Here are Cathie Wood Warren Buffett's 4 favorite stocks — and 1 is a total no-brainer buy right now
Cathie Wood's Ark Invest funds own nearly 130 stocks. Warren Buffett's Berkshire Hathaway (NYSE: BRK.A ) (NYSE: BRK.B ) owns over 50 stocks. There is very little overlap between the two portfolios.However, Wood seems to share the same mindset as Buffett in several cases. Here are her four favorite Buffett stocks — and one that's a total no-brainer right now.
Nu Holdings (NYSE: NU) operates one of the largest digital banking platforms in the world. It started in Brazil in 2013 and has since spread to Colombia and Mexico.Not surprisingly, Wood included Nu in the portfolio of its Ark Fintech Innovation ETF. Its Ark Next Generation Internet ETF also owns shares of fintech stocks.
However, Buffett's stake in Nu is somewhat unexpected. The legendary investor typically avoids stocks with such high valuations as Latin American stocks. It seems likely that one of Berkshire's two investment managers — Todd Combs or Ted Weschler — applied to buy Nu.
BYD (OTC: BYDD.F) (OTC: BYDDY) is a Chinese manufacturing conglomerate. Its activities include electronics, rail transport and renewable energy. But the main draw for Wood and Buffett is BYD's electric vehicle (EV) operation.
Wood has long been a vocal supporter of electric vehicles. BYD is one of several EV stocks in the portfolio of its ETF, the Ark Autonomous Technology & Robotics ETF.Berkshire Hathaway owns 9% of BYD and has held an even larger stake in the past. Charlie Munger brought the Chinese EV maker to Buffett's attention years ago. General Motors
General Motors (NYSE: GM ) is one of the "Big Three" American automakers. In every year but one since 1931, GM has sold the most cars in the US.Why does Wood like GM? The company will start production of electric cars and invest heavily in self-driving car technology. As a result, the stock is owned by the Ark Autonomous Technology Robotics ETF.
Buffett may have had the same considerations in mind when he added GM to the Berkshire portfolio. However, I suspect the award was his main factor. Shares remain dirt cheap, with shares trading at just 4.8 times forward earnings.
Amazon (NASDAQ: AMZN ) reigns supreme in two major markets. It is best known as an e-commerce giant. Amazon Web Services (AWS) also claims the largest share of the cloud services market.You might think that Amazon would be a good choice for several of Wood's ETFs.
However, only one of them has a position in Amazon: the Ark Space Exploration and Innovation ETF. It invested in Amazon because of the company's plans to deploy a satellite network that provides Internet access.Buffett didn't personally make the decision for Berkshire to buy Amazon stock a few years ago. However, he called himself an "idiot" for not buying the stock sooner.
A discreet purchase
I think one of Wood's favorite Buffett stocks is a complete no-brainer right now - Amazon. There are other investors who are also extremely bullish on the stock. For example, Redburn analyst Alex Haiss believes Amazon could rise another 65%.
What's behind the excitement about Amazon? Most importantly, the company's AWS cloud unit should have a massive growth trajectory. The explosion of interest in generative AI is likely to lead to significant demand for AWS cloud services.
I also expect Amazon's earnings and free cash flow to increase significantly over the next few years. The company is probably more focused on its bottom line than it has ever been. Amazon has streamlined its operations and cut staff.
AWS's faster growth should also help boost profitability through higher profit margins. Wood seems to prefer Nu, BYD and GM to Amazon. At least its Ark Invest ETF owns larger stakes in three other stocks. However, I suspect Amazon might be the stock Buffett loves most over the long term.
When our team of analysts has a stock tip, it can pay to listen. After all, the newsletter they've been running for over a decade, the Motley Fool Stock Advisor, has tripled the market.*They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right - he thinks these 10 stocks are an even better buy.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is on the board of The Motley Fool. Keith Speights has positions in Amazon.com and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, BYD and Berkshire Hathaway. The Motley Fool recommends General Motors and recommends the following options: $25 long January calls on General Motors. The Motley Fool has a
Cathie Wood, renowned investor and founder of ARK Invest, has gained significant attention for her bold investment strategies and impressive results. It's no surprise that investors around the world are watching her moves closely. Interestingly, among her diverse portfolio are four Warren Buffett stocks that caught her eye. In this article, we'll dive into those four picks and identify one stock that looks like a totally no-brainer buy right now. Let's explore the synergy between the investment philosophies of two of the most influential minds in finance.
One of the key holdings in Cathie Wood's ARK Innovation ETF (ARKK) is Apple Inc. and it's also a stock that has long been in Warren Buffett's Berkshire Hathaway portfolio. Consistent innovation, strong finances and global brand recognition make it a compelling choice for both Wood and Buffett. With a focus on disruptive technologies, Cathie Wood recognizes the potential for Apple to continue to grow, making it a suitable keyword stock for investors interested in technology and innovation.
Amazon is another stock that finds a place in the portfolio of Cathie Wood and Warren Buffett. Known for its e-commerce dominance and expanding cloud services, Amazon embodies the future of retail and digital infrastructure. The company's ability to adapt, innovate and scale aligns with Wood's investment philosophy, which revolves around disruptive technology trends. Investors looking for e-commerce giants and future market leaders will find Amazon a relevant keyword in line with both Wood and Buffett's preferences.
Alphabet, the parent company of Google, is another stock that has received endorsements from both Cathie Wood and Warren Buffett. Google's dominance in online search, digital advertising, and its activities in artificial intelligence and cloud computing place it at the forefront of technological innovation. Given Cathie Wood's emphasis on long-term growth and disruptive potential, Alphabet's diverse business lines align with her investment strategy. Buffett's appreciation for sustained competitive advantage also makes Alphabet an interesting addition to his portfolio, making it a buzzword for investors.
Cathie Wood has shown a strong interest in streaming services and digital entertainment. This is reflected in its investments, with Netflix being a notable position in its portfolio. While Warren Buffett doesn't typically invest in tech stocks, Netflix's dominance in the streaming space and its ability to create compelling original content caught Wood's attention. With the continued shift towards digital entertainment and the rise of streaming platforms, Netflix is becoming a relevant keyword for investors tracking the media and entertainment sector.
Among Warren Buffett's four favorite stocks, Apple Inc. stands out. (AAPL) as an absolute buy right now. The company's strong financial position, consistent innovation and global brand recognition create a compelling investment opportunity. In addition, Apple's commitment to sustainability and its renewable energy initiatives align with Cathie Wood's ESG (Environmental, Social, and Governance) considerations. With the potential for further growth, Apple is emerging as a keyword-worthy stock for investors looking for stability, innovation and a sustainable approach.
The convergence of investment interests between Cathie Wood and Warren Buffett underscores the importance of the stocks they both hold. Apple, Amazon, Alphabet and Netflix represent key players in the technology and entertainment sectors, with Apple emerging as a surprise buy. Whether you're interested in disruptive innovation or looking for stable, established companies, these stocks offer valuable keyword opportunities for investors who align with Wood's forward-thinking approach and Buffett's emphasis on sustained competitive advantage.
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