Cathie Wood LASHES Out against Ross Gerber

but if they were an issue they were an

issue back then and you shouldn't have

voted for it how do you I don't want to

tell you all my trump stories fairness

fairness what's unfair I don't care

about surveys I think surveys are

extremely misleading that's a terrible

answer that's why I got invalidated I I

disagree I think I need a shot at

tequila one one last thing but the

majority of the board's supposed to be

independent and it's not I think this is

unamerican I really

do you're going to want to sit down for

this one because this confrontation is

real there is tension in the air but the

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demand Che I'm going to try to mediate

this here I'm going to start with

Kathy he he didn't want to vote for that

Compensation Plan no that's true I voted

for the compensation plan in 2018 it's

he he he says that uh he doesn't like uh

paying the richest man in the world more

money what's your

response that's a terrible

answer no I I'm saying I'm saying this

man committed and you voted for it to

working for free no no base salary no

bonus no stock Kathy owned 20% of the

company so what he he said here I'm

going to lay out this plan and if I

achieve this from an operational point

of view this is the compensation package

and I'll tell you what we thought this

was back in 18 because we had just

published our first uh Tesla Model and I

remember saying to our analyst I said

he's using our model he thinks we're

right he thinks we're right I mean of

course you know it's all about us no I

didn't mean that but he's using our

model he really thinks this is possible

when no no one thinks this is possible

out there and we had him accomplishing

those goals in 5 years he did them in

three years and now you're going to tell

him

no I I didn't tell him no at all in fact

it was Judge McCormick that invalidated

the pay package because judges are now

in charge of corporate compensation no

it's not about corporate compensation

Kathy and I think that's the

misperception it's about corporate

governance and Tesla has a a board that

is not independent and it is required by

the NASDAQ and Delaware to have an

independent board and what the judge had

said was that the package was not

negotiated fairly with the board see the

issue I had and why I voted against it

was I thought it would be much more

productive for them to do a new pay

package than to regurgitate the old one

that was shot down they could not if you

ISS said the same thing why didn't they

cut the Kate pay cat you couldn't do

that legally in this well you can

retroactively like add conversation

beside the point I wouldn't I I

shouldn't even have have uh have um

countenance the point because I just

don't agree with it he did

it we've voted once again the

shareholders have

voted and I don't think court and and we

voted knowing full well all the con

governance issues you think were an

issue but if they were an issue they

were an issue back then and you

shouldn't have voted for it no I don't

it's not what I think it's what the

judge in Delaware thinks and that's why

I got it validated oh my goodness so

what's happened now is it's going back

to the judge in Delaware and just

because we revoted for it again doesn't

necessarily make it valid either so that

was the problem is that we're still

dealing with this you know what's been

great about this whole time Andrew Ross

sorin on CNBC and we used to to be on

the other side of Tesla regularly he is

with us on this uh I think this is

unamerican I really

do what's on American to let judges use

some

esoteric s so fairness fairness what's

unfair about a stock moving from I I

don't even know what on the split basis

$20 to

417 you know what's unfair about you're

you're not talking about why this

happened this happened because elon's

brother is on the board of directors and

voted then and you knew it but what what

I'm saying is that he never went through

the process that's required by law to do

these things correctly why is it so hard

to do them correctly I disagree with you

on that too it's not disagree that's why

I got invalidated I I disagree I think I

need a shot at tequila one one last

thing one last thing one last thing I

I'll have some tequila around the whole

2018 funding

secured

drama after that they elevated Robin

denholm whom I have known for years she

was at Sun microsystem she was at uh

Juniper I've known her very well she's

from Australia she suffers no fools and

she and Elon she is truly independent

they made her the chair after that they

didn't SEC did so she was made the chair

right so next what does that tell you

about

governance that the SEC forced Tesla to

have an independent chair because they

forced El off the board but the majority

of the board's supposed to be

independent and it's not and that hasn't

been rectified and that's what I'm

saying Tesla needs to focus on selling

cars that's their job the fact that this

is the main ation around Tesla is a

failure in selling cars and that's what

we have to deal with next week when they

report their numbers is what are the

numbers at Tesla and so this is all just

conjecture either way and it's a big

waste of time if they would have gone

through things correct I think it's a

big waste in time I I do not think that

that the courts I don't think the courts

should be I don't think the courts

should be determining corporate comp

compensation just do not so now we're

going to go to another thing that you

both agree on you say the economy is

great you say the middle class and lower

class is suffering and the FED has gone

too far you did acknowledge there was a

risk the FED can go too far Ross has

mentioned that he had trouble booking a

hotel because the econom is so well here

doing so well here well just go outside

here and and and you're saying that

we're seeing price Cuts we're seeing

