In their latest episode of the VALUE: After Hours Podcast, Brewster, Taylor, and Carlisle discuss ARKK Flat For Past 5 Years. Here’s an excerpt from the episode:
Tobias: This is another thing we were talking about before we came on, but do you think that the flows to something like ARKK, which I think is kind of representative of the bubble that went through, the flows to ARKK have been incredibly strong over the last 12 months. They’ve not dipped at all.
Bill: I’ve never had an opinion on this and I’m not going to start.
Jake: Oh, come on. This is a podcast, sir.
Bill: Look, I don’t know. One, I think some of those people are maybe doing the right thing. Two, I don’t understand how the hell that entire investment complex is structured, but I never have.
A lot of those things are up. If you go to the top, they’re down a ton. But if you go back to 2018, 2019, they’re performing pretty well. So, I don’t know. Is this before the crash when they’re all screwed or is this just a selloff that you got to deal with and you realize now, you get 70% forward returns. Who the hell knows? I wouldn’t bet on it.
Jake: [laughs] Oh, man. I don’t know the compliance, how they do that, but– [laughs]
Bill: They don’t have compliance. They ask for forgiveness, not permission.
Jake: Where we’re going, we don’t need compliance.
Bill: That’s right. They’re in the future with ChatGPT as their compliance.
Tobias: Do you know who did have a good year last year? It was Berkshire.
Tobias: How does he keep doing it?
Jake: So, I’m looking like ARKK, the main one, I think is, it’s flat from August of 2017.
Bill: Ooh, that sucks. Perfect buying opportunity.
Jake: That’s a pretty far round trip.
Bill: Well, do you know how much innovation has gone on since then?
Tobias: It’s more than five years, right? Is that five years? 2018, 2019, 2020, 2021, 2022? Yeah.
Jake: I got to take my shoe off to get to numbers that high. [laughs]
Tobias: I can do it in on one hand.
Bill: Yeah, boy. That is [crosstalk]
Tobias: I was counting with my fingers. [crosstalk]
Jake: There weren’t a lot of dividends, I don’t think, coming out of that portfolio either to worry about, right?
Tobias: It’s a really low dividend. I had to manually put the dividends in when I was doing the forward return calculations that I do. Because if you put in zero, it riffs out.
Bill: Yeah, that’s nuts.
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