Cathie Wooden and Warren Buffett are two of probably the most well-known traders on the earth, albeit for very totally different causes.

Buffett runs the big conglomerate Berkshire Hathaway (BRK.A 0.01%) (BRK.B -0.57%) and has traditionally been a worth investor, though he dabbles in quite a lot of investing methods and in virtually each business. Wooden, then again, runs ARK Make investments, which manages a number of exchange-traded funds (ETF) targeted on development shares and is thought for being a big-tech investor and a believer in crypto, as effectively.

Whereas they’ve totally different investing methods, each Berkshire and ARK occur to personal two of the identical shares. These two shares simply occur to be doing fairly effectively in comparison with the broader market to this point in 2023. Let’s take a better take a look at these two shares.

1. StoneCo

Berkshire and ARK each appear to be within the fintech area in Latin America, significantly in Brazil, which is a really fast-growing banking and monetary market. ARK Make investments owns 2.45 million shares within the funds and e-commerce firm StoneCo (STNE -0.60%), valued at round $25 million. Berkshire owns near 10.7 million shares, valued at greater than $114 million.

StoneCo inventory is up about 32% this 12 months, which compares very favorably to the S&P 500‘s roughly 5% rise to this point this 12 months. Tech shares, normally, have rallied, because of favorable knowledge these days concerning inflation.

StoneCo makes it simpler for retailers in Latin America to do enterprise and drive gross sales, each on-line and in particular person. This contains offering varied monetary providers resembling funds, digital banking, and varied lending merchandise, in addition to software program, resembling an e-commerce platform, market, and buyer interplay instruments. On the finish of the third quarter of 2022, StoneCo had greater than 2.3 million fee purchasers producing $14.5 billion in quantity throughout its platform.

The corporate has struggled as a result of geopolitical and macro headwinds in Brazil in 2022, that are a standard theme within the nation, however remains to be exhibiting promising development in a high-opportunity market. The inventory trades at about 18 occasions ahead earnings, which is a development valuation however definitely not unreasonable, given the chance.

2. Nu Holdings

ARK Make investments owns the Brazilian digital financial institution Nu Holdings (NU 3.31%) in each its ARK Fintech Innovation ETF and its ARK Subsequent Technology Web ETF. Collectively, ARK owns near 4.5 million shares, value greater than $18.1 million. Berkshire owns greater than 107 million shares, valued at near $431.7 million. The inventory is up near 16% this 12 months.

Nu acquired its begin by providing bank cards with no annual charges to Brazilians after which expanded into many different banking merchandise and monetary providers. Its smooth fintech interface makes it so much simpler for patrons to make use of and entry than incumbent banks in Brazil.

Since launching in 2014, Nu amassed an astounding 70 million-plus prospects and now banks 39% of the Brazilian grownup inhabitants. Nu can be working in Mexico and Colombia. Within the third quarter of 2022, the corporate generated greater than $1.3 billion in income and even managed a small revenue of $7.8 million.

However being a financial institution, Nu is not resistant to broader macro headwinds, which have added considerations over how its bank card and private mortgage portfolio would possibly maintain up. Nonetheless, it isn’t frequent to see a fintech firm with this type of unbelievable development that additionally exhibiting indicators of profitability.