WEBVTT - Cathie Wood's Ark Jumps Back Into China

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Kathy Wood

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<v Speaker 1>is joining us with a lot of technical problems, but

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<v Speaker 1>we got are all settled out. She's founder, CEO and

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<v Speaker 1>chief investment officer of ARC Investment, joining us from Connecticut. Kathy,

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<v Speaker 1>it is so great to have you back with us.

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<v Speaker 1>We've been talking a lot about Chinese stocks and you

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<v Speaker 1>getting back into it. Talked to us a little bit

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<v Speaker 1>about your thinking right here, because it was just last

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<v Speaker 1>month that you pulled back on your exposure and we're

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<v Speaker 1>selling what changed. Sure, Yes, uh so, thank you for

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<v Speaker 1>inviting me, Carol. Very happy to be with you again.

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<v Speaker 1>Um So, we had been pulling out of China. We

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<v Speaker 1>started last November actually after after the debacle around the

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<v Speaker 1>ant group I p O and really the banishment it

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<v Speaker 1>seems of Jack Ma, and we saw increasing uh racing

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<v Speaker 1>signs that the government was going to get tough on

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<v Speaker 1>on companies we didn't know exact and and companies which

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<v Speaker 1>were more than unicorns. They had exploded onto the scene

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<v Speaker 1>and they had become so powerful, as had their leaders,

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<v Speaker 1>that they almost seemed to be threatening the government. At

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<v Speaker 1>least that seemed to be our take on the government's response.

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<v Speaker 1>So we were a bit cautious pulled away, and in

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<v Speaker 1>fact our flagship fund Um had moved out of most

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<v Speaker 1>Chinese stocks. I think we were out probably late April,

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<v Speaker 1>late May, somewhere around there. It might have been a

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<v Speaker 1>little bit later. Gradually, you never know of the time.

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<v Speaker 1>I think the online education Um really nationalization there, uh

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<v Speaker 1>was UM was a real valuation killer for the market.

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<v Speaker 1>So I think that the market is going to be

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<v Speaker 1>under pressure from evaluation point of view from a lot

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<v Speaker 1>for a long time now, because that that sort of

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<v Speaker 1>thing was so unexpected, uh even even from those of

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<v Speaker 1>us who saw the government tightening its grip on on

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<v Speaker 1>the country. Uh So, But what we have done, we

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<v Speaker 1>did after this last blood bath in the stocks, we did,

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<v Speaker 1>uh try and sort through, Okay, which companies are are

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<v Speaker 1>doing things the government likes and what we're seeing those

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<v Speaker 1>that are catering to tiers three, tier four cities, logistics groceries.

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<v Speaker 1>So you've seen us by j D dot Com. J

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<v Speaker 1>D Logistics is a big part of j D dot Com.

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<v Speaker 1>I think they owned seventy of it. Uh So that's

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<v Speaker 1>probably been our biggest purchase as well as some pin

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<v Speaker 1>Doo do for the same reason. But if you were

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<v Speaker 1>to look at what we were doing in those portfolios,

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<v Speaker 1>we were really whopping them out of other names that

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<v Speaker 1>we think are are going to be continue to be

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<v Speaker 1>in harm's way or certainly under government pressure, like the

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<v Speaker 1>Ali Baba's for example, which you've been selling. Correct. Yes,

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<v Speaker 1>So in terms of the recent crackdowns cathy that we've seen,

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<v Speaker 1>does it longer term generally making more pessimistic or optimistic

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<v Speaker 1>about investing in Chinese stocks? What's the call here? You're

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<v Speaker 1>a longer term investor, So what's the longer term play here? Well,

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<v Speaker 1>if you think about what China is doing, they're doing

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<v Speaker 1>many of the same things our own government and other

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<v Speaker 1>governments around the world are doing. Uh, you know, they're

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<v Speaker 1>most governments are concerned about data privacy, uh, national security,

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<v Speaker 1>and even even concerned uh in some ways about the

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<v Speaker 1>impact of social media on students and so forth. So,

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<v Speaker 1>but we just haven't We don't have the kind of central,

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<v Speaker 1>centrally controlled government that can you know, wipe those those

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<v Speaker 1>activities and risks off the face of the earth as

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<v Speaker 1>much as possible. That's just not who we are. We

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<v Speaker 1>do know that China wants to wants to be number

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<v Speaker 1>one in the world and economically certainly, and one of

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<v Speaker 1>the ways they want to do it is with innovation,

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<v Speaker 1>with technology. They want to bring more of it back

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<v Speaker 1>into their country. UH. Certainly the manufacturing side, UH, semiconductors

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<v Speaker 1>being one of the most important areas in which they're investing.

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<v Speaker 1>They haven't gotten it right. I've watched them invest in

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<v Speaker 1>semiconductors since the early nineties, UH, where they brought in

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<v Speaker 1>a lot of Taiwan semiconductor talent, and they just haven't

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<v Speaker 1>been able to crack the code. They don't want to

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<v Speaker 1>alienate the global investors, do they are. How important is

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<v Speaker 1>it that global investors stay invested in those Chinese stocks

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<v Speaker 1>and companies. Well, one of the things we've been learning,

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<v Speaker 1>as you know, as Chinese UH citizens have gone out

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<v Speaker 1>into the rest of the world, they've they've actually come

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<v Speaker 1>back many times when they come to New York City

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<v Speaker 1>or other places in the world where the infrastructure is

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<v Speaker 1>in need of an overhaul, they'll come back to go

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<v Speaker 1>back to their country and say, hey, we have it

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<v Speaker 1>pretty good here. I've heard that from a number of

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<v Speaker 1>younger people and so I think China has been able

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<v Speaker 1>to stir up a little bit more of a nationalistic

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<v Speaker 1>hey we haven't kind of good here and um. At

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<v Speaker 1>the same time, there is uh the risk of social

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<v Speaker 1>and rests um because of the rich and the not

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<v Speaker 1>so rich or the outright poor. So they are definitely

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<v Speaker 1>focused on that. The last thing, the biggest risk China

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<v Speaker 1>would have on its hands, I think is a revolution,

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<v Speaker 1>and it could be around that. I think that's why

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<v Speaker 1>it's stepped on on this kind of mega cap stock

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<v Speaker 1>as aggressively as it has. It realized it had just

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<v Speaker 1>mushroomed gotten out of control, certainly government control, and now

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<v Speaker 1>they're coming back to a certain little control. So more

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<v Speaker 1>pessimistic about China long term or more optimistic. I'm more optimistic.

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<v Speaker 1>I'm kind of turn it around a little bit. I'm

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<v Speaker 1>not pessimistic about China longer run because I think, um,

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<v Speaker 1>you know, they're very entrepreneurial society. Sure, the government is

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<v Speaker 1>um putting more rules and regulations in, but I don't

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<v Speaker 1>think the government wants to stop growth and progress at all.

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<v Speaker 1>What I will say though, is I'm a little more

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<v Speaker 1>optimistic about the United States and other economies. So it's

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<v Speaker 1>more of a relative sort of thing. The more insular

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<v Speaker 1>China becomes actually the less competitive in many ways. It

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<v Speaker 1>will be because artificial intelligence. Sure, you can have all

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<v Speaker 1>kinds of data about your own population China or Chinese government. Uh,

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<v Speaker 1>but in order to compete in the world, you're you're

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<v Speaker 1>going to need information everywhere. And I think governments around

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<v Speaker 1>the world are a little suspicious, suspicious of what is

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<v Speaker 1>happening now in China. What do you think the investment

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<v Speaker 1>environment will look like in China in five years from

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<v Speaker 1>now compared to what we're seeing today? And are the

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<v Speaker 1>Because you know, investors, everyone follows what you're doing, So

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<v Speaker 1>are you positioning for the five years from now? Sure,

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<v Speaker 1>we have a five year investment time horizon. I think

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<v Speaker 1>we're consolidating into the few names and these are not

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<v Speaker 1>in our flagship fund These are in other of our

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<v Speaker 1>more specialized funds. So we're consolidating our positions. So we've

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<v Speaker 1>taken it down, continued to take it down, but consolidating

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<v Speaker 1>more towards with higher positions in names like I described,

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<v Speaker 1>they're uh, you know, really focused on pier three, tier

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<v Speaker 1>four groceries, logistics, uh, manufacturing in China. So we'll we'll

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<v Speaker 1>stick with those while we wait and see. You know

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<v Speaker 1>how the government wants to play this if you think

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<v Speaker 1>about it, UM, One of the reasons this may be

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<v Speaker 1>going on now is UH, China saw what the Trump

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<v Speaker 1>administration was like. UH, and the Biden administration has been

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<v Speaker 1>just as tough in some ways, but perhaps not as

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<v Speaker 1>tough as a more conservative or hawkish administration would have

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<v Speaker 1>been around Hong Kong. And so we've got the mid

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<v Speaker 1>term elections UH in November next year. So this is

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<v Speaker 1>their window to do what they want to do, because

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<v Speaker 1>I do believe they're not They're feeling like, um, this

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<v Speaker 1>is a little bit of a window. And if the

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<v Speaker 1>more hawkish administration gets in later, then um, you know

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<v Speaker 1>they will have want to have done whatever it is

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<v Speaker 1>that makes sense. Hey, One more question on China are

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<v Speaker 1>Ben Baine, who follows the sec S down with Gary Gainstler,

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<v Speaker 1>chair of the Securities in Exchange Commission here in the US,

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<v Speaker 1>and he is coming out with the SEC demanding all

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<v Speaker 1>Chinese firms reveal more about investor risks. Basically, they're looking

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<v Speaker 1>for transparency and this requirement applies to companies already trading

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<v Speaker 1>here in the United States. What are your thoughts about

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<v Speaker 1>this good step? Is it going far enough? I mean,

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<v Speaker 1>Chinese companies haven't been great on complying with UH kind

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<v Speaker 1>of opening up things for the past two decades. What

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<v Speaker 1>doesn't need to change? Have we been too patient already?

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<v Speaker 1>I think I think there's been so much opportunity in

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<v Speaker 1>China from from such a low base, UM that a

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<v Speaker 1>lot of investors took more risks when we were at

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<v Speaker 1>a lower base and the growth growth was going to

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<v Speaker 1>be explosive UH, and they were willing to do that.

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<v Speaker 1>But I do believe with investor feedback UH that the

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<v Speaker 1>SEC is saying, wait a minute, this is a more

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<v Speaker 1>mature economy. Transparency is becoming more important now the growth

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<v Speaker 1>growth is not going cover all fins, right, It isn't

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<v Speaker 1>as explosive anymore. And I actually think it's a very

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<v Speaker 1>good move. I don't know if China is going to comply,

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<v Speaker 1>which means within I think it's a three year timeframe. UH.

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<v Speaker 1>Companies here would have to do list so that is

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<v Speaker 1>a risk and we are thinking about that as well.

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<v Speaker 1>All Right, gotta ask about some other names that you've

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<v Speaker 1>been buying, not just Chinese A d R S. I'm

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<v Speaker 1>gonna throw out some number some names, uh Soaring Eagle Acquisition,

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<v Speaker 1>the blank check company, far Fetch, the online retailer Palentiner, Fightser, uh, Semaphore.

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<v Speaker 1>Are some too simple holdings? Are Dave Wilson highlighted it

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<v Speaker 1>a couple of weeks ago. These are names that you've

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<v Speaker 1>been buying. Highlight a couple of them, and you're thinking, um, well,

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<v Speaker 1>uh it's a lot, yes, but well too simple. The

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<v Speaker 1>which has it was just back and uh it fell

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<v Speaker 1>to earth and we were able to get a very

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<v Speaker 1>nice sized position even in our flagship fund. We are

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<v Speaker 1>looking for autonomous plays, and autonomous trucking holds incredible promise. Uh.

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<v Speaker 1>We believe that autonomous trucking will be able to deliver

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<v Speaker 1>freight uh less expensively than rail does. Now. Now, if

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<v Speaker 1>you think about it, human driven truck trucks. Transporting streight

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<v Speaker 1>by human driven trucks costs twelve cents per ton mile.

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<v Speaker 1>That's not the way a lot of people measure it,

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<v Speaker 1>but we think it levels the playing field. Rail is

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<v Speaker 1>four cents per ton miles, and we believe autonomous trucks

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<v Speaker 1>will be three cents per ton miles. So we believe

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<v Speaker 1>that half of the freight in the United States that

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<v Speaker 1>is delivered by rail today has an opportunity to shift

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<v Speaker 1>over to autonomous trucks in the future. It's it's a

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<v Speaker 1>huge opera tunity. Um, let's see some of the uh

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<v Speaker 1>spac names. Uh that that um you have you read out? Yes? Uh, well, uh,

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<v Speaker 1>we're we're getting into um areas within the genomic revolution first,

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<v Speaker 1>very importantly into proteomics, a huge new field. Um. We've

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<v Speaker 1>we've uh been spending a lot of research dollars on

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<v Speaker 1>d n A and r n A, but RNA is

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<v Speaker 1>uh really the messaging for proteins, which actually are the

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<v Speaker 1>earliest where we see the earliest manifestation of disease. So

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<v Speaker 1>it's going to be a huge new space. And so

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<v Speaker 1>some of the names you see coming into the portfolios,

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<v Speaker 1>um are those and um, you're gonna have to uh

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<v Speaker 1>read some of the other ones. Well, I think pal

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<v Speaker 1>Palateers one in next folks are emailing me and said,

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<v Speaker 1>what you know, have Kathy talked about Palenteer and her

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<v Speaker 1>recent buy sure palent here. Uh, we believe that Palentier

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<v Speaker 1>has the opportunity to userve a lot of aws as

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<v Speaker 1>your Google compute over time. It is pushing artificial intelligence

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<v Speaker 1>out to the edge. And palent Here, because I think

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<v Speaker 1>it's roughly sixty of its business has been with the government,

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<v Speaker 1>much of that in intelligence agencies. Palent Here is um

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<v Speaker 1>we believe today UM uh using technologies that we will

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<v Speaker 1>find out about five years from now. They we believe

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<v Speaker 1>are so far ahead because of their expertise uh in

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<v Speaker 1>intelligence UH that is going to accrue to the company's

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<v Speaker 1>benefit in the commercial space as well. So they've entered

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<v Speaker 1>I think a year ago of their business was with

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<v Speaker 1>the government. Today it's closer to sixty uh and so

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<v Speaker 1>we've got um all of the commercial side to go.

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<v Speaker 1>So I don't think people understand how advanced palent Here

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<v Speaker 1>is technologically and how it's platform technologies pushing a out

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<v Speaker 1>to the edge are going to are going to really

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<v Speaker 1>take share over time from the more centralized services. It's

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<v Speaker 1>interesting that we're thinking about them that way now in

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<v Speaker 1>the cloud. So one other name I've got to bring

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<v Speaker 1>up with you. I'd be remiss not to you, And

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<v Speaker 1>I've talked about it a lot elon Musk and Tesla,

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<v Speaker 1>and I think we're all still trying to get our

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<v Speaker 1>head a little bit around what happened on AI D

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<v Speaker 1>and this human humanoid robot that he talked about to

0:14:57.200 --> 0:15:00.960
<v Speaker 1>take over boring work. How do you factor in? I mean,

0:15:01.040 --> 0:15:05.840
<v Speaker 1>Elon is somebody who throws out some really creative ideas NonStop.

0:15:06.000 --> 0:15:09.840
<v Speaker 1>How does that or what? What did you take away

0:15:09.840 --> 0:15:13.640
<v Speaker 1>from that presentation? Yes? What I what I took away,

0:15:13.760 --> 0:15:18.640
<v Speaker 1>especially in reading uh many many of the articles about it,

0:15:18.760 --> 0:15:25.400
<v Speaker 1>is that, um there are not many people who are deeply,

0:15:25.920 --> 0:15:30.320
<v Speaker 1>deeply involved with artificial intelligence, and that is who that

0:15:30.440 --> 0:15:35.080
<v Speaker 1>day was for. They were trying to attract AI talent

0:15:35.640 --> 0:15:42.160
<v Speaker 1>to tackle the most difficult and probably most transformational opportunity,

0:15:42.320 --> 0:15:46.440
<v Speaker 1>certainly in terms of transportation, all kinds of transportation, not

0:15:46.520 --> 0:15:51.120
<v Speaker 1>just cars and trucks, but ultimately drones and plays um

0:15:51.600 --> 0:15:56.600
<v Speaker 1>uh using artificial intelligence. So I think the press took

0:15:56.720 --> 0:15:59.760
<v Speaker 1>away see this was nothing. I was kind of entertainment

0:15:59.800 --> 0:16:04.160
<v Speaker 1>with this robot. But there they go, changing the subject again.

0:16:04.840 --> 0:16:08.240
<v Speaker 1>If anyone who was who has been steeped in an

0:16:08.440 --> 0:16:12.200
<v Speaker 1>AI and and wants to take up the challenge that

0:16:12.280 --> 0:16:17.760
<v Speaker 1>they're offering, uh got um got uh a tremendous perspective

0:16:18.120 --> 0:16:24.120
<v Speaker 1>on how far ahead Tesla is relative to almost anyone else.

0:16:24.160 --> 0:16:28.200
<v Speaker 1>I would say Google is is is up there, but

0:16:28.320 --> 0:16:34.320
<v Speaker 1>in in many ways in autonomous transportation, UH, Tesla is

0:16:34.320 --> 0:16:38.240
<v Speaker 1>is um U in the lead. So I don't think

0:16:38.240 --> 0:16:42.280
<v Speaker 1>it was the AI day was not for investors. It

0:16:42.360 --> 0:16:44.280
<v Speaker 1>was going to go over their heads most of it

0:16:44.880 --> 0:16:47.520
<v Speaker 1>um and and yet for those who tuned in, he

0:16:47.640 --> 0:16:52.960
<v Speaker 1>offered a little bit of entertainment. I suppose our intelligence

0:16:53.040 --> 0:16:56.360
<v Speaker 1>analysts were blown away, and in fact, if you look

0:16:56.560 --> 0:16:59.720
<v Speaker 1>on our website you'll see are we We put out

0:16:59.800 --> 0:17:03.680
<v Speaker 1>an newsletter every Monday morning and we summarized some of

0:17:03.720 --> 0:17:08.720
<v Speaker 1>the more important takeaways we had UH from that day.

0:17:08.840 --> 0:17:11.840
<v Speaker 1>So it sounds like no doubt about you're staying with Tesla.

0:17:11.960 --> 0:17:15.359
<v Speaker 1>You're still in on the company, in on the strategy,

0:17:15.840 --> 0:17:19.520
<v Speaker 1>without a doubt, without a doubt every passing day, especially

0:17:19.560 --> 0:17:26.200
<v Speaker 1>the more we learn about their AI expertise and um

0:17:26.320 --> 0:17:29.920
<v Speaker 1>how they're really driving this space, so to speak, much

0:17:30.000 --> 0:17:33.080
<v Speaker 1>faster than I think anyone else is. Right now, we

0:17:33.119 --> 0:17:36.159
<v Speaker 1>believe they have the pole position too, and we have

0:17:36.359 --> 0:17:40.040
<v Speaker 1>increased our our estimate here in the next ten years,

0:17:40.520 --> 0:17:45.919
<v Speaker 1>we think UH, the autonomous taxi network opportunity in the

0:17:46.000 --> 0:17:52.119
<v Speaker 1>US will be eleven to ten trillion dollars from nothing today.

0:17:52.200 --> 0:17:56.919
<v Speaker 1>Think about that eleven to our economy. Now it's not

0:17:57.000 --> 0:18:00.680
<v Speaker 1>just this economy. That eleven to twelve is a global opportunity.

0:18:00.680 --> 0:18:02.560
<v Speaker 1>But just to give you a sense of the size

0:18:02.560 --> 0:18:07.880
<v Speaker 1>of that opportunity, our autonomy is twenty one two trillion dollars.

0:18:07.880 --> 0:18:12.400
<v Speaker 1>This opportunity alone is twelve trillion. In ten years, the

0:18:12.440 --> 0:18:15.199
<v Speaker 1>market will start to recognize it, and we think we

0:18:15.240 --> 0:18:18.760
<v Speaker 1>will in the marketplace in the middle of this decade,

0:18:21.040 --> 0:18:26.639
<v Speaker 1>the market caps will probably be scaling towards the three

0:18:26.720 --> 0:18:31.080
<v Speaker 1>to five trillion dollar range for nothing. So even with

0:18:31.280 --> 0:18:34.600
<v Speaker 1>you know, the chip shortage is impacting the auto industry tests,

0:18:34.720 --> 0:18:38.000
<v Speaker 1>you know, you still remain steadfast on Tesla despite those

0:18:38.040 --> 0:18:41.280
<v Speaker 1>chip shortages that are impacting the overall industry. You know,

0:18:41.560 --> 0:18:46.879
<v Speaker 1>it's very interesting. On the last quarterly called uh test,

0:18:47.400 --> 0:18:51.119
<v Speaker 1>Elon himself said, you know, the chip shortage might be

0:18:51.280 --> 0:18:54.280
<v Speaker 1>lessening here. I know we're hearing uh GM and others,

0:18:54.280 --> 0:18:58.040
<v Speaker 1>but I have thrown out another thought out there. You know,

0:18:58.240 --> 0:19:02.640
<v Speaker 1>auto sales have dropped from eighteen and a half million units,

0:19:02.720 --> 0:19:05.600
<v Speaker 1>this is just the US at an annual rate in

0:19:05.760 --> 0:19:10.159
<v Speaker 1>April to fourteen point seven five. I do not believe

0:19:10.240 --> 0:19:14.040
<v Speaker 1>that is only because of a chip shortage. I think

0:19:14.080 --> 0:19:18.320
<v Speaker 1>it is the beginning of a massive transformation towards electric

0:19:18.720 --> 0:19:22.440
<v Speaker 1>and so a lot of individuals are not buying cars

0:19:22.480 --> 0:19:25.480
<v Speaker 1>because they know anything they buy now is going to

0:19:25.560 --> 0:19:29.479
<v Speaker 1>depreciate much more quickly now that electric vehicles are taking

0:19:29.480 --> 0:19:33.000
<v Speaker 1>off and they are growing exponentially. So I think something

0:19:33.000 --> 0:19:35.119
<v Speaker 1>else is going on. And it was really interesting on

0:19:35.160 --> 0:19:38.679
<v Speaker 1>the Magna call. I listened in when there's controversy like

0:19:38.760 --> 0:19:43.800
<v Speaker 1>this to these calls. UH one analyst to ask the CEO, Hey,

0:19:44.000 --> 0:19:47.080
<v Speaker 1>did you were you are surprised that GM changed its

0:19:47.200 --> 0:19:50.320
<v Speaker 1>forecast within one month? We're used this price as we are,

0:19:50.440 --> 0:19:53.639
<v Speaker 1>We're And Magna said, yes, something else is going on

0:19:53.720 --> 0:19:56.880
<v Speaker 1>out there, and I do believe it is the beginning

0:19:56.920 --> 0:20:00.560
<v Speaker 1>of a massive transition away from the intern all combustion

0:20:00.600 --> 0:20:04.399
<v Speaker 1>engine to electric. So no, I'm not concerned about the

0:20:04.480 --> 0:20:07.520
<v Speaker 1>chip shortage for for Tesla. So even after I talked

0:20:07.520 --> 0:20:09.480
<v Speaker 1>to you for twenty minutes, I still have twenty minutes

0:20:09.520 --> 0:20:11.879
<v Speaker 1>thirty minutes more of questions, but I've got to wrap up.

0:20:11.880 --> 0:20:13.840
<v Speaker 1>We've only got about a minute, and I so appreciate

0:20:13.920 --> 0:20:18.200
<v Speaker 1>your time here. I know you recently talked with another

0:20:18.240 --> 0:20:22.040
<v Speaker 1>member of the business news community. You said, there's no

0:20:22.119 --> 0:20:24.320
<v Speaker 1>way that we are in a bubble. You feel that

0:20:24.359 --> 0:20:26.560
<v Speaker 1>way about the markets, which is specifically when we look

0:20:26.560 --> 0:20:28.400
<v Speaker 1>at the tech space, we've seen quite a run up.

0:20:28.640 --> 0:20:32.640
<v Speaker 1>Not a bubble at all, Not a bubble at all.

0:20:32.840 --> 0:20:35.600
<v Speaker 1>I can tell you the differences in a bubble, and

0:20:35.640 --> 0:20:39.560
<v Speaker 1>I was in the last one. In that bubble, our

0:20:39.680 --> 0:20:43.160
<v Speaker 1>strategy would have been cheered on. People would have been

0:20:43.160 --> 0:20:47.160
<v Speaker 1>clamoring to get in. And sure we've had We've retained

0:20:47.200 --> 0:20:53.000
<v Speaker 1>our assets beautifully. But the February draw down from mid

0:20:53.040 --> 0:20:57.639
<v Speaker 1>februarye mid May uh was quite a big one. It

0:20:57.800 --> 0:21:03.199
<v Speaker 1>was for our flagship fund. I'm very happy that happened

0:21:03.240 --> 0:21:06.560
<v Speaker 1>because we've tested our retention here. Our clients really know

0:21:06.640 --> 0:21:09.199
<v Speaker 1>what they own, and we've set the stage for the

0:21:09.240 --> 0:21:12.959
<v Speaker 1>next leg up. We have a lot of fear in

0:21:13.000 --> 0:21:16.320
<v Speaker 1>the market. You hear more endless. If you look at

0:21:16.320 --> 0:21:19.639
<v Speaker 1>the ratings by and Sell, you can look at Tesla's ratings,

0:21:19.640 --> 0:21:22.640
<v Speaker 1>they're probably even buy and sell by Now maybe it's

0:21:22.640 --> 0:21:25.479
<v Speaker 1>a little more to the cell side. In a bubble,

0:21:25.680 --> 0:21:27.600
<v Speaker 1>it would be bye bye, bye bye bye. You get

0:21:27.720 --> 0:21:30.080
<v Speaker 1>a lot of fear from the street and we get

0:21:30.119 --> 0:21:33.720
<v Speaker 1>a lot of incoming questions associated with risk, which we

0:21:33.800 --> 0:21:37.560
<v Speaker 1>should get and are happy to answer. Uh. We get

0:21:37.640 --> 0:21:41.760
<v Speaker 1>more questions about risk than opportunity. In a bubble, you

0:21:41.880 --> 0:21:45.440
<v Speaker 1>get more questions about opportunity than risk. All Right, Gonna

0:21:45.520 --> 0:21:47.240
<v Speaker 1>leave it on that note. And I know when you

0:21:47.359 --> 0:21:50.840
<v Speaker 1>talk about the names the companies, you always often talk

0:21:50.880 --> 0:21:54.560
<v Speaker 1>about your research team that is looking into these companies. Uh.

0:21:54.680 --> 0:21:57.280
<v Speaker 1>And I know you credit them a lot with the

0:21:57.359 --> 0:22:00.200
<v Speaker 1>analysis they do as you guys invest in your five

0:22:00.200 --> 0:22:03.000
<v Speaker 1>different platforms. So thank you so much, Kathy, thanks so

0:22:03.119 --> 0:22:05.560
<v Speaker 1>much for giving us some time again here on Bloomberg,

0:22:05.560 --> 0:22:08.680
<v Speaker 1>Bloomberg Radio, Bloomberg TV. Be well. Kathy Wood, of course,

0:22:09.000 --> 0:22:12.080
<v Speaker 1>the CEO, founder and chief investment officer of ARC Invest,

0:22:12.200 --> 0:22:15.119
<v Speaker 1>joining us on the phone from Connecticut. You're listening to

0:22:15.160 --> 0:22:18.480
<v Speaker 1>Bloomberg Radio, Bloomberg Business Week, and this is Bloomberg