Basically, the indexes are backwards looking. The companies at the top in these various indices are there because of what has happened in the last 40 years.

If disruptive innovation is going to be as pervasive as we think it's going to be, most of those companies are going to be sidelined at best.

There's going to be huge consolidation.

They're going to be bankruptcies, restructurings, and so forth.

And so the irony here is the traditional benchmarks may not deliver interesting returns

because of that unless they move much more quickly towards putting

innovative companies in there.

Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

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What's going on guys? It is Friday, October 9th, and today I am so excited to share

with you a conversation with Kathy Wood. Many of you will be familiar with Kathy,

but for those who are not, she is the chief executive officer and the chief investment officer

for Arc Invest. In a recent cover story, Forbes called Kathy Wood the newest superstar

investor, saying that she had, quote,

leveraged a zealous belief in innovation into a $29 billion in assets firm and a $250 million net worth.

In case you need some more statistics, ARC's flagship $8.6 billion ARC innovation fund is up 75% in 2020,

and has returned an annual average of 36% over the last five years, which is nearly triple that of the S&P 500.

ARC is an asset management firm focused solely on innovation, investing in areas from genomics

to cryptocurrency to autonomous vehicles.

They're perhaps best known in the last couple years for their at times highly controversial

...