Monthly Archives: March 2021

Tesla & Disruptive Innovation

A week ago, ARK Invest – the investment firm headed by longtime Tesla enthusiast Cathie Wood – published its revised share price target for the company for 2025. It expects Tesla shares to hit $3000 by 2025, raising its previous target of $1400 a share by 2024. That is almost four times the current share price. For a stock that was up 740% in 2020. Insane.

Tesla is, of course, ARK’s biggest holding across its funds, worth over $3.2 billion on paper. It is at the heart of ARK’s investment philosophy – disruptive innovation causes rapid cost declines, cuts across sectors, and breeds further innovation.

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February Commentary

In February, our net weighted average return in was +2.67%. Our net average return for the month by strategy:

  • Conservative: +0.54%;
  • Balanced: +2.53%
  • Growth: +4.34%.

Since 2015, we have generated a net weighted average return of +61.10%.

In last month’s commentary we spoke about how an increase in vaccinations, economic reflation and fiscal spending by major economies are having a positive impact on markets. These trends continued to gather strength in February. Although there is still trepidation about current and future virus mutations, countries that have been leaders in vaccination numbers are showing lower transmission rates and lower fatalities. These are very good things for the continued global recovery.

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It’s time to stop comparing the stock market to a casino

The long-term return profiles of investing in the stock market and playing at a casino are completely inverse. Comparing them does a disservice to the approach that investors should take, and can result in a short-term speculative trading rather than long-term investing and capital growth.

The Latvian version of this article is available in print in the March 2021 issue of Forbes Latvia.

Stanley Druckenmiller is one of the greatest investors of all time. His success has been founded on a fairly simple strategy: preserving capital and riding big wins. Over 30 years he averaged returns of over 30% without a single down year. Legend.

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