Ladies and gentlemen, in this corner at 5'10", and 205 pounds of Coca-Cola and Seize candies
the Oracle of Omaha warn Wildman Buffett. His opponent at 5'6", and 120 pounds of Fightin' Irish, Cathy Can't Stop Me Wood
It's the investing matchup nobody asked for, the Wu-Tang fighting styles of Buffett vs. Wood
And okay, I know some of the shine has come off of Cathy Wood's investments, but be honest
You know you were praying to the lost Ark when it was up almost 250% in a year
I mean, just the Ark K was a $30 billion fund, and total AUM for Ark Invest was over $50 billion at its peak
So even if Cathie Wood is the Spice Girls of investing, the song you all deny of her liking, but you had the volume cranked up on wannabe when it was hot
Tell me what you want, what you really, really want. But the matchup with Buffett's style goes beyond that
We're talking growth investing versus value. What are the differences in investing styles
which is better, and what the future looks like for each. Stick around and I'll reveal my favorite
stocks from each portfolio, the best of Buffett and the best growth for Wood. Best growth for Wood
best growth to that, that's going to get me in trouble. But let's get started with the core differences here How these two legends think about investing because let face it Warren and Kathy couldn be more different if they tried Warren Buffett is the king of value investing He like that uncle who buys used cars but not just any used car one that been cared for by this sweet old lady and has lots of life
left in it. He's looking for companies with solid fundamentals, a long history of profit
and a mode of safety around their business, that competitive edge that keeps the competition out
Kathy Wood, on the other hand, isn't buying used cars. No, Kathy is buying flying cars that
maybe haven't even been built yet. She's all about that disruptive innovation
finding the companies that are going to change the world, ideally pretty soon. It's futuristic
it's daring, and sometimes it's kind of like betting on that friend who swears they're going
to be the next Elon Musk. Put another way, Buffett is investing in mature companies leading their
industries with dependable cash flow and stocks at a reasonable price. He doesn't want to be
surprised. He's just fine with that 10 to 15% annual return if it means he doesn't have to
worry about his investments. Wood, though, she doesn't mind surprises and recognizes
that for those moonshot investments, you've got to take those risks and some of them aren't
going to work out. She's investing in new, innovative companies that could disrupt the
way things are done in their industry to someday become the kind of stocks that Buffett buys
and of course make her insanely rich in the process And again more than talking about Cathie Wood or Warren Buffett here that what we talking about in this video about that growth versus value investing style
which produces higher returns, and which is going to be right for you. I'll show you the best and worst stocks from each investor next
but using either style means keeping up with the news. And for that, I want to personally invite you to get the weekly bowtie
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Now let's look at their finest moments, the shining stock picks that made headlines
First up, Warren Buffett. This man made Coca-Cola more than just a drink
It runs in his veins, and it's one of his biggest wins. Buffett started buying shares of KO in 1988 and adding to it until 1994, investing a total of $1.3 billion for about 400 million shares
It's his fourth largest holding in the Berkshire Hathaway portfolio, almost 9% of total assets
and a control of 9.3% of the Coca-Cola company. In 1994, Berkshire received a dividend of $75 million on its shares of Coca-Cola
That not bad at around a 5 yield on that original billion investment It gets slightly better though By 2023 that annual dividend had grown to million That is a 60 annual dividend on the original investment
On top of the stock value, that is now worth $27.7 billion
I know, you probably expected me to highlight Buffett's investment in Apple, starting just 8 years ago and netting him roughly $76 billion on a recent sale of half his steak
It's a hell of a lot more than he's made in Coke, but Warren has made so many great investments that it's hard to pick just one
For her part, Cathie Wood has been the queen of Tesla. While Wall Street ysts were shaking their heads, Cathie was backing up her electric car to load up on shares of TSLA
buying $1.3 billion worth of it in the fourth quarter of 2016, a split-adjusted price of just $13 a share
Those shares were worth as much as $410 just five years later in 2021 for a 3,150% return
That is doubling your money every year for 5 years. Think about that, even on Buffett's spectacular 19.8% annualized return on shares of Berkshire
Hathaway since 1965, it would take you 19 years to get that 3000 plus percent return
From Coinbase to Roku and Block, Wood proved that it wasn't just the right place at the
right time with some spectacular returns. Before we get to their worst stock picks