Disruptive Innovation: ARK Invest’s Nine Big Ideas of 2019 (w/ Cathie Wood) | Real Vision™

I founded ARK Invest in 2014 for one reason,
and that was to focus solely on disruptive innovation. [MUSIC PLAYING]
We believe that there are five innovation platforms evolving at the same time. This has never happened in history. You have to go back to the late 1800s to see
three innovation platforms evolving at the same time– back then, electricity, telephone,
and the internal combustion engine. For the 50 years through 1929, because of
those innovation platforms, we experienced a booming economy and very low inflation. We see that happening with these five platforms,
which are all ready, we believe, for prime time. The five innovation platforms upon which we
base all of our research are DNA sequencing, robotics, energy storage, artificial intelligence,
and blockchain technology. These platforms cut across sectors. They cut across geographies. They cut across markets. And importantly, they are converging with
each other to spawn new innovation. A really good example of that is autonomous
taxi networks. What are autonomous taxi networks or autonomous
vehicles? They are robots. Autonomous vehicles are robots. They will be electric. So they’ll be run by batteries, and transportation
will be moving onto the grid. And they are powered by artificial intelligence. So those are three platforms converging. Now, just think about traditional research
departments. Who’s going to follow those stocks? These are platforms which cut across sectors
and geographies. Only with a new kind of research effort do
we believe that capital markets will fully be able to exploit these transformational
opportunities. So we have an open research architecture. We are sharing our research throughout the
world, especially on social media. We are living in the communities we’re researching. So we are pushing our research into Twitter,
into LinkedIn, into Facebook, into Medium, into any social network that we think will
help our analysts and our investors live in the communities we’re researching. In the spirit of our open research ecosystem,
I hope you enjoy the big ideas of 2019. [MUSIC PLAYING]
Deep learning is software that writes itself using large amounts of data. So all of a sudden, you don’t need programmers
to do this anymore. You just feed it lots of data. And the end result is so much more powerful
than anything that a small team of humans can write. Each wave of software disruption adds a huge
amount of value to our economy. When you look at the PC-driven software evolution
of that decade, that added about $4 trillion to the economy. The internet, which created the FANG companies,
added about $10 trillion. By our estimates, deep learning is going to
add $30 trillion to the economy. And this is really a testament to each wave
being larger than the next because software is eating more and more industries. PC era only ate a few industries like desktop
publishing. With the internet, it was maybe media. With deep learning, it’s going to be every
industry, everything from heavy construction to energy to retail to health care. All the big-ticket items were going to be
captured by deep learning. If you thought the internet was disruptive,
you haven’t seen anything yet. [MUSIC PLAYING]
Basically, if you hear the term digital wallet, you’re probably thinking of a small application
on your phone with your card storage and to make your payments easy. But that’s just the beginning. So digital wallets are soon going to emerge
as a financial ecosystem that are going to support a number of financial services. It could be your taxes. It could be your investing. It could be in your insurance or even access
to crypto assets. So they’re going to become a financial hub. In terms of digital wallet opportunity, if
you look at the growth of digital wallets in the US, it’s already 30 million users are
using digital wallets as of today. And we believe about 75% of the US adult population
will be using the digital wallet by 2023. Once the bank branch opportunity is realized,
around $200 billion of market capital will be attributable to digital wallet companies
like Credit Cash or Venmo that are playing in the space right now. So with digital wallet, it’s essentially a
bank branch in your pocket. So an access to financial services is as simple
as making a phone call. Hey, there. Hi. [MUSIC PLAYING]
Throughout the history of civilization, we’ve never really had the ability to transfer and
store value without relying on an intermediary or a centralized governing body. In 2008, Satoshi Nakamoto, the anonymous creator
of Bitcoin, proposed an alternative monetary system that was free from top-down control,
governed by the decentralized masses. So with Bitcoin, for the first time, we have
the opportunity to have true ownership of our wealth. And this, for the first time, allows us to
openly, globally, and borderlessly have an economy separate from existing monetary systems. Fast forward 10 years, and Bitcoin, as a network,
process is over $1 trillion of value annually. When you compare that to Western Union or
PayPal, Bitcoin surpasses that and is within an order of magnitude of Visa’s. So 10 years in, Bitcoin being volatile is
normal. This is not a six-year get-rich-quick scheme. This is a multidecadal shift in how we perceive
money and monetary systems today. [MUSIC PLAYING]
Lithium-ion batteries have been around since the early 1990s. But we’re approaching some really exciting
tipping points. The costs are coming down faster than anyone
anticipated. And they’re not just enabling electric vehicles
and energy storage. But they’re also changing the way we travel. We believe that, by 2023, there are going
to be 26 million electric vehicles sold globally. An electric vehicle will be cheaper to the
end consumer than a comparable gas-powered car. So to that end consumer, you’ll be deciding,
am I going to spend more for a gas-powered car that also costs more to refuel and has
higher maintenance costs? Or are you going to spend less on an electric
vehicle that also probably accelerates faster? What a lot of people don’t realize is that
battery cost declines aren’t going to just stop. Battery costs are going to continue to fall
and make endless applications available. [MUSIC PLAYING]
