[OC] Warren Buffett's Berkshire Hathaway vs Cathie Wood's ARKK ETF Since 2020 (right click chart to turn off loop)Skierdude11 t1_irucrrr wrote
Reply to comment by HothHanSolo in [OC] Warren Buffett's Berkshire Hathaway vs Cathie Wood's ARKK ETF Since 2020 (right click chart to turn off loop) by OverlookedAlpha
Looks like the return percentages if you bought Berkshire Hathaway stock (grey) and the ARK ETF (red) at the beginning of 2020.
Warren Buffet (Berkshire Hathaway) has a certain investment strategy that he has shown returns slow and steady growth. On the other hand, Cathie Wood (ARK Innovation) has a different strategy that gave her ton of attention mid-pandemic for its super high returns, but is now showing that it isn’t as stable of returns.
danceswithtree t1_irun5cx wrote
What about including the S&P500 into the mix?
notgoodthough t1_iruvk3p wrote
Berkshire Hathaway moves very similar to the S&P 500, but iirc has slightly better returns over multiple decades.
danceswithtree t1_iruxbx4 wrote
I guess that's my point of bringing up the S&P. There are plenty of funds that beat the S&P for any given year. Almost none can do it consistently. That's what made Buffet and Berkshire notable-- the long term performance.
I would imagine that if you plot the distribution of returns for all the funds, it would approach a normal distribution. For the top performers (eg >3 sigma), what is their performance the next year? My gut feeling us that risky investments will increase the variance in returns-- those in the highest returns and highest losses will have risky strategies. So does past performance inform future performance? Maybe? All the commercials for investments want you to think so but explicitly say they don't.
So during the period in question, did Berkshire do better than the S&P?
secoccular t1_iry83lo wrote
Better than slightly better returns. Berkshire Hathaway has an annualized return of 20.1% since 1965. The S&P500 has been 10.5% annualized.
Total BRK return since 1965: 3,641,613%
Total SPX return since 1965: 30,209%
bestoboy t1_irv19ug wrote
then your chances of winning drastic go down
JanitorOPplznerf t1_irvgu3w wrote
Not only is it not stable, it appears to have lost everything.
Anyone who timed the market got lucky
LakeSun t1_irw31e2 wrote
Can you guess when Cathie Woods came under short attack.
You should actually send this to the SEC.
And by short attack, of course, I mean: 'naked short' attack. The preferred method of the short community.
Gixxer250 t1_irumv4n wrote
Anyone could've made huge gains during the pandemic. I was seeing over 40% returns on my returns.
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