Today’s top investors, Warren Buffett and Cathie Wood, are running neck and neck in the post-pandemic performance table.
The Pandemic Seesaw Between Value And Growth Stocks
Cathie Wood’s Ark Invest ETF and Buffett’s Berkshire Hathaway are often seen as prime examples of two very different investment styles — growth and value. Growth investors like Wood seek companies with strong earnings growth, while value investors like Buffett focus on buying durable companies at attractive valuations.
In the decade leading up to the pandemic growth stocks outperformed value stocks. And then when a crisis hit the market in the form of the pandemic, that advantage continued, sending growth stocks higher. But, the last year or so has seen a turning of the tables.
Buffett’s Berkshire Hathaway vs. Cathie Wood’s ARK Innovation Fund
Is this finally the rotation value investors have been waiting for?
The rocky start to 2022 has shaken the stock market, and many on Wall Street are bracing for a continued shift to value. While 2020 saw the Cathie Woods of the investing world take the market by a storm, the last 12 months, continuing into 2022, paint a very different picture.
While this volatility might seem daunting, don’t let it scare you away. With volatility comes opportunity. By using the right tools, you can easily navigate yourself and find stocks that will deliver both growth and value to your portfolio in the years ahead. This is where InvestingPro comes in.
InvestingPro is designed to help you find undervalued stocks for your portfolio, whatever your investing strategy. Here are three specific tools that will help you navigate this shift, whichever direction it goes.
InvestingPro Tools For Building Your Winning Portfolio
- The Stock Screener:
Value investors focus on valuation much more, and one way to sift through the market for the most undervalued stocks quickly is by using the InvestingPro Stock Screener tool.
This tool will deliver alerts based on whether a given stock is undervalued and overvalued – a calculation made on InvestingPro’s professional-level data and dozens of financial models – drawing investors’ attention to key buying and selling opportunities. With the market volatility, this stock screener will ensure you are never left out of the loop.
- Financial Health
Valuation matters, but it’s also important to understand how the underlying company is doing, which is what growth investors focus on. As companies get more complex it’s worth reverting to the fundamentals, to understand what the risk factors and hidden costs are in your investments.
InvestingPro offers a leading financial health tool that assesses your investment portfolio, at any time. Our premium services provide users with rigorous reality checks on your portfolio using proprietary tools and analyses, so you can get a check on both value areas – like profitability, relative value, and cash flow health – and growth metrics – like price momentum and growth health. Make sure that all your stocks pass the test.
- Top Ideas Tool – Learn From The Best
Not sure where you fall on Berkshire Hathaway vs. Ark Invest? InvestingPro offers users a Top Ideas tool that allows you to filter metrics for you to analyze other advisors’ portfolios. Want to know which portfolios have generated more than a 50% return this year? One-click and you have all the information you need right at your fingertips.
You can compare your positions to either Warren Buffett’s Portfolio or Cathie Wood’s Ark Investment Management. See how your portfolio stacks up, and see if you can find new ideas that might be a better fit in your portfolio for the months ahead, whether that’s playing it safe with a margin of safety, Buffett style, or going for companies that will disrupt industries and change the world, Wood style.