🔥 EXPLOSIVE GROWTH | ARK Invest Funds Made HUGE Moves (Not Just TSLA)!

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we are a volatile strategy well volatility on the upside is not a bad thing spectacular growth rates
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that no one is expecting uh there's a lot of money to be made we have our own philosophy five year
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investment time horizon truth will win out this is a bargain wow it has been quite an exciting month
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now that this channel has all grown up i think it's time we sat down and had the talk
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i just want you to be safe out there you know uh i'm talking about risk and volatility what
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did you think i was talking about the markets this year have been very choppy and archives portfolios
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are filled with some of the most volatile stocks our strategy just to give you a sense how volatile
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that is our strategy from mid-february through mid-may most people wouldn't admit this maybe but
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was down 37 percent peak to trough yikes so i want to talk about both sides of volatility
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since i think it's core to arc invest style of investing first i'll share a few ways that you
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can manage your risk on the downside without compromising your own investment goals after
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that i'll share archive's biggest position increases in october since many of them have
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exploded to the upside your time is valuable so timestamps are enabled for your convenience
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let's get right into it starting with volatility versus risk tesla stock is the only stock that
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arc invest has over 3 billion dollars in across all of their actively managed funds combined
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this year alone tesla has had multiple drops of over 10 percent in a single week tesla is also
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up over 40 in the last month on the news of hertz ordering 100 000 vehicles from them even though
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that's incredibly volatile nobody is complaining about it simply because that number is green
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as investors shouldn't we all be complaining about this i definitely want to hold more tesla stock
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and it just got way more expensive to buy the only other stock that arkhamvest has over 2 billion
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dollars in is teledoc ticker symbol tdoc and its share price has fallen off of two separate cliffs
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and it spent the entire summer in a landslide everyone is complaining about this stock because
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it's been grossly underperforming the market and has been dragging down every arc invest fund that
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it's in which is most of them i think this is a great company and it's basically been on sale
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all year as investors shouldn't we be loving that i'm not a financial advisor and none of
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this is financial advice but in my opinion buying an asset low and selling it high is a good way to
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make money i'm not being sarcastic here my point is very simple the stock price going down is just
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as important to making money as the stock price going up so if you find yourself worrying about
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both sides of volatility here are some ideas to help you turn this lose-lose into a win-win
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first off there's nothing wrong with defining your personal boundaries as an investor and sticking to
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them if roller coasters aren't for you don't get on the ride people don't say that enough however
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you should know that unlike a roller coaster you don't have to put all of your money in very
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volatile stocks if you don't want to and if you do want to you can still choose to average that money
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in overtime instead of getting on the ride all at once even though it's not always easy averaging
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in prevents you from buying at the top and is actually the simplest form of good risk management
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diversifying your holdings is another form of good risk management here's an example of a
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great little micro portfolio of just four holdings tesla palantir the grayscale bitcoin trust and spy
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which tracks the s p 500 in just three individual positions you've got exposure to the bleeding edge
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of artificial intelligence energy storage robotics enterprise software in a wide variety of growing
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markets and a cryptocurrency that more and more institutions are starting to put on their balance
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sheets then you can use the s p 500 as a hedge and lower the volatility of this little portfolio
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all while still getting very reasonable returns the less confident you are in picking your own
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stocks the more you can consider putting into spy until you clarify your position on the individual
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companies that you chose it's not all or nothing and people don't say that enough i get it we all
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have lives filled with more important things to do than tracking the stock market and reading
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investor presentations all day yeah totally that's where funds and money managers come in
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you can have a certified professional control some or all of your money through different types of
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accounts and investment vehicles that use a wide variety of strategies don't let any knucklehead on
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youtube tell you that there's something wrong with your retirement fund from vanguard or fidelity
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not even me for me personally though i want an investor that aligns with my vision of the future
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and the technologies that i think are making the world a better place i want a fund manager who can
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forecast these technologies reasonably well into the future and buy them at the right price today
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kind of like a value investor would but with a framework that works better for the young
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small cap volatile types of stocks that i like to hold here's a clip from a recent bloomberg
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interview with one such fund manager talking about volatility i actually enjoy pushback because again
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it tells me we're not in a bubble right and you know as a portfolio manager i much prefer to be