unit volumes go down we're seeing a

decline in in in visitation you know

customer showing up let's start uh since

I started with you Kathy I'm going to

start with you

Ross What can you say to Kathy's

argument that the middle class and lower

class is suffering today the Rio is sold

out

Kathy this conference might have

something to do with that it still costs

money and if you walk around here and

these are not the wealthiest people

normal people and they're spending lot

of money look I'm looking at macro

indicators it's what we do uh just to

understand the backr drop and they are

looking worse and worse with time 3.6%

saving rate you go back to 08 see that

saving rate when people get worried that

they're going to lose their jobs and and

today it's not just lower income or

middle income some of these tech jobs uh

people are losing tech jobs because of

AI um when they get worried the saving

rate goes up it's human nature I've got

to like I can't spend as much I need

just in case I lose my job and I think

if if you look in the University of

Michigan uh I think this was the survey

sentiment index I think 70% of people

making more than

$100,000 are afraid of losing their jobs

it's skyrocketing here and I do think

technology has something to do with it

yeah and and I agree I think higher

income job Seekers are seeing a lot less

opportunity than lower and middle class

income uh Seekers at this moment and a

lot of that has to do with the lack of

hiring and many of the major companies

they've stopped hiring but this is a

manufacturing of the fed this is exactly

what the FED wants the FED wants

unemployment to go up they want job

security to go insecurity to go up so

that employers have a more of a balance

with wages and such so this was the goal

of the current policy to create those

indicators the question is can they

manage this in a way that doesn't cause

a recession and that I I think many

people including yourself thought that

we would have already been in a horrible

recession right now well housing is

Autos are in a funk I think whatever

Tesla reports eom instant rate interest

rate sensitive office Comm office

multifam and now we're hitting the

consumer I mean that's pretty and

capital spending as well pretty

broad-based on um a third topic so I

think we can agree that the FED needs to

low our rates they definitely do oh so

there's agreement there we

go on uh

on on a on another thing that uh we all

agree on uh well well you two agree

on you just announced that you're going

to be voting for Donald

Trump oh I'm not supposed to be

announcing anything all I'm

saying was best for the

economy that you know econom on

economics he

definitely is the best you're going to

vote for who would do best for the

economy that's who I tend to vote for my

compliance Department tells me I can't

say who I'm going to vote for so you're

voting for Trump no I would never vote

for Trump but that that has more to do

with morality than anything else not

from an economic point of view I I just

how do you I don't want to tell you all

my trump stories how about this I have

actual stories since this is about money

and economics um I grew up in The

Apprentice

era so did stormmy

Daniels once again I don't want to get

into stories that I know about so uh but

he's not my candidate how about for the

economy I think for the economy I think

Joe Biden's you know one of the most

regressive economic policies that I've

seen in a long time whether it's FDC

what you brought up um whether it's this

ridiculous support for unions at the

expense of Corporations uh or even

sanity um he's created a very difficult

environment for businesses um which

despite that we're having a strong

economy and and not recession even with

high interest rates I don't think

there's any doubt that Trump you know

and his focus on business and the

economy is is a is better for business

and certainly better for the wealthy are

are are are you listening to company

reports when they report earnings yes

other than the me six there's a lot of

pain out there there are companies that

are very economically sensitive if you

look at UPS revenues they've been down

single down not growth rate lower but

revenues actually falling uh 3M uh we've

got China exporting deflation I I think

company China's got a lot of issues

company reports and we have exposure to

China Europe has exposure to China um I

think company reports uh

defy um the the the the thought that

this economy is doing well it's just not

I mean I think once again you're talking

about a lot of indicators that are

indicative of the future of where the

economy is heading which is no question

slowing no I'm talking about now you

know I I mean I just I just the world I

live in I can't get a reservation

anywhere everything's booked there the

biggest travel Fourth of July in the

history of humans is coming up so people

are traveling and they're spending money

um I invest in the MGM hotels here the

numbers are 97% occupancy rates with

highest room rates in history uh the

debt at the sphere is sold out every

night 6 million a night the debt is

making they have to keep narrow slice no

no Vegas is America everybody in Vegas

comes from around the the country um you

have all strata of people that come here

from every income and economic level

every race every every background and

every country it it's the most it's one

of the most diverse places on Earth if

you just walk out here it's incredible

the diversity why why according to the

University of Michigan are consumers so

miserable like I don't care about

surveys I think surveys are extremely

misleading because when people fill out

surveys there's biases that are inherent

when you fill something out and I think

you have to look at many indicators and

and we use a lot of realworld indicators

I spend a lot less time on data okay

well you should spend more time on data

well the problem is all the data is

