ARK Funds

[Lsbcal]

Here is a Morningstar analysis of ARKK:

https://www.morningstar.com/articles/1022903/digging-into-ark-innovations-portfolio

 

[copyright1997reloaded]

Anyone out there remember one of the Fav's from the dot com era, JDSU (or as Cramer used to call it "Just Don't Sell Us"). Got as high as $1000 before everything came crashing down.

I never invested in it (thank goodness).

https://www.stockspinoffs.com/2017/03/02/happened-jds-uniphase-stock-viaviviav-lumentumlite-solider/

 

[aja8888]

Sun Microsystems was another that went deep fast. Good company, good products (servers, their own chips, good software) etc.

 

[Sunset]

Sun Microsystems was another that went deep fast. Good company, good products (servers, their own chips, good software) etc.

Yep, same with [-]Notwell[/-] Nortel

 

[rt-texas]

Yep, same with [-]Notwell[/-] Nortel

Nortel was a client for about six years while they were riding high. Really enjoyed their money while it lasted. They contributed nicely to a couple of exotic vacations and a chunk of our early retirement funds. Gracias.

 

[copyright1997reloaded]

I notice there hasn't been a ton of "All hail ARK" posts lately.

 

[CincyDave]

I notice there hasn't been a ton of "All hail ARK" posts lately.

"All hail ARK"

 

[garyt]

I notice there hasn't been a ton of "All hail ARK" posts lately.

Seriously? They have a couple bad days and you want to gloat? If you made 200% like one of the funds did last year you can afford this drop. Sheesh!

 

[MRG]

I notice there hasn't been a ton of "All hail ARK" posts lately.

I bought more G on this mornings dip; thanks for asking.

 

[copyright1997reloaded]

Seriously? They have a couple bad days and you want to gloat? If you made 200% like one of the funds did last year you can afford this drop. Sheesh!

Relax, just a little humor. As an aside, how do you know how I've done in the last year? ARK has recently bought stocks I own, things like DM and VUZI. My basis on DM is under $11, VUZI under $5.

As was noticed on another thread, when people start to get really defensive of their "pet" funds and holdings (like CCIV), that is the time that alarm bells should go off.

 

[garyt]

Relax, just a little humor. As an aside, how do you know how I've done in the last year? ARK has recently bought stocks I own, things like DM and VUZI. My basis on DM is under $11, VUZI under $5.

As was noticed on another thread, when people start to get really defensive of their "pet" funds and holdings (like CCIV), that is the time that alarm bells should go off.

I don't know, nor do I care how you did last year. My point is, ARK was up 200%,150% and I think 125% last year. I don't think a couple down days is reason to take shots. You say it was just a little humor, so I apologize if I jumped. But I notice there tends to be a group of people here who if someone posts of investing in something they're not in, they'll be quick to jump if it goes a bit sideways. Be it indexers vs. stock pickers or whatever.

 

[copyright1997reloaded]

I don't know, nor do I care how you did last year. My point is, ARK was up 200%,150% and I think 125% last year. I don't think a couple down days is reason to take shots. You say it was just a little humor, so I apologize if I jumped. But I notice there tends to be a group of people here who if someone posts of investing in something they're not in, they'll be quick to jump if it goes a bit sideways. Be it indexers vs. stock pickers or whatever.

I think many of these funds will end up like Janus 20 and other hot funds of years ago. Having said that, it doesn't mean that they can't go higher - much higher and I too have been [-]speculating[/-] investing in these kinds of companies.

Does that mean it is a waste? No. In the 1800's and early 1900's a lot of America's railroad infrastructure was built as the result of British investment, and even in England in the 1840's there was a "Railroad" stock mania. The net result was that most of the investors lost money, but America ended up with a great infrastructure for growth.

Similarly, there will be lots of failures in terms of genomics, electric vehicles, 3D printing, and other "ARK" like companies. But a few of them will make it and I don't doubt we are on the cusp of vast changes in these fields.

I teach computer science (retired from mega-corp and now teaching CS in a college full-time). One of the things I try to drive (repeatedly) into new CS students is that each "crank" of the technology wheel (smaller->faster) processors, increased storage, faster communications results in new applications that are possible. It isn't that people 30 years ago weren't thinking of AI, speech recognition, vision systems, AR, VR, medical uses of chips/technology, gene research using computational devices, and so on. They were...it is just that in 45 years (when I learned to program) with a doubling of processing speeds and storage capacity every 2 years we have processors that are 2**22 = 4 million times faster, and it is THAT which makes these once far-fetched things possible. Even more important, I try to impress on them that IT HASN'T STOPPED, so what applications and use cases will THEY be able to work on in 4, 10, 20, 30 years.