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climbing a wall of worry those are the strongest markets and here we are we are a volatile strategy
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well volatility on the upside is not a bad thing right and last year was a good example of that
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um but that's the charts but the other thing we we we said at the time and and we actually took
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our cues from a value investor who said to us i would never buy one stock in your portfolio
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but i like your research and you might be right so i'm gonna just
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put five percent there's a value investor five percent as a hedge uh and kind of thought we were
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behaving like a value manager long-term time horizon and looking for extreme values well value
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investors are using price to book and and dividend yield and that sort of thing we're using growth
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you know we're using spectacular growth rates that no one is expecting and tesla was our first
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proof of concept i would say a very visible one there's a lot of money to be made we have our
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own philosophy five year investment time horizon truth will win out this is a bargain this you know
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i believe i'm our compliance department say i believe that uh that innovation stocks are on
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sale so all that has happened in the last uh few months as the price has come down that means the
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law if we're right on our forecast that our rates of return have gone up so now i can take something
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like five or ten percent of my money and put it in say arc k which is kathy woods flagship innovation
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fund by doing that i've diversified the investing behavior that influences my results altogether
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since now a separate person manages some of my money i also end up gaining exposure to some new
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areas of technology like genomics and streaming and entertainment all in just five tickers and all
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without compromising on my personal investment philosophy i know what i hold and if i don't i
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at least can understand why my fund manager holds it at a high level why is that important because
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that's exactly how you get the conviction to hold these things as they drop 10 20 30 or more in the
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first place let alone buy more on the way down there's actually one more way to protect yourself
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from volatility without compromising on your investment ideas and that's to invest in assets
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that aren't correlated to the stock market i already mentioned one example the grayscale
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bitcoin trust which tracks the price of bitcoin another example would be real estate which is
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how investors like graham steffen meet kevin and even steven mark ryan got their start they can go
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for more volatile kinds of growth stocks because they've spread their overall financial risk across
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different types of asset classes like real estate and crypto as a fan of all three of those channels
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i don't think they point this out enough well not everyone can afford a mortgage and not everyone is
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comfortable holding crypto so how can we invest in assets that aren't correlated to the stock market
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i actually spent a lot of time digging into this and the partner for today's video is a great way
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to do just that masterworks dot io is the only platform that lets you invest in multi-million
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dollar paintings without breaking the bank i like masterworks because according to a recent report
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by citibank art had the lowest correlation to the stock market of any major asset class
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if an asset class is uncorrelated with another asset class that simply means that they behave
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differently before i found masterworks dot io i thought investing in art was only a hobby for the
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super wealthy but i was wrong contemporary art pieces have almost tripled the s p
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500's total return from 1995 to 2020 according to another study by citibank that's why billionaire
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art collectors end up allocating between 10 and 30 percent of their overall portfolios to art
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that's way more than you thought right on top of that the 1.7 trillion dollars held in art today
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is expected to grow by another 53 percent in the next five years according to the accounting firm
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deloitte masterworks is the largest buyer in the art market today and is looking to spend another
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400 million dollars on fine art in the next year alone then their platform allows you to invest in
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those paintings just like you would buy shares in a public company that means that masterworks dot
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io is disrupting one of the most exclusive asset classes in history by giving everyone frictionless
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access to fine art not just the ultra wealthy and that is really important to me here's how you can
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invest let's say you think this painting by banksy is going to appreciate nicely you would simply go
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to masterworks.io select the number of shares you want and then buy them now that you're invested
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in the painting you can either wait for it to be sold or if you want access to your money sooner
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you can sell your shares to their secondary market to somebody else in 2020 investors saw a 32 net
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return on their sale of banksy's mona lisa that's two times better than the s p 500. i think the
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reason that masterworks has such a long wait list is because they're making something that used to
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be impossible so easy so i reached out to them to give you all vip access to their latest offerings
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if that's how you want to diversify your portfolio i'll leave a link to that offer for you in the
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description below hopefully i've given you some useful ways on how to manage your investment risk
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without compromising your investment goals or the kinds of stocks that you like the most the