hindsight data has to be collected and

it's old

so by the time you read it it's been

collected and it's now hindsight so what

we're really trying to say is what's

happening moving forward and and the way

we do that is by looking at things like

what people are actually doing tonight

so I do that every quarterly report

season I'm on lots of company calls just

to learn more about the economy even if

we're not invested in them they're not

doing well except for the exalted few I

think I think as we discussed earlier I

think a lot of small companies are under

a lot more financial pressure than mid

and large-sized companies but I run a

company that's growing and doing

phenomenally well and we work with lots

of small businesses that are doing

great okay um moving on to another

one dell no

Dell are you a value investor no not

necessarily I I'm a growth investor this

is innovation I've never been all a

value investor but I'll take that as a

compliment if you I'm going to go tell

the people in my firm that you call me a

value investor well I often say if you

give us five years we're a deep value

manager what do you say to that I think

value there's intrinsic value the way

Kathy season and and she could be 100%

correct I I think several of her stocks

we own and and have tremendous

opportunities and I think the way Kathy

looks at the world is very uh Innovative

and very futuristic and I think there's

a lot of opportunity when you think that

way I I think a lot of investors spend

too much time looking at numbers and PE

ratios and not enough time thinking

about the future which is what I think

Arc does very well um and and your team

is is it is the team the team is yeah

your team is great and and we've dealt

with you guys for many years um so I I

think that markets are difficult for

everybody and the way markets value

different Investments at different times

varies and so I think um in 20 and 21

there was a lot more premium being paid

for growth than we're seeing today um

even Nvidia trades at 35 forward

multiple which I don't consider a crazy

number um unless there's a cyclical down

unless something changes right um no and

that happens with chip companies and we

all know that so I I I think what I try

to do that might be different than you

is we look for the companies that have

the growth rate at the lowest cost for

that growth where a company like Dell

with a very low forward PE and a very

high potential growth rate into the next

five years is very attractive to us like

a dell and an Oracle um for example um

but we also own asml um Tesla um Nvidia

Microsoft which also have higher

valuations very well so now what we're

going to do is uh we're going to open up

to some questions from you all I

actually think it would be great if we

had both of you here we've got about 10

minutes or so and uh who has a question

please come up to the

microphone Mr Ros

Mr gber I'm sorry that's okay I was had

a question I was wondering if either of

you were familiar with a new book by

Robert Burl called Chad gbt MD and

regarding AI implementation in medical

services I I can talk about I I haven't

read the book maybe our analyst has uh

the in drug Discovery CH uh chat

gbt uh

is is

creating tremendous opportunities we're

learning things that human beings just

hadn't even thought of before and so

it's kind of shaking up that world which

is very exciting we think that uh the

well AI we think is going to um shorten

the time between you know Discovery and

development and you so trials fewer

failures so

we think that and the reason we keep

loading up on these multiomic names is

the convergence between DNA sequencing

which I described earlier artificial

intelligence and some of these new

therapies like crisper Gene editing um

are are going to create an explosion in

New therapies you know and and actual

cures so what what companies do you like

the most in this area in in and Ai and

medicine and and like all of them are

harnessing AI they have to be right yeah

I mean for sure especially genetic

companies where you have so much data

right so yeah our largest holding is uh

crisper Therapeutics crisper y twist

biosciences in more the synthetic

biology space um in Talia which is also

in uh the the gene editing space those

are three important ones but have you

read the book yeah it was very good book

it was a little more focused on Chad gbt

assisting doctors in providing Services

directly to patients that makes sense oh

well our our chief futurist Brett Winton

just he half of his face was just almost

destroyed by in a soccer accident and uh

fractured six bones and everything and

he said he learned more about his

condition and what to expect when by

Consulting chat gbt than he did from the

medical uh you know anyone taking care

of him medically so I I I think it is

going that's what I love I I mentioned

earlier young people they're going to be

doing this kind of research um I think

there's huge opportunity in healthcare

with AI like of talking about a group of

people that has data all over the place

that isn't connected where there's so

much information and so many treatments

and then you have doctors who

fundamentally are not good at technology

and so my doctor still uses paper files

and I like what are you doing buddy you

know he's like when am I supposed to

change this and I'm like one day you

just got to do it you know um so I I

think that's probably one of the

greatest opportunities for investors

right now is how will healthcare because

the demand for healthcare that is not

changing and that's getting heavier and

heavier as as my parents and our parents

go get older and older and it's almost

like there's this backup in the hospital

for so much services and so I think

that's one of the greatest opportunities

for investors how do we Implement Tech

it is you know it's an interesting area

of investing too because Tech investors