But between now and then there will be a lot of run ups, new companies, but many failures and many hot funds that are no longer so.

 

[copyright1997reloaded]

Just thought I would post this gem, "The Winners of the New World"

You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now.

https://www.thestreet.com/personal-finance/the-winners-of-the-new-world-891820

To all riding the ARK wave and think "This time is different", it is always different and yet the same. The new world promised by railroad build out happened, the new world promised by electricity and the automobile happened, the new world promised by networking (the Internet happened), and the new world promised by genomics, AI, AR, and advanced manufacturing (e.g. 3D printing, additive manufacturing) will happen. That isn't the question. The question is what will happen with this new crop of "Winners of the New World" companies.

Again, don't misread me. I am invested in quite a few of them. But anyone who thinks "This time is different" and that there won't eventually be serious carnage along the way is fooling themselves.

 

[ncbill]

Nortel was a client for about six years while they were riding high. Really enjoyed their money while it lasted. They contributed nicely to a couple of exotic vacations and a chunk of our early retirement funds. Gracias.

Knew blue-collar employees at one of their local worksites who loved seeing their retirement (all in company stock, of course) balances reach the high 6 figures.

Most told me they'd sell when it hit a million, but instead they ended up riding it back down to 5 figures (or less)

 

[misanman]

Nortel was a client for about six years while they were riding high.

A number of years ago, I worked for a US company that Nortel acquired. They merged us together with another acquired US high tech company and things went down hill very quickly. I'm thinking it was a case of they had more money than sense. The merged companies went out of business in just a few short years.

 

[copyright1997reloaded]

All hail ARK.

https://getyarn.io/yarn-clip/5b842396-d7be-451f-9901-8dd02f997fec

On 2/6, I posted the "All hail ARK" sarcasm.

ARKK on 2/6 @ 149.46, 107.49 now
ARKG on 2/6 @ 108.90, 79.05 now
ARKW on 2/6 @ 175.80, 134.90 now
ARKF on 2/6 @ 57.79, 47.70 now

Are you "All hail ARK" folks buying more? Selling out? (The five stages of grief are denial, anger, bargaining, depression, acceptance.)

I know in my case I am in various stages on different holdings I own (some of which are owned by ARKx funds). Some I have jettisoned, some I've added to (and watched the knife slice though my fingers as the stock continues to fall).

 

[Sunset]

^^^^^^^^^ Now they are a deal

 

[r3saving]

Are you "All hail ARK" folks buying more? Selling out? (The five stages of grief are denial, anger, bargaining, depression, acceptance.)

Noting that "All hail ARK" is not applicable to my view point. In any event, I'm doing nothing with my ARK or other holdings at this time.

 

[MRG]

Noting that "All hail ARK" is not applicable to my view point. In any event, I'm doing nothing with my ARK or other holdings at this time.

+1
I bought some ARK for a 5 year investment.

Yawn.

ETA: Apple is down big too. What changed?

 

[copyright1997reloaded]

I should be posting this to the stock picking 2021 thread, initiated position in MSOS @ 43. (I already own CRLBF and VFF.)

Added some VUZI (an ARK holding).

 

[Lsbcal]

On 2/6, I posted the "All hail ARK" sarcasm.

ARKK on 2/6 @ 149.46, 107.49 now
ARKG on 2/6 @ 108.90, 79.05 now
ARKW on 2/6 @ 175.80, 134.90 now
ARKF on 2/6 @ 57.79, 47.70 now

Are you "All hail ARK" folks buying more? Selling out? (The five stages of grief are denial, anger, bargaining, depression, acceptance.)

I know in my case I am in various stages on different holdings I own (some of which are owned by ARKx funds). Some I have jettisoned, some I've added to (and watched the knife slice though my fingers as the stock continues to fall).

Those are sure ugly numbers if you bought in recent months. What happened in the year 2000 and afterwords was a nightmare for growth stock investors. But I don't think we are going into a recession for growth companies soon so maybe history will not quite repeat?

I think some of the information on the Ark site and podcasts are pretty fascinating. For instance, I listened to one where the Moderna CEO was interviewed and that technology is exciting. When I looked at the ARKK portfolio there were a lot of names I know nothing about. Is Tesla a buy here? Not at all clear but what is in investing?

