more and ensuring that lane will stop moving. It's definitely an "natrual/instinctual" reaction it seems ugh.
Yeah, nice one Patrick. I read a book recently talks about building systems as opposed to setting goals as a more meaningful way of achieving long term success. As you are aware, market participants often cannot distinguish the difference between investing and gambling, and usually only realize the gambit after big draw downs. Isn't it fascinating..
I usually have a general rule that if youtubers are getting hold of it, it's probably time to look for a short rather than actually buying whatever they're talking about
One way to succeed in stocks is to heavily promote the things you already bought and then tell everyone to sell after you do. You can look like a genius until you don’t.
Insightful Video, It seems like am never able to identify trends, options always go against me, I aim to invest in both stocks and real estate and I've set aside $380K to put towards stocks and make enough to invest in real estate after a year, I would really appreciate quality tips on how to reach my goal quicker.
I usually would not take advises online but i curiously looked this Jessica up and scheduled a phone call with her. she seems proficient and well-grounded.
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $560,000 in 4 months from $100k. Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.
@@Americanpatriot723 Interesting. I've a lump sum doing absolutely nothing at all in my bank account, i wanna gets something started with it. You seem to be doing excellent for yourself, how do you achieve this?
My favorite clip of this video is @ 9:47, where Patrick describes Protolabs as "a 3D printing company"..........while showing a factory filled to the brim with Haas CNC mills. Come for the financial information, stay for the humor.
Soon after having taken notice fo Cathie Wood for the first time I heard her saying that they would stop holding a certain stock (must have been TSLA) when it's yearly increase in value would drop below 15% it was already clear to me that I never ever would invest a simgle cent in any ARK ETF. I mean, 15% return per year isn't too shabby after all, so why get rid of such a stock if the company behind it does well? Of course such a strategy could be driven by just by sheer greed, but in Cathy Wood's case the presentation of that strategy only was done to trigger potential ETF customer's greed, in other words it was intentionally misleading.
It’s kind of incredible what a natural, common mistake it is to chase returns and pull out on dips, considering how it inverts the most basic concept of buying low and selling high.
It's a conflict between human nature and logic. When we see a bunch of people crowding around something we want to see what it is, and when we burn our hand we drop the burning thing. Instinct vs. reason.
I think neither oversimplified strategy is guaranteed to work. You could have sold AMZN when it was rising and bought NIO when its price seemed low, you'd regret in each case.
Héhé. one of my homeruns in 2022 have been a short position on ARRK. When it got to go sideway, since the month of May expiry i have covered the position and have been selling strangles on the ETF. It's a nice underlying to do that as a the ETF price is now relatively low and its IV have been through the roof. I would argue that this strategy (the short ARKK ETF) have been made the same way people that got long ARKK in late 2020. It was sell low, buy lower. It's momentum based. Timing is indeed very hard. You have to set clear predertermined boundaries to get out if you're wrong.
I think this is a really smart way to break down mutual funds and how people invest in them Patrick. It actually gives me a interesting correlation with the core CPI calculations. Bear with me this is what I mean often we think about core and headline inflation but we don't actually break down inflation by how it hits our wallet. The same way we don't break down actual losses on a fund with a higher amount of assets under management than when it actually performed well. So in other words if 80% of our costs are in headline inflation and only 20% is in core inflation then that would naturally mean each individual person's inflation rate is much different then anything we look at when we discuss the CPI. Now obviously the CPI is extremely manipulated and we know that but I just never really thought about expressing it that way before you broke down this aspect. I actually started in the mutual fund industry in Boston which is the mutual fund capital of the world. At least it used to be and I always try to explain this to people and I don't think my explanation is always landed so well. So I really appreciate the topic and it gives me a lot of food for thought as always with your videos thanks Patrick
Thanks heaps Patrick, I only wish you would post more often, I am one of the unwashed masses who had never invested before the pandemic. Being completely naive I followed all the memes, fortunately for me I acted pretty quickly on most of them so I made money on GME, AMC and TSLA. with Ark I at first made a great profit but then had to cash out for break even on the way down. I do understand that my gains were only because of pure luck and I might just as easily have lost it all. I have you to thank for my realistic expectations going forward. Thanks again and keep it up
This video outlines the #1 reason I do no invest into these groups. As a retailer trader, I face huge hurdles that her behavior creates, but at least when I'm green on a trade, I keep most of it.
yeah your absolutely right, Im so stupid to be sucked in after my FOMO so called friend greased me to invest and buy ARK etf. Lesson learned. Yeah disruptive innovation, it’s actually it disrupted my investment.