We think that autonomous taxis are one of the largest opportunities in the public equity
markets today. We expect autonomous taxis to be available
to consumers within the next year or two. And they’ll be extremely cheap. So the price of personal travel actually hasn’t
changed in 100 years. Since the Model T, It’s been about $0.70 per
mile to drive a personal car. That’s coming down to less than $0.30 per
mile. That’s an extremely dramatic decrease. And that’s less than a tenth of the cost of
a taxi. So there are many companies working on autonomous
travel today. And we expect a select group of those to be
the winners. This is a natural monopoly market. And we actually think the auto market, as
a result, will consolidate. We think that autonomous taxi networks should
be valued at $2 trillion today in the equity markets. And it’s virtually unaccounted for. In the next 10 years, the value of autonomous
taxis could grow to $7 trillion, which is actually larger than today’s energy sector. Personal travel is about to get much safer,
much more convenient, and, most importantly, much cheaper. [MUSIC PLAYING]
Next-Gen sequencing affects humans, plants, and bacterial life in a bunch of really interesting,
novel ways. For human beings we’re able to develop new
types of screens and tests and therapies for patients that have a whole broad spectrum
of different types of diseases. For plants, we’re able to increase productivity
and yield of different types of mainstay crops across the world. And we can also be able to develop new types
of computational techniques to run atop that data to be able to really give us new insights
into the progression of disease. So 2003 was the scientific community’s first
attempt at sequencing the entirety of the human genome in which we discovered that it
cost roughly $3 billion to perform that task and about 13 years of computational power
do the same. So flash forward to nowadays, we’ve cumulatively
sequenced about 2 million whole human genomes. And we expect that number to get up to around
100 million in 2023, which would expand the addressable sequencing market from about $3
billion today to a little bit north of $20 billion in five years. With all of this new data that we’re generating,
we can leverage new computational techniques running off of deep learning or machine-learned
architecture to be able to go in and yield actionable information that beforehand wasn’t
possible. [MUSIC PLAYING]
Only 5% of all monogenic diseases have any available treatment today. In most cases, we are addressing the symptoms
of disease rather than addressing the underlying root cause of disease. Enter CRISPR. CRISPR is a powerful editing tool for DNA
that can easily and inexpensively correct, delete, or repair genes with precision. CRISPR is emerging is one of the most promising
ways to cure disease from cystic fibrosis to sickle cell anemia and from cancer to childhood
blindness. So with CRISPR, addressing all 10,000 monogenic
diseases could total more than $75 billion per year in addition to $2 trillion in built-up
latent demand. Health care today addresses the symptoms of
disease. With CRISPR, we’ll be addressing that root
cause of disease. [MUSIC PLAYING]
When people typically think of robotics, they think of traditional industrial robots which
are caged off. But collaborative robots, they have sensors
on them. So if they bump into you, they’re not going
to knock you over. They’ll stop moving. And they’re very simple to program. Some of them are as easy as, you can take
the robot arm, you can move at one place, tell it to pick something up, move it somewhere
else, and tell it to drop it. Anyone could learn to program it within a
few hours as opposed to a traditional robot, which sometimes takes weeks or even months
to get set up. In 2017, roughly 400,000 industrial robots
were sold. Traditionally, almost all robots have been
sold into the auto industry. But what we’re seeing is, with the lower cost
of collaborative robots and the ease to retrain them, this is going to expand far beyond just
the auto industry. And so we’ll start seeing it in all types
of manufacturing. ARK forecast that there will be 3.4 million
robots sold in 2025. That’s going to supercharge productivity and
boost the economy. [MUSIC PLAYING]
3D printing is totally revolutionizing manufacturing. With 3D printing, complexity is free. So you’re allowed to create these structures
that you could have never created before with traditional manufacturing. So the interesting thing about 3D printing
is, a lot of people think the opportunity is over. There was this period in 2014/2015 where everyone
thought there’d be a 3D printer in all of our houses. And that never happened. We don’t think it ever will. The real opportunity for 3D printing is industrial
use cases– so markets like the aerospace industry or health care, for instance. Aerospace engines actually, in particular,
have lots of complex parts. And when you 3D print them, you can actually
reduce the number of parts that you need. So GE, for instance, has one part that goes
in the turbo prop engine. It used to be over 800 pieces. And now it’s just 12 with 3D printing. And with that reduction, you also get 20%
less fuel burn. 3D printing is roughly a $7 billion market
today. And we think it could go to over $90 billion
in the next five years. 3D printing is going to allow for innovation
like we’ve never seen before in manufacturing. It’s going to allow for new parts with new
designs that humans could have never imagined. [MUSIC PLAYING]
So now you’ve heard our nine big ideas for 2019. These ideas are at their tipping point. They’re investable today. They’re about to take off. They may not take off in terms of revenues
and earnings right away. But the market is beginning to understand
that there is so much innovation out there that is not being priced into the market that
valuations, multiples are beginning to rise in anticipation of these transformational
opportunities. [MUSIC PLAYING]

Paul Whisler


  1. Well read from the teleprompter Cathie Wood. One of the bigger idiots out there.

  2. Bitcoin in its current form won’t be around for very long. No one including “experts” can explain crypto simply. Everyone who tries says “it’s like…”- until that changes crypto won’t be sustainable.