PE's on growth had reached nose bleed levels. For instance, when I look at Vanguard's large growth ETF (VUG) it was at 2.4x the May 2011 number. Compare that to small cap value (VBR) which was at 0.9x the May 2011 number. And small cap value has been beating small cap growth since Oct 2020 by a wide margin. Small cap value has absolutely crushed large cap growth over that period.

Asset classes don't stay winners every year.

 

[Born2Fish]

On 2/6, I posted the "All hail ARK" sarcasm.

ARKK on 2/6 @ 149.46, 107.49 now
ARKG on 2/6 @ 108.90, 79.05 now
ARKW on 2/6 @ 175.80, 134.90 now
ARKF on 2/6 @ 57.79, 47.70 now

Are you "All hail ARK" folks buying more? Selling out? (The five stages of grief are denial, anger, bargaining, depression, acceptance.)

I know in my case I am in various stages on different holdings I own (some of which are owned by ARKx funds). Some I have jettisoned, some I've added to (and watched the knife slice though my fingers as the stock continues to fall).

I was a late arrival to ARK funds, buying small positions in ARKK, ARKG, and ARKQ in late January after reading about them here.

I sold them around Feb 24 and then watched them fall through today. Have not added back yet. Lost around $300.

I flipped Tsla 3 times since early Feb as it fell from 860 down to 540, making the final sell today at 600. Ended up with $40 total gain for my efforts.

I had done pretty good flipping Tsla for decent profit last year. It too volatile for me now.

 

[NW-Bound]

Just thought I would post this gem, "The Winners of the New World"

You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now.

https://www.thestreet.com/personal-finance/the-winners-of-the-new-world-891820

To all riding the ARK wave and think "This time is different", it is always different and yet the same. The new world promised by railroad build out happened, the new world promised by electricity and the automobile happened, the new world promised by networking (the Internet happened), and the new world promised by genomics, AI, AR, and advanced manufacturing (e.g. 3D printing, additive manufacturing) will happen. That isn't the question. The question is what will happen with this new crop of "Winners of the New World" companies.

Again, don't misread me. I am invested in quite a few of them. But anyone who thinks "This time is different" and that there won't eventually be serious carnage along the way is fooling themselves.

Nice post of an article from 2000, and thanks for sharing. It's great that TheStreet still kept the article. I am going to see if I can download and save this gem.

Yes, I recognize some of the stocks mentioned. Wow, it's been more than 20 years already.

I remember that back during the dotcom mania, many oldtimers in the investment world said that the young hotshot MF managers had never been through a bear market, and thought they knew it all and were smarter than their elders. Something never changes.


PS. The quoted article is dated Feb 29, 2000. Just a few days later, the Nasdaq set an all-time high at 5049. The subsequent decline saw it at a low of 1114 in Oct 2002. That's a loss of 78%, down to 22c on the dollar!

My diary shows that the Nasdaq took 15 years to recover from the dotcom mania. It broke 5056 on April 23, 2015.

 

[Lsbcal]

Nice post of an article from 2000, and thanks for sharing. It's great that TheStreet still kept the article. I am going to see if I can download and save this gem.

Yes, I recognize some of the stocks mentioned. Wow, it's been more than 20 years already.

I remember back than during the dotcom mania, many oldtimers in the investment world said that the young hotshot MF managers had never been through a bear market, and thought they knew it all and were smarter than their elders. Something never changes.


PS. The quoted article is dated Feb 29, 2000. Just a few days later, the Nasdaq set an all-time high at 5049. The subsequent decline saw it at a low of 1114 in Oct 2002. That's a loss down to 22c on the dollar!

Yes, that article is a great illustration of a crazy investment market. But there are always things to buy as long as a general recession does not loom. That article was written just at the sharp peak of the growth stocks shown in the following chart.

I think the antidote to this is shown on this chart below. Keep in mind each asset class is shown relative to the SP500. The market (SP500 in the chart) could go up or down but there is usually an asset class that is outperforming versus it.

Disclosure: I have a lot of small value stocks in my portfolio. Also I've shown this chart elsewhere so sorry for repeating myself.

 

[NW-Bound]

The market (SP500 in the chart) could go up or down but there is usually an asset class that is outperforming versus it...

And it's also the reason I am not an indexer, though I try to be diversified. The idea is that holding individual stocks or at least sector ETFs will help me identify hot sectors vs overlooked sectors.

Timing the rebalance between sectors for contrarian moves is of course not easy, but at least I know about the possibilities and not keep my blinders on.