Warren Buffett and Cathie Wood are as different as night and day. Buffett focuses on buying stakes in wonderful companies at fair prices. Wood bets on disruptive innovators.
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5 Stocks Both Warren Buffett and Cathie Wood Own in 2023
If we created a Venn diagram of the stocks in these two famous investors’ portfolios, there wouldn’t be much overlap. However, that doesn’t mean there isn’t any overlap at all. Here are five stocks both Buffett and Wood own in 2023.
Buffett’s Berkshire Hathaway owns nearly 10.7 million shares of Amazon (NASDAQ: AMZN). Technically, one of Berkshire’s two investment managers — either Todd Combs or Ted Weschler — actually made the decision to buy the stock. However, Buffett has expressed regret for not investing in Amazon himself earlier.
You might think that Amazon would be in one of Wood’s Ark exchange-traded funds focused on top overall technology innovators or next-generation internet. Nope. Only her Ark Space Exploration and Innovation ETF holds a position in Amazon. While Amazon is best known for its e-commerce and cloud hosting businesses, its Project Kuiper plans to offer internet services via satellites.
Buffett has sold a big chunk of Berkshire Hathaway’s stake in BYD (OTC: BYDD.F) (OTC: BYDDY). However, the conglomerate still owns 11.9% of the Chinese electric vehicle maker.
Wood’s Ark Autonomous Technology & Robotics ETF also holds a sizable position in BYD. Like Buffett, though, she has sold some shares of the EV maker since the second half of 2022.
3. General Motors
Berkshire Hathaway currently owns close to 3.6% of General Motors (NYSE: GM). That makes it one of the top institutional investors in the U.S. auto giant.
Meanwhile, Wood owns a much smaller position in GM. It’s the 21st-largest holding in her Ark Autonomous Technology & Robotics ETF, ranking three spots behind BYD.
4. Nu Holdings
You might be surprised to find a fintech stock in Buffett’s portfolio, especially one that operates in Latin America. However, Nu Holdings (NYSE: NU) is definitely among his holdings. Berkshire Hathaway owns 2.3% of the Brazil-based digital banking provider.
Two of Wood’s ETFs have positions in Nu Holdings. The stock is the 19th-biggest position in the Ark Fintech Innovation ETF. It’s also the smallest holding in the Ark Next Generation Internet ETF.
Wait, Buffett owns two Latin American fintech stocks? Yep. In addition to its position in Nu Holdings, Berkshire Hathaway owns 3.4% of StoneCo (NASDAQ: STNE). The company provides financial technology solutions for small to medium-sized businesses in Brazil.
StoneCo is also the 15th-largest holding in Wood’s Ark Fintech Innovation ETF. Wood hasn’t bought or sold any shares of the fintech company in a while, though. Her last purchase of the stock was made in June 2022.
Should you own them, too?
The EV market has tremendous growth opportunities, which is no doubt why Buffett and Wood chose to take stakes in BYD and GM. However, competition in that market will also intensify. U.S. investors also have to be aware of the geopolitical risks associated with China if they buy shares of BYD. Still, some investors might find the growth prospects for both stocks and GM’s valuation too attractive to ignore.
There’s a similar story with the Latin American fintech market. Both Nu and StoneCo should be able to deliver strong growth over the next decade and beyond. The main knock against both companies, for now, is that they’re not consistently profitable. That alone could be enough to scare some investors away.
In my view, Amazon is the best pick of the group. The company still has major growth opportunities in e-commerce and cloud hosting. It also continues to expand into new markets such as advertising and healthcare. Amazon is arguably the best Buffett stock to buy in February — and it could be the best Wood stock to buy right now, too.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon.com and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, BYD, Berkshire Hathaway, and StoneCo. The Motley Fool has a disclosure policy.