12:00 yeah that is optimism at it's finest. We're no closer to AGI now, than we were when Steve Jobs was busy carving a wood case for his Apple-I computer.
Thanks Patrick, another insightful and helpful video. As you mention timing entry/exit points is definitely hard. We sold our ETF's last year and deciding when to jump back in is very difficult. S&P seems to have had a stellar rally recently, seemingly defying all logic. We think we'll sit tight for a bit longer yet though before re-entering, and your earlier video about inflation investing seems to support that view.
Kathy is definition of “Artificial Intelligence” I have no idea how she is still allowed to manage peoples money. Oh yea, when she sells collects a commission and when she buys, she also collects a commission and don’t forget when she mismanages her clients money she also collects a commission. What a deal.
Studies indicated about 80-85% of a typical alternative investment fund's economics would go to the lead founders, leaving 15-20% was left to compensate the rest of the firm (management, investment, and operations teams). Those compensation studies were published both by academics and HR consultants and were from a decade ago; I don't see why those economics would have changed.
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Is the suit a joke?
"Disruptive" and "game changer" are terms meaning WE'RE AS FAKE AS THERANOS.... I saw something, probably a Mike Winnet video (busts "conterprenuers") that was explaining all the terms cons use...
Jacket with no tie.. are you hipster trolling hipsters? Is this a credit or debit spread? I'm confused!
Patrick do you think that the people that are saying we have seen the bottom are correct? And we have seen the worst?
Hello Patrick love your content .. can you do a video on BRICS and what a BRICS backed currency would mean for the west and what it would mean for the BRICS nations would it benefit a nation like South Africa ? It also seems there are many other nations looking to join BRICS such as Mexico argentina Uruguay UAE.. thanks
"we're going to try to be nice." Dude is off to a rock solid start!
Yeah, that's a 70° take off :)
When he showed her TH-cam comments and said "Oh Katie" I friggin died lmaoooo
another little known (by the public) problem with funds, money managers start funds with a small amount of money under management. They "nurture" this fund to create truly outstanding returns. Small funds can be nimble. (if they fail, the fund is quietly canceled.) With market-beating performance numbers, the fund is "marketed" to the general market of mutual fund investors. If this is successful, millions perhaps billions flow in. Money undermanagement is the goal. But the bigger the fund becomes, the less nimble it becomes. And the larger, less nimble fund begins to underperform. But the goal was to rapidly increase the money under management. If the goal was beating broad market indexes, they'd keep the fund small. But small funds are not very profitable... When looking at a "hot" fund, pay close attention to how large the fund was when it was creating market-beating returns. And then compare that number to the current size of the fund. A fund that's grown rapidly in size will likely fail to match its previous ROI.
Maybe when they get too big, they should take the Berkshire approach & buy the whole company or a majority stake rather than investing incrementally.
I was invested in ARKK, but I dumped it last year and put the money into an S&P500 index fund when she started making inexplicable moves like YOLOing into Roku. I do not regret it.
LMAO not roku 😆 good tv tho
I've been revisiting old videos and can't help but comment that this is probably my favorite suit of yours in the entire wardrobe. Very suave, Patrick!
Curiously, just thinking along similar lines...😂
Cathie Wood came to my notice last year when she remarked that a $10 drop in the iron ore price from $150 to $140 per ton was a disaster for Australian iron ore miners. She didn’t seem to be aware that their production price is around $20.
after accounting for fixed overheads?
production price has nothing to do with it, it just slave wages that noone cares about, farmers sell tomatoes for 5 cents a kilo, but shop sells them at 2$, they need massive margins cause things go bad and opportunity cost of using logistics for something else more profitable than some low margin stuff
@@MostIntelligentMan wtf has that got to do with comment.
@@tyronbasista2729 yeah
@NEUTRALposition
Ah yes. Iron ore and tomatoes, very similar commodities
At least Cathie has provided good entertainment in the financial market.
