Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Ark’s Cathie Wood lets retail investors bet on Elon Musk’s private startups and Trump proximity

Nov 21, 2024 - fortune.com
ARK Invest is offering retail investors the opportunity to invest in Elon Musk's private startups, including SpaceX, X, and xAI, through its ARK Venture Fund. The firm believes investors could benefit from Musk's entrepreneurial skills and his close relationship with President-elect Donald Trump, which could influence policy and create a stronger environment for innovation. The fund's holdings include a 12.7% stake in SpaceX, a 1.5% stake in xAI, and a 0.7% stake in X Corp, with a 15% exposure to Musk's non-public companies.

However, investing in startups is considered riskier than public companies, with about 90% failing in the long run. The ARK Venture Fund's relatively small check sizes could also limit retail investors' returns. Despite these risks, Musk's political access could be beneficial for his startups once Trump takes office. Musk's position on the Department of Government Efficiency could also potentially allow him to make significant cuts to government operations.

Key takeaways:

  • ARK Invest is offering retail investors the opportunity to invest in Elon Musk's private startups through its ARK Venture Fund.
  • The fund's holdings include a 12.7% stake in SpaceX, a 1.5% stake in xAI, and a 0.7% in X Corp.
  • Musk's recent involvement in U.S. policy discussions and his relationship with President-elect Donald Trump could potentially benefit his companies and investors in the ARK Venture Fund.
  • Investing in startups is often riskier than speculating on public companies, with about 90% of startups failing over the long run.
View Full Article

Comments (0)

Be the first to comment!