Comments
HothHanSolo t1_iru8eqk wrote
OP, can you please explain what both of those things are?
Skierdude11 t1_irucrrr wrote
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.
cozitburns t1_irudarx wrote
Slow and steady win the race
roadtrip-ne t1_irufmzf wrote
Yeah- but since 2020, BRK.B has been around since 1996. Slow and steady isn’t too much a surprise.
ARKK hit the market at full hype all time high, and went with a bunch of ATH hyped tickers like Zoom and Coinbase
WhistleMeThis_ t1_iruhikk wrote
Wish I could comment gifs on mobile. The Palpatine “Ironic, isn’t it?” seems very fitting here.
WhistleMeThis_ t1_iruhmb9 wrote
I think this tells the story pretty effectively. One might say I got pretty invested..
Gixxer250 t1_irumv4n wrote
Anyone could've made huge gains during the pandemic. I was seeing over 40% returns on my returns.
danceswithtree t1_irun5cx wrote
What about including the S&P500 into the mix?
SciK3 t1_iruncy7 wrote
oh yeah? i was seeing 40% returns on 40% returns on 40% returns on returns!
Gixxer250 t1_iruoagp wrote
Oh wow that's amazing. You must be filthy rich.
OverlookedAlpha OP t1_irup69j wrote
Berkshire Hathaway is Warren Buffett's company that he uses to invest in businesses like Apple, Occidental Petroleum, Coca-Cola etc.
ARKK is fund manager Cathie Wood's Innovation ETF. This ETF invests in a selection of companies that ARK believes are the 'future'. However, the ARKK ETF has been criticised for investing in unprofitable businesses which have tanked since the pandemic.
Opie19 t1_irupl8e wrote
Trains vs Automated Electric Taxis
[deleted] t1_irupp5y wrote
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cyreneok t1_iruv7u1 wrote
close, filthy Rick
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?
bestoboy t1_irv19ug wrote
then your chances of winning drastic go down
theMonkeyTrap t1_irv224v wrote
the thing I dont like about these charts is they are very start and end specific & results can vary greatly for somewhat different intervals. Supposedly you could fix that by using moving averages over say 30 or 60 days but I have almost never seen anybody do it.
Also regarding the comparison itself, IIRC there was a good buffet quote .."In short term markets are voting machine but in long term they behave as weighing machine". definitely applies in this case.
faciepalm t1_irv2kfc wrote
Oh you...
magnetichira t1_irv5tyr wrote
Buy high, sell low - C. Wood
dude_who_could t1_irv5u0r wrote
Now show a 50/50 split reallocated quarterly.
rigid_monkey t1_irv6uqg wrote
It was obvious from start.
HidesInsideYou t1_irvdxbi wrote
The animation adds negative value to trying to understand what you're presenting
JanitorOPplznerf t1_irvgu3w wrote
Not only is it not stable, it appears to have lost everything.
Anyone who timed the market got lucky
[deleted] t1_irvkqjg wrote
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chrissilich t1_irvlmbt wrote
Or just pause at the end for 3 seconds
TheDudeAbidesFarOut t1_irvvd9f wrote
Woods: 5 yEaR tImeLIne.....
Soon to be 10.
TheDudeAbidesFarOut t1_irvvirf wrote
One's a pump n dump. Other is investing. Boring makes money.....
TheDudeAbidesFarOut t1_irvvn7v wrote
One-trick pony....
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.
Wise_Mongoose_3930 t1_irw5ocx wrote
“I’ll measure my returns against anyones; as long as you let me pick the start/end date of the period we measure”
-Warren Buffet (paraphrased)
[deleted] t1_irw8d8o wrote
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grae_n t1_irx286p wrote
From a data story telling perspective, I feel like having a static graph would have ruined hare racing ahead aspect. The animation would have seemed much less dramatic.
wheresmyonesy t1_irxbdb1 wrote
A curve of their own choosing is usually how it goes
OverlookedAlpha OP t1_irxpjqz wrote
Reddit is looping it. Am trying to work out how to put a pause at the end. Cheers.
OverlookedAlpha OP t1_irxpo2n wrote
Perfect summary
[deleted] t1_irxxeg5 wrote
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IMovedYourCheese t1_irxy8bx wrote
Berkshire Hathaway, S&P 500, VTI and most other broad market funds are all very tightly correlated, so this chart is really ARKK vs the overall stock market.
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%
OverlookedAlpha OP t1_iru6gq4 wrote
Source: FMP (financial modelling prep) Visualisation: R