Cathie Wood: Current tech volatility cannot be compared to the late '90s

Key Concepts:

• Volatility in stocks
• Original research
• Scaling of new technologies
• Comparison to the late 90s
• Wright's Law

Main Topics and Key Points:

The speaker addresses the perceived volatility of the stocks they own and how they manage to "sleep pretty well at night" despite this. The key point is that their confidence stems from rigorous, original research. This research focuses on understanding how new technologies will scale.

Comparison to the Late 90s and the Importance of Context:

The speaker explicitly rejects the comparison of the current market environment to the late 1990s. They argue that the seeds for today's technological advancements were planted during the two decades leading up to the late 90s. These seeds are now flourishing. This implies that the current growth is built on a more solid foundation than the dot-com bubble.

Wright's Law and Scaling Technologies:

The speaker highlights the importance of "Wright's Law" in their research. This law allows them to understand how these technologies are going to scale.

Notable Quotes:

• "Our research uh we're doing original research white sheet of paper how are these new technologies uh going to scale..."
• "...many people equate it to the late 90s it that couldn't be further from the truth..."
• "...we've centered our research on something called rights law and we're able to understand how these technologies are going to scale..."
• "research research research"

Technical Terms and Concepts:

• Volatility: The degree of variation of a trading price series over time, usually measured by standard deviation.
• Original Research: Conducting independent studies and analysis rather than relying solely on existing information.
• Scaling: The ability of a technology or business to handle increased demand or growth efficiently.
• Wright's Law: Also known as the experience curve, it states that for every cumulative doubling of units produced, costs will fall by a constant percentage.

Logical Connections:

The speaker connects their ability to handle volatile stocks to their in-depth research. This research is then linked to understanding the scaling potential of new technologies. The comparison to the late 90s serves to highlight the difference in the underlying foundations of the current market. Wright's Law is presented as a key tool in their research methodology.

Synthesis/Conclusion:

The main takeaway is that the speaker's confidence in their investments, despite their volatility, is rooted in thorough, original research focused on understanding how new technologies will scale. They use Wright's Law as a framework for this analysis and differentiate the current market from the late 90s by emphasizing the foundational work that has already been done. The emphasis is on the importance of research as a means of understanding and navigating the complexities of the market.