Two roads diverged in the wood


On Saturday famed omnipotent "Oracle of Omaha," Warren Buffet issued his company's much awaited annual report. The messiah came through as usual schooling the masses on how to make money in the market hand over fist with pithy observations while his company Berkshire Hathaway (BRK.W) reported a 90% decline in profits: 

"For the full year, Berkshire earned just $4.0 billion in GAAP profits, down 90% from $45 billion the previous year, prompting the WSJ to describe this as "one of Buffett's worst years ever."

Cathie Wood, who you probably never heard of, is no Buffet. She is CEO and founder of of Ark Invest, an investment advisory that advocates investment in transformational technologies with publicly traded ETF's and mutual funds investing not in the Heinz catchups of the world like Buffet, but in what she describes as "Disruptive Innovation.

Since the Dec 24th market lows, Berkshire is up 7%, the S&P 500 is up 9%, while Ark's ETF'S are up, on average 25%: 

ARK Innovation Fund (ARKK) +28%

ARK Industrial Innovation (ARKQ) +17%

ARK Web W.0 +24%

ARK Genomic Revolution (ARKG) +32%

“Disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity and they aren’t analyzing the disruption.” - Catherine D. Wood, Founder and CIO, ARK Invest

As for Buffet, in Saturday's missive he laid out Berkshire's own "disruptive innovation" investment strategy for the coming year:

"[Berkshire] will be a significant repurchaser of its shares [and] will take place at prices above book value but below our estimate of intrinsic value." 

Two roads diverged in the wood...

ARK's top picks for 2019 - CNBC video below charts