Jim Cramer is a LOT more entertaining. Ha ha.
🤣
@@hppeng no way, it's SBF.
@@hppeng jim Cramer is a lame boomer
Cathie Wood is surely the serpent from the Garden of Eden.
Like the serpent, she reverses everything. We say that stocks are overpriced, she says they are underpriced. We say inflation is incoming, she says that deflation is incoming. Etc.
And she tempts people to buy stuff that they totally believe is wrong, likely utterly terrible growth stocks that hang by a thread that will most definitely break at some point soon.
And if she's the serpent it explains why she has a beguiling voice and why she hangs around Christians and the Christian Church.
🙂
Established companies may also be "disruptive" without the high-risk outcomes albeit with the smaller returns.
I feel enough attention isn't given to Patrick's deadpan humour. It really stands out in videos focusing on these kinds of subjects. It also helps make the videos more fun, memorable and approachable. As always, hope you keep up the great work Patrick! Thank you for putting out content like this!
Are you kidding? The comment section for all his videos talk about his deadpan humour.
Agreed: it's only noted in every single video he posts. We can do better. (Is there a way to *preemptively* laud it?)
please provide citations of this alleged humour.
This is my favourite financial news/comedy channel
@@deforged you haven't watched much...
Part of the problem is the cheering financial reporters and outlets. No body ever called her nonsense. There is no consequences for spreading nonsense. The fundamental flaw with an investing mindset is that investing appears to be replacing the idea of working for a living.
this is why it makes sense not to watch too much news or any at all, you literally become retarded, too filled with fear to even act on your obvious instincts. it is a global echochamber that enables stories alike to the kings clothings to play out over and over
Warren Buffet has made much the same points many years ago but I enjoy the additional information & analysis (and of course the humour) delivered by Mr Boyle.
Every one of his videos is an education.
Both INTJs
You killed it Patrick. I'm watching from a ghetto in Chicago and that was better than the action that happens on a Friday night in the inner city jungle. I always learn so much. Thank you.
The lesson to take away from Archegos and ARKK is to stay far away from religiously named funds and creators who think they've been ordained by God to make money in stocks. Successful trading requires more than paying a tithe.
the separation of church and money
I made a good couple of years gains just buying the Ark shares after KW bought them, just to sell 3-5 days later.
This is mainly due to investors buying and selling shares in the daily Ark fund email updates.
At one point I was fairly certain the reason for the regular updates was to drive the price up due to people copying the funds transactions, especially the buy signals.
The daily updates were very much a free signals subscription.
Pump & dump
exactly the market is all news driven
I made over $120k doing this in 2020, mainly on TTD, Zoom, and a 3D printing company.
I should’ve switched to shorting though, since I’ve lost a lot this year and have switched to mainly index funds and a few energy stocks.
My strategy for 2023 is to DCA tech companies if I see any rebounding.
Can we unironically just get a video of your outfits and fashion choices and how to dress? You suave in an industry known for sharp dressers
HE'S IRISH. Trust me, being half Irish, you don't want to follow the crowd. Or look English.
>me during the commercial
"he just wears blue suits?"
>the commercial ends
"Wat"
Great thinking, he could make some big $$$ on affiliate links. How about a try on haul Patrick? 🤔
Patrick exhales "class" - particularly when he irons both sides of his shirt.
I wonder if he brings this relaxed but thoughtful energy everywhere in life or just TH-cam?
Cathie Wood, the master of buying high and selling low.
🤣 😅
She made a lot of money, everybody else though... Not her problem
The master of manipulating idiots to pay her billions from her Simps of Wall Street.
So you have done better than her with your money?
@@jannes9945 It's easy for HER to make money using other people's money with her bullshit lies but yes, everyone has beaten her because she lost to the broad market S&P when including dividends without having to worry about long term performance. That's also not even comparing her against QQQ which should be used when comparing ARK since she invests in basically all tech companies. QQQ absolutely destroyed her fund by a massive margin and is a significantly better investment than ARK. Her fund is terrible by every metric and you're lighting your money on fire by getting anywhere near this woman.
