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[@TheDiaryOfACEO] World's No.1 Investing Expert: The Big Shift Is Coming! This Investment Could Be 15x in 5 Years!

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@TheDiaryOfACEO - "World's No.1 Investing Expert: The Big Shift Is Coming! This Investment Could Be 15x in 5 Years!"

Link: https://youtu.be/ZznpMh0DegE

Short Summary​

Number One Action Item/Takeaway: Embrace disruptive innovation and actively learn about emerging technologies like AI, robotics, energy storage, blockchain, and genomic sequencing to position yourself for future investment and job opportunities.

Executive Summary: Kathy Wood advocates for investing in technologically enabled, disruptive innovation, particularly in AI, seeing it as the most transformative trend. She highlights Tesla as a prime example of an AI project and emphasizes the importance of understanding and adapting to the rapidly changing technological landscape to capitalize on immense future growth potential.

Key Quotes​

Here are five quotes extracted from the transcript:

  1. "AI is the biggest dis technological disruption in history and if they're not going to get it right we're not going to be there so if I want to invest in AI if I agree with you Kathy and I said you know I think I think you're right that AI is the biggest technological wave coming into shore and the biggest opportunity h how should I be investing my money in in in your view how are you investing your money to capitalize on AI"

  2. "Tesla is the largest AI project on earth."

  3. "We believe that um the entire ecosystem associated with autonomous uh taxi networks is going to be worth 8 to10 trillion dollars in terms of revenue generation in the next 5 to 10 years. And if you want to put that in context, the the entire GDP of the world today is about 130 trillion. So 10 trillion is going to move the needle."

  4. "According to our research, the technologies around which we have centered our research uh and which have focused our investments, they we believe will go up more than tenfold in the next five to 10 years."

  5. "I do think it's going to work out. And I think the stock market is beginning to smell it. If I if I just had to invest in one stock right now, what stock would you recommend I invested in? Okay. Well, I have to give you our portfolio pick. So, it would be Tesla. It would be Tesla if I if I had to give you one stock. Okay."

Detailed Summary​

Okay, here is a detailed summary of the provided YouTube video transcript, focusing on the key topics, arguments, and information discussed, while excluding promotional or sponsorship segments:

  • Introduction of Kathy Wood:

    • She oversees nearly $30 billion in investments.
    • She focuses on investing in technologically enabled companies that are transforming the world.

  • Key Investment Areas (Innovation Platforms):

    • Robotics
    • Energy Storage
    • Artificial Intelligence
    • Blockchain Technology
    • Multiomic Sequencing (Life Sciences)

  • The Need to Adapt to Change:

    • The world is moving rapidly, creating both disruption and opportunity.
    • The importance of being on the "right side of change" to capitalize on investment and job opportunities.

  • Apple vs. Tesla (AI Example):

    • Many see Apple as a safe investment, but Wood believes it's vulnerable to disruption by AI.
    • Apple’s revenue growth has slowed to almost nothing, turning it into a mature cash cow.
    • Tesla is positioned as the largest AI project on Earth.

  • Investing in AI:

    • Previously, Nvidia was the primary way to invest in AI (GPU manufacturer), but its valuation became very high.
    • Tesla and Palantir are key investments for capitalizing on AI.

  • Tesla as an AI Project:

    • Tesla is the largest AI project on Earth, primarily due to its autonomous vehicle initiatives (robo-taxis).
    • The entire ecosystem associated with autonomous taxi networks could be worth $8-10 trillion in revenue in the next 5-10 years.
    • Tesla is planning to launch Cybercabs using Model Y vehicles in Austin.
    • Cost of transportation is expected to decrease dramatically with autonomous taxis (potential for 25 cents per mile vs. $2-4 per mile for Uber).

  • Beyond Ground Transportation:

    • The discussion expands to EVTOLs (electric vertical takeoff and landing vehicles) for air transportation.
    • Archer is an EVTOL company in their portfolio.

  • AI in Healthcare:

    • AI's most profound application will be in healthcare, enabling early cancer diagnosis via blood tests.
    • Convergence of DNA, RNA, and protein sequencing technologies, plus CRISPR gene editing, is beginning to cure diseases.
    • CRISPR Therapeutics has developed a therapy to cure sickle cell disease and beta-thalassemia with one treatment.

  • Tesla's Past Predictions and Future Outlook:

    • Wood accurately predicted Tesla's stock reaching $4,000 (pre-split), even when many believed the company would go bankrupt.
    • The current price target for Tesla in 5 years is $2,600, with 90% of the valuation coming from the robo-taxi platform, not just electric vehicles.
    • Humanoid robots are a growing part of the Tesla story, potentially dwarfing the robo-taxi business in the long term, with a potential $26 trillion revenue market.

  • Impact of Robotics and AI on Humans:

    • The history of technology has been a net job creator but robots are getting awfully close to what humans do.
    • Productivity through robotics and AI will be essential.
    • Robots and AI could fill the gap of lack of productivity because our society is going to be like an inverted pyramid, more elderly and less young people.
    • New jobs will need to be inherently human, such as creativity and ingenuity.
    • Vibe coding, the use of natural language to create code, is democratizing programming and will allow more people to customize technology.

