Interview with ARK Investment CEO Cathie Wood

Here’s a link to a great Bloomberg interview today with Cathie Wood, the brilliant CEO of ARK Investment.

It’s a 34-minute interview covering a bunch of topics, but for me the biggest takeaway was that Cathie and ARK strongly believe that the next great SaaS-like hypergrowth sector of the market will come from the genomics industry. Since we are currently largely focused on SaaS here on Saul’s Board I am very interested in diversifying my holdings to other potential hypergrowth sectors, and I had already been making some small investments in this sector. Coincidentally I had just opened a starter position in ARKG (ARK’s Genomics ETF) earlier this morning before watching this video, and after listening to Cathie’s conviction on genomics I expect I will be adding to this position in the near future.

Hope you find this interview as interesting as I did!

Cheers and Happy Holidays to all!



I have been thinking about this…

If you do a bit if DD, you realize that EDIT, CRSP and NVTA are still very early in their life cycle… and yet, the hype cycle is already getting out of control.

On every PR these companies release, which for the most part showing some “pre-clinical” study data or “intention to file IND”, the stock goes up by 10% to 30%… to my understanding, final product and revenue would be years away from mile-stones and in “normal times”, only VC or strategic investors would invest in these “high risk / speculative” programs.

If you were looking for equivalent to what was .com in 2000, it seems to me that it will likely be Genomics this time… where market start bidding up on future, un-proven potential as if all the business is already in the bag…

Doesnt mean you dont get on this roller coaster, just recognize what it is likely be… a roller coaster running on rocket fuel…

And BTW - some members of this board still beat Kathie’s ARK hands down without TSLA or NVDA… just with SaaS / cloud stocks.

For me, though I am tempted to get some ARKG for fun ride but I see such a strong growth and long runway in proven and cash generating cloud / SaaS stocks we discuss here, that I would stay put in these for most of my portfolio.


Ark got Tesla pretty right. There were many fans but they did make a large vocal bet, and won.

What is it do you think she saw that many did not?

But you are right that during the tech bubble it was not clear at all what the difference was between an Amazon and a They both were seeds and most did not know if it was the seed of an oak or of a weakling.
The science and the techs of genomics have made remarkable progress over the past decade and everyone wants to see how to make money out of that. We are today facing the same problem of distinguishing the Amazons from the pet.coms. Can we really do that successfully while nothing has grown out of the soil yet?

I know that this is not how investments are done on this board (not thematically but rather based on the numbers of each individual businesses). But maybe there is something to say about how Saul shifted from sneakers to SaaS businesses back in 2015. How did that happen?



I am a new Saul board follower here, so I will tread carefully. Oh how I wish I had come across Saul’s board 10 years ago as opposed to 3 weeks ago.

Having read the knowledgebase and other articles (thanks Saul for the great starting points), I clearly see that ARK family of products are not the topic of this board. I ask though - how do we, as individual investors in this time of masses of investors rushing to the new ideas, identify the new Amazon vs in the new areas as the SaaS investment space gets more crowded?

So my thesis is that funds like ARKG can be used to help identify potential future investments for this board. As nilvest pointed out, many of the genomics companies are clinical stage or early revenue so they don’t yet fit the model here – but some of them will in the future. So following ETFs such as ARKG can potentially aid in identifying them early before the masses rush in further.

Because I have just started reading Saul’s investing philosophies 3 weeks ago, my portfolio does not yet fully follow the model here. Thus I did not have 200% gains in 2020 that many of you saw, though I did beat the Nasdaq with a 57% gain (with a devastating March). My “OK” 2020 recovery was in part due to pivoting in April and May and taking positions in what I just learned were 8 of the top 20 holdings by board members - per the summary spreadsheet someone posted earlier this week. I guess already heading down the Saul path - thanks to TMF for some of these recommendations.

Another position I took in early May was in fact ARKG. After looking at 12 genome related companies, I narrowed my interest to 5 where I had higher level of interest. Since my conviction level was not what I would call high, I looked for smaller ETFs that had enough positions in the 5 where I would benefit from them if I was correct but “hedged my bet” a bit just in case. I found ARKG - at the time a ~$2B fund with 39 holdings. It had 3 in the top 5 holdings (NVTA, CRSP, TWST) and a 4th in the top 15 (FATE) for a total of 29.5% of the portfolio at that time.
ARKG also had in the top holdings:

  • 2 high growth, high margin companies I was looking at that could potentially fit the Saul model (TDOC, PSTG)
  • 1 testing company that I believe to have high growth potential (EXAS)
    These 7 stocks were 41% of ARKG and I had reasonable (though not high) conviction in them based on my analysis at that time. So I pulled the trigger.

And after my initial success with ARKG, I later picked up some ARKK. My YE gains in these were 116% (ARKG) and 89% (ARKK).

Going forward, as I read more on this board and shift my DD more to of the model espoused by Saul and company, I will adjust my portfolios by selling existing positions and buying new or adding to positions based on strong convictions. In fact I have already closed out 5 positions this year and added to my existing positions in CRWD, DOCU, & OKTA.

That said, I think I will be holding on to ARKG (and maybe ARKK) for a while and watch Cathie Wood and her holdings closely to see what she thinks is the next big thing - to get ideas on where to investigate further as the SaaS investment space gets more crowded in 2021 and beyond. I do believe she will have a hard time replicating her results given the growth of her funds to $4B and $13B (and ARKW to over $5B), but I also believe we can learn from her to mine the gems that fit the model here for our purposes.

Thanks again to Saul and the rest of the active Fools here for getting me back on track with my investing. And I promise that any further posts will be on target for this board.