Patrick knew he was about to Roast Cathies ass so he at least got dressed up for it. Respect
The finance media is partially to blame for this phenomenon. ARKs funds were presented as a winner on most if not all of the large financial publications at the time. Wood was interviewed everywhere and titled an investing genius. If one is a beginning investor (read: young retail folks) such clout might seem enticing. It requires someone with more experience and understanding of the finance market to be able to critically assess claims made by finance media and industry "experts". Same argument goes for crypto as all the way before the plunge of 2022 all the major finance publications were touting crypto as the future and I saw several articles where even women and minorities were tried to be tricked into crypto investing. This from respectable news publications.
thankfully there is now redit and other sources where we retailers constantly advise others to not listen to what corporate media is selling. a name comes to mind... Jim Cramer or something
Media is mostly paid to promote certain products and services
Yea listening to guys hyping stocks ,funds. etc always works out.
When everyone is talking about it, maybe is cause they are selling. Like a car dealer
She's a pump and dump artist.
I invested in ARKK and ARKG often in 2021. Fortunately I had well placed close stops so I hardly lost anything. I learned that if well placed stops get hit frequently, it's a downtrend - whatever anyone says. The big danger IMO is believing it's an uptrend or bottom when it isn't and taking those stops away.
Spot on . Tight stops = if the scenario is perfect it's cool . If it's invaildated by anything ( not really important what ) than we should get out and get in at a better point .
It's much better time to invest in tech now, blood on the streets, banks, inflation fears more blood and dying.
Even a broken clock is right twice a day. A crap investor will, from time to time, find their stock picks to be flavour of the month (or quarter). The clued up person does not confuse luck with investing skill Patrick you also made a very good point about low volume stocks - michael burry undoubtedly recognised that the value of Arks (and woodfords) portfolio was materially based upon the price the fund itself paid for illiquid small company's stocks - which artificially inflated their value vis a vis the real market price.
Woodfords prediction back in 1990s that the Internet will forever change business was not wrong. But picking stocks is harder - because one has to invest billions in high market cap companies like Exxon or AOL I suppose. Google and AMZN had paltry market cap. Similarly Cathy faces the same problem. She may be right on AI (I am a guy with deep finance experience who also has 18 years experience with machine learning). But to invest in AI is impossible as the total market cap in real AI companies is no more than $200M. Very little pure play AI companies out there. Almost none are publicly traded. Cathy may very well be right, but SEC laws prevent her from making pre-IPO investments.
Mathematicians laugh at the notion of a “good investor”. Trying to predict the actions of 8 billion people. Lol.
@@Annou7la Actually that is the conclusion I kinda arrived at this point investigating investor efficiency lately. Every single piece of evidence seems to point to the direction of index funds with realatively low but - mostly very predictable and stable - returns. The incredible uncerteanty in the world right now, makes even these kind of secure investments somewhat of a risky proposition, the only difference comes out when you consider how risky also, to not invest into anything. (widespread inflation, predicted collapse of multiple pension systems) Catch 22, you have to take some risk and live with it, but the wise thing is to minimize it. (I guess thank you cpt. Obvious)
"Even a broken clock is right twice a day."
One of my favorite expressions.
A broken clock is still a broken clock, and it being 'right' twice a day depends entirely on accident/happenstance. Actually a good analogy for investors, now that I think of it.
Interesting that you mention ProtoLabs. As a mechanical engineer, I've done business with them for over a decade and been happy with their quick-turn machined parts and injection molded parts (they're expensive but FAST). I had no idea what a roller coaster their stock price had experienced over the last 5 years.
This channel is a recent find and quickly becoming one of my favorite finance channels! thank you!!
The first video from which I have finally grasped the concept of investing in ETFs and stocks. Simple and clear explanation. Thank you.
You make finance so entertaining to hear. And that coming from me and I work as a “corporate finance director”
I come to this channel for the info but stay for the (not so) subtle digs at the influencer/investors and meme stock gurus
Bought in late 2020, sold in mid 2021 when I saw the writing on the wall and left with a minor profit. Feel very thankful now.
I did the same, but held a little too long, so I lost a bit... Could have been worse.
Very pleased and thankful that the internet allows us to connect with people such as yourself, Patrick. Best wishes and thank you for educating us!
The issue I see with some of the penny stocks in ARK is they are 10 year investments starting from scratch, that do great when given meme stock treatment but are very vulnerable to macroeconomic trends. The key to entering them is to completely ignore meme like news events, but shop for the ones that are most under-rated at a given moment.
Ark is just designed to be negatively correlated so that it can help investors build a diversified portfolio: negatively correlated with what? Yes.
It's like buying a clunker to offset the fact you just bought a new reliable Toyota.
Late but the answer is profit
The folded pocket square makes an appearance! The man is a master of economics, guitar AND the art of dapper finery!
Cathy Woods was an unknown, but successful money manager before she started her own firm. Ark was setup to invest in future technology type businesses........and young investors who are basically inexperienced was the target customer........I think Ms. Woods moved away from fundamentals.....used emotion......."this is the future tech".......we invest early in these firms....the returns will be high down the road. Sort of like a ETF for venture capital type firms that have high failure rates...75% to 90%...invest in future tech...but......only a few will make money. I also think when she invested 10 or 15% in a firm...she knew she could get board seats....become an activist investor........another mistake. Patrick did a good of identifyng the mistakes made here. Ms. Woods is walkng away with a lot of money while investors lose money......
@@user-pl5zx4sp5c I think Ms. Woods got too big, made fundamental mistakes in investing, has young inexperienced staff around her. She has the young crowd surrounding her because she is marketing to the same age group....but many of these types of guru investors know in the end index funds with low costs are suitable for most passive investors. The future tech businesses are very interesting.......can be enticing.....but any smart investor would allocate a small percentage of funds to invest in them. Again, Ms. Woods is walking away with lots of money.....this is the key....she's getting wealthy on other peoples money....win or loss....she always makes money
There is always someone on a lucky streak who is then hailed by the media (and now youtubers and tiktokers) as a genius. Michael Burry, Ray Dalio, Bill Ackman, Cathy Wood, Chamath Palihapitiya. Just ignore it, there will always be someone making big news with their latest calls, that's just how randomness works.
Easy way but less rewarding - jumping from one stock to another regularly based on news flow. Tough job but highly rewarding - stay invested with well-analysed ideas till those become significantly overvalued. I practice “tough job” and had been rewarded significantly.
I buy n sell the same stock with great success since the last 22 yrs as I never had the comfort of only buying and holding as I had limited money.
@@carter3294 The best way to cope with this market is to work with a financial specialist; most individuals have never encountered a bear market, which is why their emotions are all over the place. I've been led by "Casey Allen Gray," who has helped me see that profits can be produced in bull and bear markets alike, and I've been doing well with a 15% monthly ROI.
@Jeremy Walker You can just look her up to know more about her work.
Casey Allen Gray lit my puppy on fire, do not recommend
@@viviangall1786 you had great success but you still ended up with limited money?
Thanks so much Patrick! I love your commentary and perspective. Always an education.
Patrick, when are we starting our Stonk Fund? I already have the memes and chicken tendies ready for those client lunches
Only if it includes ape art for a balanced portfolio.
This is the kind of content that should be shown in schools!! Thanks Patrick.
Looove the jacket and the pocket square Mr. Boyle. Thanks as always. 🙌🏾
I'm not an investor, yet I don't miss one single episode of Patrick. I really think his analyses have often much deeper implications, than simply being a good investor.
You need practice. You have to feel a crash and this is only possible with real money. Start with a diversified ETF.
Just staying informed as well. I watch Patrick for his content and delivery. This is a good quality channel with a bit of Irish pazzazz.
So you like a voyeur ? do you go to the financial district and masterbate ? 🤣
The Stacie and John bit at 12:21 is hilarious!
John's straight savage
11:48 "What can I say. She's an optimist." Was my favourite bit. That dead pan delivery was on point.
I regret watching this, specifically: I regret that I could only 'like' this excellent post only once - it seems like it deserves more
She also predicted that ride sharing alone would add something like a third to the global gdp by 2030. I guess you could call her an optimist.
In Switzerland we have something called busses and trains. She probably never heard of them
I’d rather invest in nuclear fusion than in Cathie and I see nuclear fusion as a very long shot that might hit its target long after I died.
@Javeec but are they disruptive? And can they synergise with the new hybridised work/life flow?
/s just in case anyone thinks I'm that WeWork guy or something.
I'm glad you brought up how most investors are groupies regardless of funds. Even SPY has similar investor behavior, buying at peak good times and selling at peak bad times. Very informative and funny at the same time.
I like to call the Tesla acolytes fanboys, but I think I’m gonna switch to groupies…. I like it!
Ark’s technical team seems to have a gap in their ability to assess new technologies and their value propositions. I’m familiar with some of the companies and many of the technologies she’s invested in and her comments seem not optimistic but divorced from a realistic assessment of value. Just because a technological innovation is significant doesn’t mean it has real business potential.
It doesn't matter to them. After they'll invest, Cathie will do her rounds of public promotion of those companies and products to increase stock value like Tesla 4k stock, bitcoin 200k value etc., sell it near the peak and move to another company/stocks...
Patrick for some reason I didn’t watch your videos for like a year after learning about you, and that was a mistake. You are the funniest financial guy on TH-cam 😂
I thought the same about you
This is an excellent video. I was worried it wouldn’t cover the insane (and inane) Cathy predictions but I was not disappointed.
In other words, the pricing of a small-cap fund is especially reflexive. What seems like 'gains' is actually just a measure of how much others have invested. They are unrealisable gains because the liquidity is so low.
You have some god tier fashion sense sir!! 🙏🏼
As always, great video not just for beginners/new investors trying to enter in the market but also for those who already have decent exposure to funds. If I may, respectfully, one of the thing I would suggest you to include in a a future video is that when we buy a fund, we do not buy the past performance of the fund but rather the investment style of the fund manager. Any fund can have a streak of stellar performance for a few years. But that can also be backed by the market conditions prevailing at that time and might have little to do with the integrity and investment strategy of a fund manager. This is something that specially the retail investors should consider. This might not be applicable for billionaires or fancy electric car manufacturing company owners who might recover all their short term loss by riding the wave of short term speculation.
Patrick,many thanks for your clarity
I can only hope and strive to make quality finance content like this, Patrick is fantastic!
Nice, just finished making my Saturday morning coffee and a new PB video is at the top of my feed.
Life is good 😎👍
ah yes, timezones
Yes I'm one of those idiots that got into ARKK et al early in 2021 and just sold it all last week. It was an important lesson I had to learn to not chase the stock while it's rising.
Why did I sell? It was affecting my mental health seeing the loss from it in my portfolio and I needed to push the reset button and clear my head.
Just dca into a diversified low cost index fund. You'll beat the vast majority of investors and never have to worry about some clown lighting your money on fire
@@jasonmaguire7552 I already do that with VTI and VOO.
ARK was a whim I dabbled in with borrowed money. Lesson learnt.
Thanks Patrick, for reminding us of the "heads I win, tails you lose" business model of Cathie Wood and others.
Excellent reminder to investors to invest profitable by using counter-intuitive, unemotional timing: buy low, sell high. The time to buy is truly when there is blood in the streets.
I like buying to open! That's the shit!
And what if the “blood in the streets” becomes even more bloody? And instead of a dip, you’ve bought a falling knife?
Buying the bottom is too risky, since it may not be the bottom. It’s much better to buy a company after its rebounded at least 20% off the bottom.
@@jeffw8218 If you're not sure if it's the bottom, it probably isn't. Buying a stock for pennies that has previously traded for hundreds of dollars is a good example. There are only two things that can happen: a rebound where you'll get a massive return, or the company fails and you lose everything. You wouldn't put all your money into a stock like that for obvious reasons.
@@joeschmoe6908 Yup, that’s exactly what I said.
@@jeffw8218At that point you may have bigger things to worry about than your investment portfolio…
I have also never understood the tendency people have to jump on a boat that has already sailed often seemingly expecting infinite exponential growth. It's kinda like Education. More people went to College in the 70's amd 80's and many who "got into Computers" as the internet tool off, made lots of money, SO the general consensus was that everyone should do that. Then all of a sudden there was an abundance of qualified people and more automation scaling down operations. Now the jobs people wanted to avoid because of their relatively lower average salaries like Plumbing, Electrical, Mechanics, etc are making MUCH more than those with a 4+ year degree in the field they are working in...if they are working in it...or at all and a loads of debt. Same with traffic too! One lane starts moving so everyone gets over, backing things up even more and ensuring that lane will stop moving. It's definitely an "natrual/instinctual" reaction it seems ugh.
