Cathie Woods of Ark Invest believes in Disruptive Innovation defined as the introduction of a technologically enabled new product or service that potentially changes the way the world works. The company has big positions in Tesla and in crypto.
Ark identifies five primary disruptive innovation platforms underlying the most transformative period in history. Each of these platforms, it is believed, will create multiples trillions of dollars in market cap. over the next decade. The five trends are :-
Artificial Intelligence …
We believe that artificial intelligence (AI) learning systems will transform not only retail, media and telecom, as did the Internet, but all sectors in the economy, even those previously thought impervious to disruption, notably health care and financial services.
Underlying technologies include Neural Networks, Mobile Connected Devices, Cloud Computing, Streaming, and the Internet of Things.
Blockchain Technology …
With blockchain technology, we believe that more of everything in the world will become money-like: fungible, liquid, and quantified. Every corporation and consumer will likely have to adapt, calling into question the very structure of a corporation.
Underlying technologies include Blockchain, Fintech, and Frictionless Value Transfers.
Energy Storage ..
Declining battery costs should cause an explosion in mobile form factors. These innovations should increase the demand for electrical energy, displacing fossil fuels and reducing not only the vulnerability of grids but also operating expenses and the capital intensity of transmission and distribution.
Underlying technologies include: Battery Systems, Electric Vehicles, and Autonomous Mobility.
Advances in software and sensors should enable robots to operate alongside humans in all sorts of environments. If their unit costs decline by more than 50% while their capabilities increase, as we anticipate will be the case, robots should transform every business that depends upon physical processes and workflows.
Underlying technologies include: Adaptive Robotics, 3D Printing, Drones, and Reusable Rockets.
DNA Sequencing ...
As the cost to sequence a whole human genome falls precipitously, DNA Sequencing, a test once limited to the research lab, should see widespread clinical adoption and a hundred-fold increase in volumes, transforming health care completely.
Underlying technologies include: Sequencing Technology, Gene Editing (i.e., CRISPR), and Immunotherapy.
"Ark Innovation fund averages 30–50% per year and made an astonishing 150–200 % gain in the pandemic twelve months of 2020. Ark Invest .... we invest solely in disruptive innovation.
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