  • Economic Growth and Innovation Platforms:

    • Historically, real GDP growth was 0.6% per year (1500-1900).
    • The industrial revolution brought real GDP growth to 3% per year (past 125 years).
    • If Wood's predictions are correct, real GDP growth could accelerate to 7.3% in the next 5 years due to the five innovation platforms.
    • The rate of growth in this decade could be more than twice where we've been.
    • Get on the right side of change for investment and job opportunities.

  • Value of Relationships:

    • Relationships are going to become more important.
    • Machines can do things that can easily hug benchmarks, S&P 500, MSCI world or NASDAQ.
    • In order to earn a place in the new world, add more value than a machine can.

  • How to Determine an Innovation Platform:

    • Follows Wright's Law: measures learning curve to see how fast costs are going to decline with the new technology (technology is deflationary)
    • Will cut across economic sectors and applies to more than one group of people
    • Serves as launching pads for new technologies (DNA Sequencing and CRISPER gene editing)

  • Potential Unemployment:

    • Unemployment rate in 5 to 10 years will be the same or lower than now and this is because baby boomers are retiring.
    • It's not because there are more jobs created because the jobs that will be created need to be inherently human.
    • Robots are automating processes very quickly and careers are becoming shorter
    • There will be a lot more experimentation and people taking risks on themselves.
    • The corporation might change.

  • Bitcoin Investment:

    • Initially invested in Bitcoin in 2015 at around $250.
    • Art Laffer felt that Bitcoin could serve the three roles of money, store of value, unit of account, means of exchange and it was the rules-based global monetary system he had been waiting for since the US closed the gold window.
    • Bitcoin is now a $2 Trillion market cap and is halfway to the original 4.5 Trillion.
    • Bitcoin is not just a global monetary system, it is a new asset class.
    • It's a way to diversify one's portfolio.
    • Institutions just started considering Bitcoin.
    • Current market cap is only 100 billion of new market cap, so there is still a lot of room for incremental demand.
    • Forecast for 2030 is $1.5 Million.
    • It will be important to the emerging markets because Bitcoin will be a stablecoin.

  • The Big Three Crypto Assets:

    • Bitcoin: Global monetary system and backed by the largest computer network in the world
    • Ethereum: New Technology for financial services that's native to the internet
    • Salana: Native currencies to the internet that transform the financial services industry

  • Coinbase Investment:

    • It is an exchange for digital assets and derivatives
    • It's gone global and has bought Darabit.
    • It is the most regulatory compliant exchange in the world.
    • It is going after derivatives market

  • AI Investment (Stocks):

    • Tesla is a key stock
    • Palantir is a platform as a service company that helps governance move into the digital age.
    • TSM is the platform for chip manufacturing.

  • Top 10 Public Stocks to Invest In:

    • Tesla
    • Coinbase
    • Robinhood
    • Roku
    • CRISPR Therapeutics
    • Palantir
    • Archer
    • Shopify
    • Roblox

  • Philosophy on Wealth Creation (with $1000):

    • Average into an ETF
    • ARK ETF
    • Averaging In: buy a little every month or payday and close your eyes. It's a long term investment.

  • Potential Investment Strategy:

    • ARK focused on explosive convergence of AI, robotics.
    • ARKI (Europe): Focuses on Artificial intelligence and robotics.
    • ARKG focused on healthcare applications of AI.

  • Ethereum and Cryptocurrencies:

    • They're key to the financial services revolution.
    • Bitcoin is the biggest idea and will serve the three revolutions; global monetary system, new asset class and new technology.
    • Interested in Stablecoins, but they are just like cash.

  • Importance of Research and Communication:

    • The company does research, makes investments and communicates why they're doing it.
    • Learn why they've invested the way that they have.

  • Trump Tariffs:

    • When Trump was elected the stock market went crazy because of deregulation.
    • Hopes to get rid of tariffs in the US.
    • Lower tariffs, lower taxes and lower interest rates is what Trump wants.
    • Trying to get non tariff trade barriers down.
    • The stock market is beginning to smell it.
    • Sensitive to business.

  • Concerns about the Future:

    • Wood is generally optimistic, but concerned that people will be caught out by new technologies and unwilling to adapt.
    • The whole transportation industry is going to be disrupted and the retail industry.

  • The Future of Education and Initiative:

    • If initiative is put in place, there will be so much opportunity.
    • Creativity is going to be so exciting.

  • Super Intelligence:

    • Human brains make predictions based on information and AI does too, with neural networks
    • The word disruptive means the traditional world order and patterns are going to change.

  • Advice for success (Make your boss look brilliant):

    • Make him or her look good
    • Show gratitude
    • Have growth opportunities
    • Have high conviction in what you're doing

  • The Power of Confidence:

    • Having confidence in understanding the way the world works from a macroeconomic point of view is critical.
    • Jennison Associates gave Wood the opportunity to get into Equity Research.
    • Arthur Laffer supported Wood with economics and confidence.

  • The Craziest Idea that Turned Out to Be Right:

    • Autonomous vehicles are robots!
    • Transformers that are robots that are able to carry a lot more weight.
    • Boring for Mars.

I hope this is helpful!