Warren Buffett outperforms Cathie Wood as tech stocks tumble and safer assets rise

• Warren Buffett's company has outperformed Cathie Wood's flagship fund since the start of 2020.
• Berkshire Hathaway stock has jumped 35%, surpassing the Ark Innovation ETF's 31% gain.
• Investors have dumped growth stocks and bought safer assets, hurting Ark and boosting Berkshire.

Warren Buffett's Berkshire Hathaway has outperformed Cathie Wood's Ark Innovation ETF (ARKK) since the start of 2020, showcasing the rotation from high-flying technology stocks to safe, predictable holdings this year.

Wood's flagship fund more than tripled its stock price between January 2020 and February 2021, as its bets on Tesla and other disruptive companies skyrocketed in value. However, the recent sell-off of growth stocks has cut ARKK stock by 32% this year, slashing its gain over the past 25 months to 31%.

Meanwhile, Berkshire "B" shares have climbed 2% this month, as the prospect of higher interest rates has spurred investors to make safer wagers. Berkshire shares have now surged 35% since the start of 2020, outstripping ARKK shares' performance by 4 percentage points — a striking reversal, given Berkshire trailed ARKK by 200 points in February 2021.

The turnaround reflects the fact that Buffett and Wood are at opposite ends of the investing spectrum. Berkshire owns scores of businesses in staid industries such as insurance and utilities, and holds multibillion-dollar stakes in tried-and-tested companies such as Bank of America and Coca-Cola.

In contrast, Wood invests in high-tech, transformative companies that are often unproven and unprofitable. ARKK's holdings include Coinbase, the cryptocurrency exchange, and Intellia Therapeutics, a biotech developing gene-editing treatments.

Berkshire stock has undeniably benefited from the company's massive investment in Apple, which has more than tripled in value in recent years. Yet it's fair to say that Buffett has invested far less riskily than Wood, but has still delivered a bigger return in the pandemic era so far.

Read more: Warren Buffett is ready to deploy $80 billion if the market crashes this year. 7 experts say the investor should trim his Apple stake, acquire luxury brands, or buy some blue-chip stocks in the meantime.

Here's the relative performance of Berkshire and ARKK shares since the start of 2020: