A Process For Analyzing Innovators | Investing With IBD

TL;DR

Analyzing disruptive technologies requires a thorough understanding of their impact on various industries, cost decline curves, and platform innovations.

Transcript

when you're looking at disruptive technology something that could just change the way we work or you know or or play what have you uh i guess my concern is always that idea of betamax versus vhs right you know betamax was these two competing technologies and by by and large a lot of people were thinking betamax was going to win that fight and that ... Read More

Key Insights

• 😵 Disruptive technologies with cross-industry impact and platform innovations are attractive from an investment standpoint.
• 🖐️ Cost decline curves and market dynamics play a crucial role in assessing the potential of disruptive technologies.
• 👨‍🔬 Constant research and refinement of investment theses are required to adapt to changing technology landscapes.
• 🍉 Regulations pose a risk to investing in emerging technologies, and a long-term perspective is essential.
• 🤖 ARK Investment Management focuses on disruptive technologies in autonomous vehicles, drones, collaborative robots, and 3D printing.
• 💐 Autonomous taxis have the potential to significantly lower the cost of transportation and create a multitrillion-dollar market.
• 🐕‍🦺 Drones can revolutionize delivery services, especially in rural areas, and offer convenience and cost efficiency to consumers.

Questions & Answers

Q: How does ARK Investment Management determine the leader in disruptive technologies?

ARK looks for cross-industry disruptions with cost decline curves and platform innovations. They also consider market dynamics and the potential for user adoption.

Q: How does ARK Investment Management stay updated on evolving technologies?

ARK engages in living research, constantly tweaking and re-evaluating their investment models. They have a network of academics, investors, and industry professionals to discuss research ideas.

Q: How does regulatory uncertainty affect the timeline for investing in emerging technologies?

ARK acknowledges the risk of regulations and builds in a margin of error to their forecasts. They focus on a long-term investment horizon to account for uncertainties.

Q: What are some other areas of focus for ARK Investment Management?

They research autonomous vehicles, drones, collaborative robots, and 3D printing. They believe these technologies will bring disruption and cost efficiency to various industries.

Summary & Key Takeaways

• Disruptive technologies are those that have a cross-industry impact and can be built upon, making them highly investable opportunities.

• Evaluating the potential of disruptive technologies involves considering cost decline curves and market dynamics.

• Continuous research and refining of investment theses is necessary to adapt to changing technology landscapes.