  3. I’m 1000% in favor of self-driving cars for every other driver on the 405 except Me.

  4. "Disruptive" is not new, it's a buzzword designed to attract attention, followed by predictions.

  5. This is a great snapshot of insight into some fascinating technologies and investment opportunities. It truly gets your brain whirring.

  6. Props to Real Vision for giving these people a platform. It's good to see who's on the other side of the trade…

  7. In the sixties cancer affected 10% of Americans. Science has spent Trillions on cancer research since then and the end result? Cancer will affect 50% of Americans.

  8. What happens when common people cant afford it? Every great empire has fallen at the height of its innovation so dont sell me your b.s. people are starving commiting suicide. Who cares about your economy much less technology.

  9. I can add some more:
    1) PRIVACY – stop f**king spying on me!
    2) REAL FOOD – stop feeding me chemical food (butter not margarine)
    3) COLDER WORLD WIDE TEMPERATURE – Its global cooling fool! Massive collapse in solar minimum
    4) MEN WHO HAVE A HIGH SPERM COUNT – Hey its getting harder to make babbies
    5) RUGBY – Boom in the USA
    6) SAUDI ARABIA KINGDOM – Is not what it used to be
    7) CHINA – Uprisings, push back on all the spying, social media score card etc
    8) COMPETITION FOR REAL VISION TV – with hotter FOX News like babes !!!

  10. So technology fundamentally eliminates many of the reasons people travel…but a taxi service of the future is going to be worth 7 Trillion dollars? seems a bit contradictory to me. As does running a firm which specializes in old world investments in new technology. Cannot you now see how this very activity will have a negative drag? Instead of innovating and being disruptive the people will be more worried about financials and not disrupting one's investment. That has been the history of all this meshing of old and new. The rare projects which do truly move the ball are almost always self funded by the innovators themselves. Course once they grow to scale they are then sold off to "investors" and you never here from the gadget again.

  11. According to Munger there is Planck knowledge and there is Chauffeur knowledge. Everything about her is screaming Chauffeur. An asset gatherer trying to cash in on the latest trends.

  12. Id like to make a living smashing people like this…ArK…fake…This lady is clown.

  13. "Bitcoin as a network processes over a $1T of value annually that is more than Paypal or Western Union".. So, lets hype up Bitcoin a.k.a rat poison and make money on greater fools theory. Here is the trouble with the argument.. No one values the the unit of payment at Paypal or Western Union. If Bitcoin became a company and the asset was the network, that is fine. But, that is not what is happening..

    Its like I value a check I write to transfer money to you at $20 K .. Would you do that? NO! Shame on ARK for trying to hype up this rat poison and hook innocent retail investors..

  14. What I wanna know is their anticipated social effects of these disruptors.

  15. Basically we invest in companies that don’t have profits and they are all correlated.

  16. Excellente ta vidéo !
    PS : Si toi aussi tu t'intéresses à la création d'entreprise, à la liberté financière ou au business en général, jette un oeil à ma chaîne, je vais y mettre tout ce que je sais, ainsi que mes résultats très prochainement 🙂

  17. Mesdames et Messieurs, let me be the first to introduce you to America's first lady
    President of the United States…Catherine Wood. I sure hope she makes Elon Musk
    the energy secretary. Catherine Wood will be like Tesla in the auto market…many years
    ahead of the wanna bees. This looks like a lot of everything going into the future. Buckle up!

  18. Bitcoin is the modern day tulip bulb. There's no intrinsic value beyond human imagination. However when we start mining tons of gold from space, then our only monetary option may be fiat. Scary and exciting.😬

  19. naive overbearish on tech she will perform less than market over time just watch

  20. Ya ok, I learned a long time ago trying to invest in solar energy that disruptive does not mean profits. She is blowing so much smoke up your ass that your eyes are cloudy.

  21. Anyone else see the irony in her thick ass glasses and not being able to see the error in her ways?

  22. Thorsten Veblen – the machine and the price system
    100% of jobs can be automated

  23. People missed the Apple, Microsoft, Amazon, Nvidia of the world and they wish they had invested in these companies 10-20 years ago. The thing is, if you go back 10-20 years ago, you will never invest in these companies, because of the amount of hate and all the negative narratives surround them.

    After all, these companies were high growth stocks.

    So, if you want to find the next Apple or Amazon or whatever, you need to be able to invest in stocks or companies at that stage, when nobody is talking about and when everyone is so negative on that industry/company.

    Just saying.

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