Warren Buffett is making money – Cathie Wood of ARK Invest turns into the stock voter to watch. And she makes big bets on a number of stocks that Buffett does not own, and not even in the financial sector.
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Three stocks containing the top 10 stocks in the ETF family, including financial Silvergate Capital (SI), healthcare Pacific Biosciences of California (PACB) and communications services company Sea (SE), has at least tripled the yield of Warren Buffett’s best U.S. listed stock over the past twelve months, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
Wood, increasingly called ‘Queen’ Cathie by Reddit traders, is changing into the new stock market Oracle. More than 30 of the 45 top-10 stocks in ARK Invest’s five active ETFs over the past 12 months beat the performance of the top-rated US profit in Buffett’s Berkshire Hathaway portfolio: home improvement retailer RH (RH). RH is 116.8% higher in 12 months.
Warren Buffett: Make room for a new oracle
Wood is becoming a household name among investors. Hundreds of millions of dollars have poured into her family of five ETFs this year. ARK now has about $ 60 billion in assets, says ETF.com.
And stocks Wood buys for ETFs, including the flagship ARK Innovation (ARKK), are rising regularly across the news. Meanwhile, the ETF has risen 145% over the past 12 months. Shares of Buffett’s Berkshire Hathaway are down 4.3%.
It is also a striking twelve months to compare performance, as in the past year both money managers have experienced a 2020 high, a brutal pandemic shock and a strong recovery.
“I know a lot of people are fascinated by Cathie Wood’s ARK Innovation ETF, which I think will grow by about 250% over the quarter by one year,” said Dan Wiener, editor of The Independent Adviser For Vanguard Investors.
Cathie Wood showing Buffett The Future Of Financials
It’s surprising that Wood is apparently going to teach Buffett in his traditional favorite sector: Financials.
Two of the three ARK Invest shares that top the Buffett’s top-listed stock in America are in the ARK Fintech Innovation ETF (ARKF). In fact, while Wood is known for her long-standing stubbornness Tesla (TSLA), its best-performing stock over the past 12 months is Silvergate Capital, a financial. It has risen by more than 880% in the last twelve months.
And Silvergate, a banking holding company in La Jolla, California, is a 4.3% stake in the ARK’s financial ETF. This is the fourth largest stock in the ETF. The value of the ARK Fintech Innovation ETF is more than 125% higher in 12 months.
Buffett’s financial performance, on the other hand, is a credit card company Sync (SYF). But it has risen by just 17.1% over the past 12 months. Meanwhile, Buffett’s largest financial position, a $ 34 billion stake, Bank of America (BAC), is only 2.3% higher within 12 months. This is even less good than the S&P 500 increase of 16.6% in that time.
And it is not even mention of Sea, which the no. 7-share in the ARK Fintech Innovation ETF is at 3.5% of the portfolio. The company has digital financial services and e-commerce in Asia and Latin America. And it also shames all of Buffett’s financial plays. Sea shares rose by almost 400% within a year.
Buffett Can’t Match Wood’s Health Winner
Buffett is uploading some health care names. He added his positions in healthcare at the end of 2020. Berkshire in particular increased its holdings Merck (HRC) by 28% and AbbVie (ABBV) by 20%. But they are hardly outstanding. Merck fell 9.2% in 12 months, while AbbVie rose 14%. Should you buy AbbVie shares now?
In the meantime, take a look at Pacific Biosciences of California. The share of the manufacturer of molecular sequencing equipment is more than 800% higher within 12 months. Wood should expect huge profits in the future that analysts have yet to see. Wall St. analysts believe the company will lose 96 cents a share in 2021, even more than the 62 cents a share it lost in 2020.
Buffett Vs. Wood: Who will win in the future?
However, never count on Buffett.
The S&P 500 shifts and cyclical stocks increase. It could play into Buffett’s hand. Buffett see no. 1 US full-year listed stock is a retailer of household products.
Traditional bank shares are also heated and bring value shares. Finance accounts for a quarter of Buffett’s public portfolio. The consumers’ discretionary shares form 5%.
Meanwhile, some of the sweetest stocks are cooling off, like Tesla. And Tesla is a top 10 stock in three of ARK Invest’s ETFs. Tesla fell 39.68, or 5.1%, to 741.62 on Monday. Tesla, alone, accounts for nearly 9% of ARK Innovation. In contrast, Buffett’s financial position, no. 1, Bank of America, rose 64 cents or 1.9% to 35.16 on Monday. Do you need to buy Tesla shares now?
But Buffett is also heavily exposed to hot technology stocks. He lights up appeal (AAPL)’s share last year, but it is still by far the number one in its portfolio. Technology is now up to 46% of its portfolio, including winning shares of snowflake (SNOW), which has not traded a full year yet.
And it’s always a bad idea to exclude Buffett. He knows how to keep up with decades of market cycles, which ARK Invest has yet to prove.
ARK Invest shares perform best
The most profitable among the top ten investments in ARK’s five active ETFs over the past twelve months
| Company | Symbol | Top 10 holdings in ARK ETF | 12 months% Ch. | Sector |
|---|---|---|---|---|
| Silvergate Capital | (SI) | (ARKF) | 878.4% | Finance |
| Pacific Biosciences of California | (PACB) | (ARKG) | 793.6% | Health care |
| Sea Limited | (SAY) | (ARKF) | 387.9% | Communication services |
| Grayscale Bitcoin Trust | (GBTC) | (ARKW) | 326.8% | Finance |
| Twist Bioscience | (TWST) | (ARKG) | 315.2% | Health care |
Sources: ARK, S&P Global Market Intelligence, ARKF = Fintech Innovation, ARKG = Genomic Revolution, ARKW = Next Generation
Follow Matt Krantz on Twitter @mattkrantz