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reason i wanted to share that with you is because a lot of arc invests biggest increases over this
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past month have already exploded in price so they now have a much bigger downside let me walk you
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through them here's a table of all 156 positions that kathy wood currently has when you combine
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her six actively managed funds each row is one stock the rows are sorted by kathy wood's total
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position size in that stock and they're colored by the percent change in that position size
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relative to the change in arc invests assets under management at the start of october her funds had
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just under 38 billion dollars in them total and they now have just over 41 billion dollars in them
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which is a nine percent increase in aum the more green the row the more that position increased
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over the last month relative to that nine percent number the bigger the total position size
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the lower the rank rank 1 is always tesla so when you see the quick bait headlines about kathy woods
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selling hundreds of millions of dollars worth of tesla you can check this table and see that it's
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still arc invest's biggest position by far and the only reason she sold 16 percent of her shares
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is because they jumped nearly 40 percent in price likewise kathy wood can increase the
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weight of her positions in two ways she can buy more shares of the stock which is the first column
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or she can hold the stock as it continues to jump in price which is the second column
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so if we look at the second column we can see that many of the positions on this list
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increased by double digit percentages over the last month including tesla teledoc coinbase and
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unity software all saw huge jumps in share price over the last month this is huge volatility in
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arkhanvest's top positions but this time it's to the upside if you're taking screenshots do so now
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because i'm about to sort the table by the biggest changes in position size instead
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since this episode has been all about volatility and managing risk let me keep pulling on that
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thread kathy would increase the size of her cash position by over 50 percent which is one
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of the biggest monthly increases in her cash that i've seen since i've started tracking the data
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it's never a bad idea to make sure that you have some cash sitting on the sidelines ready for that
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next deal one such deal happened when scorpion capital released a short report on ginkgo bioworks
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at the start of the month dropping the stock's price by over 20 percent if you look at our
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trading and we do publish our trades at the end of every day we are not a momentum player uh if you
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were i was just talking about uh ginkgo over there and this is public um you know it got slammed two
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weeks ago by scorpion a new short end and so ginkgo got smack it was down 50 over a few days
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over this short report we were buying the heck out of it and then today it's up i don't know
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if it ended up 15 or 20 percent so we are not a momentum chaser we are a liquidity provider
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when you know what you hold and you have the cash to spend red days become your favorite days to
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help you know what you hold i've made deep dives on many of arkhanvest's highest ranking positions
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including ginkgo bioworks bitcoin teledoc coinbase and skills which i've put in one convenient
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playlist for you i'll leave a link to that in the top right hand corner of your screen right now
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and in the description below as well now that the metaverse is a hot topic i want to take
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another serious look at companies like facebook now meta and snapchat as well that's how the
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data drives the research that i share on this channel i'm interested in a lot of these stocks
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but they've just jumped in price so i'm adding them to my watch list instead i'm hesitant to
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highlight any of them so i'll report back if i find something worth talking about after i do
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more research since this channel has now hit 100 000 subscribers they grow up so fast i'm going to
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put all this advice into practice in my 100 000 portfolio which i'll premiere in the next episode
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the goal of that portfolio is to show you how the research and investing habits that i talk about on
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this channel all work together if you want to be updated as soon as i make an investment decision
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instead of waiting for me to make a video about it consider joining my highest tier patrons on
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patreon or channel members right here on youtube who already have access to that watch list and
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what's in my portfolio so far my next episode will be about this portfolio so i would wait
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until you watch that before deciding one way or the other to make sure you see that episode
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as soon as it comes out consider liking this video and subscribing to the channel with all
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notifications turned on that's also a great way to invest in the channel that invests in you
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and comment below or tweet me at ticker symbol u with your thoughts on volatility and risk
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are those the same things to you do you like it when stocks go in one direction but not the other
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do you often think about your overall portfolio including assets outside of the stock market
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do you do a good job managing your cash position and your watch list i read all of my comments and
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tweets and i'm excited to hear your thoughts either way i hope this episode gave you some
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fresh ideas or at least some good reminders thanks for watching and until next time this is
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ticker symbol you my name is alex reminding you that the best investment you can make is in you