Cathie Wood and Warren Buffett Both Own This "Magnificent Seven" Stock. Should You Buy It Hand Over Fist During the Nasdaq Sell-Off?
Cathie Wood and Warren Buffett have very different investment philosophies, but each owns a particular "Magnificent Seven" stock that looks primed to thrive.
Ark Invest CEO Cathie Wood and Berkshire Hathaway CEO Warren Buffett couldn't be any more different in their investment approaches.
Ark Invest offers investors the opportunity to invest in a number of exchange-traded funds (ETFs), many of which are weighted heavily toward speculative, unprofitable businesses. Wood's rationale is that she and her team tend to bet on high-risk, high-reward opportunities in emerging areas, such as artificial intelligence (AI) or biotech.
By contrast, Buffett's investment style leans heavily into the idea of identifying businesses that generate strong, steady cash flow and carry a high degree of brand appeal. Buffett tends to prefer industries such as insurance or consumer goods as opposed to higher-growth areas in the technology sector.
