According to the All-in-One Screener, a Premium feature of GuruFocus, the second-quarter 13F equity portfolios of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) and Catherine Wood (Trades, Portfolio)’s ARK Invest contain five stocks that have outperformed the Standard & Poor’s 500 Index during the past three months: Snowflake Inc. (SNOW, Financial), Apple Inc. (AAPL, Financial), Amazon.com Inc. (AMZN, Financial), United Parcel Service Inc. (UPS, Financial) and Nu Holdings Ltd. (NU, Financial).
Background
During the 1950s, Buffett studied under Benjamin Graham at Columbia University and acquired textile company Berkshire Hathaway. Today, the Omaha, Nebraska-based insurance conglomerate has a market cap of over $654 billion.
Buffett and Berkshire Vice-Chairman Charlie Munger (Trades, Portfolio) apply a four-criteria approach to investing: understandable business, favorable growth prospects, shareholder-friendly management and attractive valuations.
On the other hand, ARK Invest favors disruptive innovation and uses an iterative process that combines top-down and bottom-up research. The St. Petersburg, Florida-based firm seeks to identify companies that can benefit from technological innovations centered around DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.
As of June, Berkshire’s $300.13 billion 13F equity portfolio contains 47 stocks with a quarterly turnover ratio of 1%. The top four sectors in terms of weight are technology, financial services, consumer defensive and energy, representing 42.92%, 25.66%, 13.38% and 10.90% of the equity portfolio.
Likewise, ARK Invest’s $16.91 billion 13F equity portfolio contains 351 stocks as of June, with a quarterly turnover ratio of 8%. The top four sectors in terms of weight are health care, technology, communication services and consumer cyclical, accounting for 34.58%, 34.50%, 13.11% and 10.53% of the equity portfolio.
Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings as they only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Snowflake
Berkshire and ARK Invest have a combined weight of 0.28% in Snowflake (SNOW, Financial).
Shares of Snowflake traded around $195.17 on Thursday, up 22.13% from Wednesday’s close of $159.81 driven by second-quarter earnings results that smashed analyst estimates. The stock has outperformed the S&P 500 by 41.77% over the past three months.
The Bozeman, Montana-based data warehouse company said on Wednesday that product revenue for the three months ending July 31 were $466.30 million, up 83% year over year. Total revenue of $497.2 million surpassed the Refinitiv consensus estimate of $467 million.
Snowflake said that product revenue is expected to range between $500 million and $505 million during the third quarter and between $1.90 billion and $1.91 billion for the full year, up over 60% year over year.
The company has a financial strength rank of 8 out of 10, driven by several positive investing signs, which include a high Altman Z-score and a cash-to-debt ratio that outperforms more than 68% of global competitors.
Despite high financial strength, Snowflake does not have enough data to compute a profitability rank, GF Value rank, growth rank and momentum rank and thus, the GF Score of 20 out of 100 may give an incomplete picture of the company’s potential.
Other gurus with holdings in Snowflake include Frank Sands (Trades, Portfolio)’ Sands Capital Investment and Baillie Gifford (Trades, Portfolio).
Apple
Berkshire and ARK Invest have a combined holding of 40.76% in Apple (AAPL, Financial).
Shares of Apple traded around $169.42, showing that the stock is fairly valued based on Thursday’s price-to-GF-Value of approximately 1. The stock has outperformed the S&P 500 by approximately 15.29% over the past three months.
The Cupertino, California-based consumer electronics giant has a GF Score of 98 out of 100, driven by a rank of 10 out of 10 for profitability, growth and momentum despite financial strength and GF Value ranking between 6 and 7 out of 10.
Other gurus with holdings in Apple include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Spiros Segalas (Trades, Portfolio)’ Harbor Capital Appreciation Fund.
Amazon.com
Berkshire and ARK Invest have a combined holding of 0.43% in Amazon.com (AMZN, Financial).
Shares of Amazon.com traded around $137.30, showing the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.72. The stock has outperformed the S&P 500 by approximately 22.41% over the past three months.
The Seattle-based e-commerce giant has a GF Score of 94 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, a financial strength rank of 6 out of 10 and a momentum rank of 5 out of 10.
United Parcel Service
Berkshire and ARK Invest have a combined holding of 0.02% in United Parcel Service (UPS, Financial).
Shares of United Parcel Service traded around $205, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.03. The stock has outperformed the S&P 500 by approximately 12.92% over the past three months.
The Atlanta-based logistics company has a GF Score of 92 out of 100 based on a rank of 9 out of 10 for profitability and growth, a momentum rank of 8 out of 10, a financial strength rank of 7 out of 10 and a GF Value rank of 5 out of 10.
Nu Holdings
Berkshire and ARK Invest have a combined holding of 0.24% in Nu Holdings (NU, Financial).
Shares of Nu Holdings traded around $4.96 on Thursday. The stock has outperformed the S&P 500 by approximately 32.61% over the past three months.
The digital banking company has a GF Score of 19 out of 100 based on a financial strength rank of 5 out of 10 and a profitability rank of 1 out of 10. Despite this, the stock does not have enough data to compute a growth rank, a GF Value rank or a momentum rank and thus, the GF Score may give an incomplete picture of the company’s potential.
