Recently, the ARK fund, which mainly invests in "the field of scientific and technological innovation", has become popular!

Since its debut in the second half of 2014, the fund's largest product, ARKK (innovation ETF), has risen more than 560%, not only the king of the technology index, but also the S & P 500.

Judging from the performance of the past six years, ARK's products have almost outperformed the market index (S & P 500ETF and PowerShares QQQ Trust, Series 1) for most of the time. Among them, the performance in 2020 is the brightest.

It is reported that ARKK's average annualized return over the past five years is close to 40%, which is twice Buffett's average. As the CEO and fund manager behind ARK Invest, Catherine Wood is also known as "female version of Buffett", "Wall Street Goddess of stocks" and so on.

It is worth noting that, unlike other investment institutions, ARK funds share the operations of its funds with investors every day.

The class representative has sent out the "answer", but don't you copy it?

However, there are also cattle friends said.

Aim at new energy, Chong Cang Tesla, Inc.

In the Top Ten ideas for 2020 (Big Ideas 2020) published by the ARK Foundation, it believes that the popularity of electric vehicles is much faster than most people think.

Four years ago (2016), the U.S. Energy Industry Administration (EIA) and other forecasters estimated that total electric vehicle sales would reach hundreds of thousands by early 2020. After selling 1.45 million electric vehicles in 2018 and forecasting 2 million in 2019, these agencies now expect to sell 6.5 million electric vehicles in 2024.

Clearly, these forecasts are still too conservative for ARK.

ARK says:

According to Wright's Law, we predict that electric car sales will reach 37 million in 2024, which is nearly six times the agency's general forecast. "

It is reported that Wright's law was first put forward by Theodore Wright in 1936, and the core content is that every time the cumulative output of a product doubles, the cost will drop by a constant percentage.

In the automotive sector, this rule has been followed since 1900, with each cumulative doubling of production reducing costs by 18 per cent. For example, the famous Model T in American history, its production and price change curve from 1909 to 1923 perfectly interpreted Wright's law.

While global car sales are expected to fall by 3.1 million, electric vehicle sales are expected to grow significantly over the next five years, ARK said. With the expansion of the factory size, the growth of electric vehicle sales may fluctuate, but with the gradual popularity of electric vehicles, electric vehicle sales should grow strongly.

Perhaps aiming at this trend, ARK has been a leader in electric cars as early as four years ago.$Tesla, Inc. (TSLA.US) $。

According to Whalewisdom, ARK established its position in ARK (Tesla, Inc. 's share price is between $35 and $45). As of September 30, 2020, the total number of shares held was about 3.43 million shares, with a total market capitalization of $1.47 billion, accounting for 8.75% of the position. It is understood that apart from ARKF and ARKG,ARK 's other three funds, the largest position is Tesla, Inc., with a weight of about 10 per cent.

Tesla, Inc. 's share price was about $645 as of December 23, 2020. Since the beginning of 2016, it has increased by more than 1300% in four years.

As of December 23, Tesla, Inc. is still in the first position of the ARK fund.

Jiancang Baidu, Inc., bet on autopilot?

Recently, riding on the east wind of "building a car"$Baidu, Inc. (BIDU.US) $Usher in a moment of highlight. And with the news that ARK funds bought Baidu, Inc. on a large scale, it pushed this upsurge to a high point.

As of December 23, Baidu, Inc. ranked 34th in ARK's position, with about 1.06 million shares and a market capitalization of about 205 million, with a weighting of 1.09 per cent, ARK disclosed.

Some analysts speculate that the logic behind ARK Jiancang Baidu, Inc. points directly to a development trend: autopilot.

Similarly, unmanned vehicle applications (Autonomous Ridehailing) ranked sixth among the top 10 viewpoints published by ARK in 2020, and was hailed as "the future of the transportation industry" (The Future of Transportation).

ARK believes that after a certain scale, self-driving taxis are expected to cost $0.25 per mile by 2024, equivalent to 1/10 of the current manually driven taxis, which will also accelerate the popularity of taxis.

Although the auto-ride-hailing service is a year later than originally promised, ARK research shows that the cash flow discount generated by the auto-ride-hailing industry over the next 10 years is equivalent to about 1.4 trillion in 2019 and is expected to reach 5 trillion in 2024 and 9 trillion in 2029.

ARK said that in the future, platform fees for ride-hailing companies will fall from 20% to 1%, while most of the fees will go to ride-hailing platform providers that own and develop self-driving technology.