Skip to main content

Warren Buffett and Cathie Wood Produce Similar Two-Year Returns

Buffett did it with gradual, consistent returns, while Wood saw a major surge followed by a sharp downturn.
  • Author:
  • Publish date:

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) - Get Berkshire Hathaway Inc. Class B Report Buffett invests in tried-and-true blue-chip stocks, such as Apple  (AAPL) - Get Apple Inc. Report and Coca-Cola  (KO) - Get Coca-Cola Company Report

Meanwhile, Ark Investment Management’s Wood invests in speculative, technology stocks, such as Zoom Video Communications  (ZM) - Get Zoom Video Communications, Inc. Class A Report and Teladoc Health  (TDOC) - Get Teladoc Health, Inc. Report.

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) - Get ARK Innovation ETF Report posting a total return of 39%, compared with 35% for Berkshire.

Scroll to Continue

TheStreet Recommends

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) - Get Tesla Inc Report is Ark Innovation’s No. 1 holding, and Teladoc is No. 2. After those come Zoom, Roku  (ROKU) - Get Roku, Inc. Class A Report and Coinbase  (COIN) .

At Berkshire, the Omaha investment group, Apple is No. 1, followed by Bank of America  (BAC) - Get Bank of America Corp Report, Coke and American Express  (AXP) - Get American Express Company Report.