don't love Healthcare VCS they don't

like healthare there's regulation

there's reimbursement there's all kinds

of their privacy there's all kinds of

friction and

Healthcare uh investors haven't been

crazy about technology because they like

to move fast and break things

and so you know watching for the

companies that are going to bring these

two things together I think is going to

be one of the most exciting um

opportunities we're going to find out

there yeah that's one of the reasons I

like Oracle because they own Cerner and

they have all this expertise with AI and

data and so they've got the data there

too and what what happened with the face

accident that sounds terrible ter is he

okay yeah he's fine he's fine now he's

still having trouble chewing but tell

best yeah it's there's almost a therapy

aspect to that though being able to get

your answers and comfort from it so uh a

lot better than searching too remember

when youd search abely You' find all

these horrific scary stories and it was

like the the person who's arm fell off

by accident they're like you know why

did I search this this did not make me

feel better and you have a totally

opposite reaction when you start using

chat there's some like intelligence

behind what it's sending you yeah I mean

we we had a you know one of the rets

almost died uh when when she was born in

an emergency C-section and uh she had a

blockage in her intestine which leaked

out and caused to basically swell up and

and could have gone septic any second uh

and uh we went through this this uh

she's alive and well now but we went

through this this mental uh anguish and

Trauma for just I frankly uh two months

until she was done with her three

surgeries wow and we were on uh and

utilizing GPT on a daily basis because

doctors were telling us a child that

presents with mcon ilas is going to have

cystic fibrosis she'll be cystic

fibrosis the rest of her life and we

said how is that possible we were

genetically tested we don't have CF

doctors no no no no children don't

present with this without CF and so

we're using GPT to find studies and

research about children who can actually

present without cystic fibrosis and that

we had uh these tests and the comfort

that gave us for the 6 weeks or or8

weeks that we're waiting was uh crucial

just for our sanity because the the fear

and and just the tears and the emotion

it still makes me emotional thinking

about it uh while at the same time I

have doctors telling me to our face oh

no she's going to have CF that's crazy

they were wrong they were wrong I I mean

once again I think there's so much

opportunity to improve our Health Care

system with this yeah I think many

people are just the last thing yeah um I

used to make this

analogy you know the the Mad Men Days

1960s with advertising uh you know the

Kevin was born in the 90s

stop the um the saying back then was I

know that half of my advertising works I

just don't know which half and now and

now we can I think it was it's worse in

healthcare I honestly think and it's not

the fault of do doctors um necessarily

they didn't have the science or

knowledge because we couldn't sequence

The genome it was prohibitively

expensive now we have the knowledge and

we're going I think we waste more than

half of our healthc care dollars because

our society is so

litigious uh and doctors fear being sued

so too many surgeries too much medicine

and I think that's going to change

radically and we're going to take more

of healthcare into our own hands and I'm

going to give there's a lot there's a

lot of shady stuff too like my my kid

had his ankle looked at and they charged

20,000 for the X-ray and it charged us

50 bucks but when I looked at the bill

thing I said the doctor charged

20,000 and we said why did you build

this and they're like oh let me check

and we're like What so I I love this

story because art laugher convinced then

president Trump to push through this

transparency in hospital pricing they

are now forced to put down what

everything costs and people like you are

saying what the heck what happened what

exactly and and it's craziness because

literally it was an extra there was

nothing even wrong with them um and and

I think this transparency so I I tell my

wife when she goes to the doctor to ask

how much something costs if you really

want to see a doctor look uncomfortable

is before he does something you say how

much does this cost and then they don't

know actually which is crazy did I did I

read right that uh my designer doesn't

know how much things cost either that

Trump might consider art laugher for the

FED but he would never do it first of

all he's 83 years old going to be 84 hey

that doesn't stop anybody

it no no no young that's Young no no

what he what he wants to use the rest of

his

life for is to go to countries like

including our own to the extent anyone

will listen but going and helping them

change the lots of people's lives and he

also said he he was a member of the he

was a paid member of the government in

the early 70s which was a disaster

that's when we went into wage price

controls we went off the gold when dony

said I'm never doing that again I'm

never going to be a paid government

employee because I want to be able to

say what I think 100% love that great

great question all right let's go to the

next one I got to run I please take off

thank you I wanted to stay in in know as

long as I so I guess we're not having

I'm sorry I'm sorry next time maybe we

should be more organized but that a me

me it's me okay bye Ross thank you Ross

bye

Ross why not advertise these things that

you told us here I feel like nobody else

knows about this well we'll try a little

advertising and see how it goes

congratulations man you have done so

much people love you people look up to

you Kevin P there financial analyst and

YouTuber meet Kevin always great to get

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