If you’re looking for a pair of star investors with diametrically opposed investment philosophies, Warren Buffett and Cathie Wood fit the bill.
Berkshire Hathaway’s (BRK.B) Buffett invests in tried-and-true blue-chip stocks, such as Apple (AAPL) and Coca-Cola (KO).
Meanwhile, Ark Investment Management’s Wood invests in speculative, technology stocks, such as Zoom Video Communications (ZM) and Teladoc Health (TDOC).
But as Bloomberg points out, the two heavyweight investors have produced similar performance over the past two years, with the flagship Ark Innovation ETF (ARKK) posting a total return of 39%, compared with 35% for Berkshire.
To be sure, the paths to those returns have been quite different. Ark Innovation soared 157% in 2020, as Wood’s disruptive tech stocks were in vogue. But last year, the fund dropped 23%, as tech stocks corrected amid rising interest rates. And it has slid another 24% so far this year.
Berkshire Hathaway, on the other hand, has experienced much milder moves, with steady, moderate gains. Its share price rose about 15% in 2020 and about 29% in 2021. It has gained 2% so far this year. Berkshire has benefited from the market’s shift to a focus on value investing from its previous obsession with growth.
Tesla (TSLA) is Ark Innovation’s No. 1 holding, and Teladoc is No. 2. After those come Zoom, Roku (ROKU) and Coinbase (COIN) .
At Berkshire, the Omaha investment group, Apple is No. 1, followed by Bank of America (BAC), Coke and American Express (AXP).
