Warren Buffett gets her money’s worth – ARK Invest’s Cathie Wood turns into a stock picker to watch And she’s making huge bets on a number of stocks Buffett doesn’t own and cannot match – even in the financial sector
Three stocks that are the top 10 holdings in ARK Invest’s family of ETFs, including financials Silvergate Capital (SI), healthcare Pacific Biosciences of California (PACB) and communications services firm Sea (SE ), have at least tripled Warren Buffett’s performance best US listed stocks over the past 12 months, according to an investor’s Business Daily analysis of S&P Global Market Intelligence and MarketSmith data
Wood, increasingly dubbed ‘Queen Cathie’ by Reddit traders, turns into the new Oracle exchange Over 30 of the top 45 stocks held in ARK Invest’s five active ETFs in the past 12 months beat the performance of the top US- winner listed in Buffett’s Berkshire Hathaway portfolio: home improvement retailer RH (RH) HR is up 1168% in 12 months
Wood is becoming a household name with investors Hundreds of millions of dollars poured into its family of five ETFs this year ARK now has around $ 60 billion in assets, according to ETFcom
And stocks Wood buys for ETFs, including flagship product ARK Innovation (ARKK), regularly make headlines.Meanwhile, the ETF is up 145% in the past 12 months. Buffett’s Berkshire Hathaway shares are down 43%
It’s also a 12-month period to compare performance, as the past year has put both fund managers through a 2020 peak, a brutal pandemic shock and a powerful recovery.
“I know a lot of people are fascinated by Cathie Wood’s ARK Innovation ETF which I believe will grow by around 250% year on year by the end of the quarter,” said Dan Wiener, editor in chief of “The Independent Adviser For Vanguard Investors”
Two of ARK Invest’s three holdings topped the BuffettS top U – listed stocks belong to the ARK Fintech Innovation ETF (ARKF) In fact, while Wood is famous for his long-standing optimism on Tesla ( TSLA), its best performing stock in the past 12 months is Silvergate Capital, a financial company It has grown over 880% in the past 12 months
And Silvergate, a bank holding company in La Jolla, Calif., is a 4 3% stake in ARK’s financial ETF It is the fourth largest holding in the ETF The value of the ETF ARK Fintech Innovation is up more than 125% in 12 months
Buffett’s best performing financial stock, on the other hand, is credit card company Synchrony (SYF) But it’s just 171% in the past 12 months.Meanwhile, Buffett’s largest financial position, a $ 34 billion stake in Bank of America (BAC), has grown only 23% in 12 months It’s even underperforming the 16 of the S&P 5006% increase during this period
And that doesn’t even mention the sea, which is the no 7 stake in ARK Fintech Innovation ETF at 3 years 5% of portfolio The company powers digital financial services and e-commerce in Asia and Latin America And this also shames all of Buffett’s financial games Sea shares increase by almost 400% in one year
Buffett charges on some healthcare names He added to his positions in healthcare at the end of 2020 Specifically, Berkshire increased his stakes in Merck (MRK) by 28% and AbbVie (ABBV) by 20% But they hardly stand out Merck is down 92% in 12 months, while AbbVie is up 14% Should you buy AbbVie stock now?
In the meantime, watch Pacific Biosciences of California Shares of molecule sequencing equipment maker increase by more than 800% in 12 months Wood to expect big gains in the future that are not yet apparent Wall St analysts believe the company will lose 96 cents per share in 2021, even more than the 62 cents per share it lost in 2020
S&P 500 moves and cyclical stocks rally This could play in Buffett’s hand No of Buffett 1 US- the listed stock that trades a full year is a household goods retailer
Traditional bank stocks are also heating up and bringing value stocks with them Financials is a quarter of Buffett’s public equity portfolio And consumer discretionary stocks are 5%
Meanwhile, some of the expensive stocks are getting colder, like Tesla And Tesla is in the top 10 of three of ARK’s ETFs Invest Tesla fell 3,968 or 51%, to 74,162 on Monday Tesla alone, accounts for nearly 9% of ARK Innovation In contrast, the No of Buffett 1 financial holding company, Bank of America, rose 64 cents on Monday, or 19%, to 3,516 Should you buy Tesla shares now?
But Buffett, too, is heavily exposed to the hottest tech stocks He lightened up on Apple stock (AAPL) last year, but it’s still the No 1 to have in his portfolio by far Technology now accounts for 46% of its portfolio, including winning Snowflake stocks (SNOW), which have yet to trade a full year
And it’s always a bad idea to exclude Buffett He knows how to last decades of market cycles, which ARK Invest has yet to prove
4:16 a.m. ET
Hyliion reports after the close, marking the second time the electric drivetrain maker has released results since going public last fall
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World news – CA – ARK’s Cathie Wood schools Warren Buffett with 3 main shares