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Teladoc Health Reveals Cathie Wood Is Kind Of Warren Buffett 2.0 After All | news

The share of Teladoc health (NYSE: BAC), juggling Cathie Wood and Warren Buffett isn’t exactly easy. But the drop in the US telemedicine specialist’s share price shows me that there is an overlap: namely the approach of how two-star investors invest.

Long story short: Cathie Wood is now getting the “falling knife” at Teladoc Health and buying constantly. This, in turn, reminds me a lot of Warren Buffett’s approach to buying and staying true to his own approach. Let’s take a look at a comparison that, despite the different stock selections, is very accurate to me.

Cathie Wood: Like Warren Buffett at Teladoc Health?

Sure, Warren Buffett probably wouldn’t even put a pinch on Teladoc Health stock. Cathie Wood with her Ark Innovation ETF and the focus on strong innovations, on the other hand. But let’s leave the differences to this: here’s what I have in common.

The leading investor is obviously not dissuaded from the current sale. He is convinced of the market and of the company in particular and uses the most favorable valuation measure to consistently and subsequently increase his position. Although he actually just lost half a billion dollars on this stake.

Warren Buffett always says he likes to buy quality at a reasonable price. Plus the fact that as an investor you have to live with it if a stock temporarily loses much of its value. Apparently, Cathie Wood also shares these beliefs, which we can see from her purchases.

Even now, after a short-lived nearly 50% decline in value in just one trading day, it remains focused on the Teladoc Health equity business. Business and innovation oriented only. And of course in the long run.

Many similarities!

Whether Cathie Wood is right at Teladoc Health is another question. However, even Warren Buffett isn’t always right. But consistency and focus are what both investors share for me. Either way, this now leads to the consistently cheap buyback of a stock she is convinced of over the long term.

Cathie Wood recently said that she does not measure her success by the share price or the price level of her Ark ETFs, which is also a key overlap. Their belief is long-term in nature and is based on the fundamental belief that innovations such as telemedicine will produce exceptional long-term returns. Incidentally, in this specific case, use a price / sale ratio of less than 3.

Overall though, I’m starting to see more and more of what Cathie Wood and Warren Buffett have in common when it comes to the business approach. Buying more opportunities as they become more favorable is an educational element for me, regardless of whether or not she is ultimately right.

Teladoc’s health article shows Cathie Wood is a bit of a Warren Buffett After All first appeared in The Motley Fool Germany.

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Vincent owns shares in Teladoc Health. The Motley Fool owns and recommends Teladoc Health actions.

Motley Fool Deutschland 2022

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