Yup, timing and recognition of it are key.
Yeah, nice one Patrick. I read a book recently talks about building systems as opposed to setting goals as a more meaningful way of achieving long term success. As you are aware, market participants often cannot distinguish the difference between investing and gambling, and usually only realize the gambit after big draw downs. Isn't it fascinating..
What’s the book?
@@seedorf1010 sounds like Atomic Habits to me. Would recommend
How to Fail at Almost Everything and Still Win Big, Scott Adams
I usually have a general rule that if youtubers are getting hold of it, it's probably time to look for a short rather than actually buying whatever they're talking about
Thank you, always great info with well aimed humour. Always an education.
Gosh. This was so interesting and helpful…thank you so much for this. So good. You’re awesome Patrick!!!!
You need to start putting a comedy tag on your videos… the dry humor is perfect
One way to succeed in stocks is to heavily promote the things you already bought and then tell everyone to sell after you do. You can look like a genius until you don’t.
So basically pump and dump?
Any video which includes "Guy with 2 phones" gets an extra star.
Insightful Video, It seems like am never able to identify trends, options always go against me, I aim to invest in both stocks and real estate and I've set aside $380K to put towards stocks and make enough to invest in real estate after a year, I would really appreciate quality tips on how to reach my goal quicker.
I usually would not take advises online but i curiously looked this Jessica up and scheduled a phone call with her. she seems proficient and well-grounded.
Hi Patrick, good video. I just want to point out that your book cover is almost the same as Sven Carlin's book cover. Which one coppied other?
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $560,000 in 4 months from $100k. Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.
Investing in stocks is a good idea, a good trading system would puts you through many days of success.
@@Americanpatriot723 Interesting. I've a lump sum doing absolutely nothing at all in my bank account, i wanna gets something started with it. You seem to be doing excellent for yourself, how do you achieve this?
@@Americanpatriot723
My favorite clip of this video is @ 9:47, where Patrick describes Protolabs as "a 3D printing company"..........while showing a factory filled to the brim with Haas CNC mills. Come for the financial information, stay for the humor.
Soon after having taken notice fo Cathie Wood for the first time I heard her saying that they would stop holding a certain stock (must have been TSLA) when it's yearly increase in value would drop below 15% it was already clear to me that I never ever would invest a simgle cent in any ARK ETF. I mean, 15% return per year isn't too shabby after all, so why get rid of such a stock if the company behind it does well? Of course such a strategy could be driven by just by sheer greed, but in Cathy Wood's case the presentation of that strategy only was done to trigger potential ETF customer's greed, in other words it was intentionally misleading.
Do you have a reading list?
It’s kind of incredible what a natural, common mistake it is to chase returns and pull out on dips, considering how it inverts the most basic concept of buying low and selling high.
It's a conflict between human nature and logic. When we see a bunch of people crowding around something we want to see what it is, and when we burn our hand we drop the burning thing. Instinct vs. reason.
I think neither oversimplified strategy is guaranteed to work. You could have sold AMZN when it was rising and bought NIO when its price seemed low, you'd regret in each case.
lmao. my thoughts exactly. its called knee jerqOff reactions. And irrational exuberance service is a multiplier
I think Zillow has the patent on the phrase "Buy high, Sell low"
@@richardochodzki3961 “Seemed low” is immediately way too arbitrary, is the thing.
Héhé. one of my homeruns in 2022 have been a short position on ARRK. When it got to go sideway, since the month of May expiry i have covered the position and have been selling strangles on the ETF. It's a nice underlying to do that as a the ETF price is now relatively low and its IV have been through the roof. I would argue that this strategy (the short ARKK ETF) have been made the same way people that got long ARKK in late 2020. It was sell low, buy lower. It's momentum based. Timing is indeed very hard. You have to set clear predertermined boundaries to get out if you're wrong.
Awesome video ! I’ve never liked the push from Cathie to sell her ETs… particularly her manipulation of the retail investors on social media !
I seem to have a knack for identifying posers. It took me like two seconds to see through her shtick.
I think this is a really smart way to break down mutual funds and how people invest in them Patrick. It actually gives me a interesting correlation with the core CPI calculations. Bear with me this is what I mean often we think about core and headline inflation but we don't actually break down inflation by how it hits our wallet. The same way we don't break down actual losses on a fund with a higher amount of assets under management than when it actually performed well. So in other words if 80% of our costs are in headline inflation and only 20% is in core inflation then that would naturally mean each individual person's inflation rate is much different then anything we look at when we discuss the CPI. Now obviously the CPI is extremely manipulated and we know that but I just never really thought about expressing it that way before you broke down this aspect. I actually started in the mutual fund industry in Boston which is the mutual fund capital of the world. At least it used to be and I always try to explain this to people and I don't think my explanation is always landed so well. So I really appreciate the topic and it gives me a lot of food for thought as always with your videos thanks Patrick
Thanks heaps Patrick, I only wish you would post more often, I am one of the unwashed masses who had never invested before the pandemic. Being completely naive I followed all the memes, fortunately for me I acted pretty quickly on most of them so I made money on GME, AMC and TSLA. with Ark I at first made a great profit but then had to cash out for break even on the way down.
I do understand that my gains were only because of pure luck and I might just as easily have lost it all. I have you to thank for my realistic expectations going forward. Thanks again and keep it up
8:29, Interestingly, this is also true for the morning star rating system. 1 Stars outperform 5 Stars in future years. Return to the mean is brutal.
how come I just found out about you. Your analysis is fire!
There is a saying in the car business, "If a deal is too good to be true, it usually is.".....
This video outlines the #1 reason I do no invest into these groups. As a retailer trader, I face huge hurdles that her behavior creates, but at least when I'm green on a trade, I keep most of it.
Patrick getting wild with the striped blazer and red pocket square!
i love your videos so much and the way you detail every story so thoroughly
Patrick as always in the top intellectual form. If there was no Patrick Boyle we would have to build one. 😉
Your presentation is great in so many ways. Thank you.
"but we are going to try to be nice"...
Ooh Patrick
yeah your absolutely right, Im so stupid to be sucked in after my FOMO so called friend greased me to invest and buy ARK etf. Lesson learned. Yeah disruptive innovation, it’s actually it disrupted my investment.
Great message. Buy the future not the past
Ark typifies the mantra, "Only invest what you can afford to lose"
Or is it only invest only when you afford to lose?
Great video Patrick, you are a guru. I respect your knowledge, keep up the great work !
12:00 yeah that is optimism at it's finest. We're no closer to AGI now, than we were when Steve Jobs was busy carving a wood case for his Apple-I computer.
Fantastic video thanks Patrick, I’ve learnt so much watching your content.
Thanks Patrick, another insightful and helpful video. As you mention timing entry/exit points is definitely hard. We sold our ETF's last year and deciding when to jump back in is very difficult. S&P seems to have had a stellar rally recently, seemingly defying all logic. We think we'll sit tight for a bit longer yet though before re-entering, and your earlier video about inflation investing seems to support that view.
I remember the Net Net fund, oh my god, what a plan.
Kathy is definition of “Artificial Intelligence”
I have no idea how she is still allowed to manage peoples money.
Oh yea, when she sells collects a commission and when she buys, she also collects a commission and don’t forget when she mismanages her clients money she also collects a commission.
What a deal.
you mean, fairies and demons and angels DON'T run the world???
@@tiamat_023 Why are you ruining my dreams of living in a 🧚♀️ land? 😂
Lmfao
Don't forget that lovely annual admin fee too.
Well that’s one way to perceive AI.
Not typical, but it’s semantically adequate I suppose.
Hugely important. Well explained. Thanks Patrick.
GREAT VIDEO BETTER BLAZER
Studies indicated about 80-85% of a typical alternative investment fund's economics would go to the lead founders, leaving 15-20% was left to compensate the rest of the firm (management, investment, and operations teams). Those compensation studies were published both by academics and HR consultants and were from a decade ago; I don't see why those economics would have changed.
Sharp as usual Patrick!
Thanks Pat. Have a great Weekend
That jacket is sharp!
Thank you for these entertainment videos and channel
Cathie needs to hire someone with some technical analysis training. She’s managed to buy a number of positions at the top and sell at the bottom
Great video...whats your take on softbank
I remember her on tv a while back saying how technology will prevent inflation rising!