As we near the end of 2024, it’s a good time to reflect on the performance of my top 10 stock picks for the year. Se selections not only delivered robust returns but also outpaced the broader market by a significant margin, reinforcing the value of focused stock selection for long-term wealth building.
If you had invested $10,000 equally across my 10 picks in January, your portfolio would now be worth $14,281—a 48% gain, compared to $12,890 (29% gain) had you invested in an S&P 500 index fund. This follows from 2023, when my picks beat the market by an impressive 74%, showcasing a consistent edge in stock selection.
Performance Snapshot
Here’s how my 2024 stock picks performed year-to-date (as of December 5):
- Airbnb (ABNB): Flat
- Amazon (AMZN): Up 45%
- Costco Wholesale (COST): Up 50%
- Global-e Online (GLBE): Up 34%
- Lemonade (LMND): Up 185%
- Lululemon Athletica (LULU): Down 33%
- MercadoLibre (MELI): Up 26%
- Nu Holdings (NU): Up 44%
- SoFi Technologies (SOFI): Up 57%
- Visa (V): Up 20%
With nine out of ten stocks posting gains and a standout performance from Lemonade, the portfolio highlights the importance of diversifying across growth, value, and resilient sectors.
Deep Dive into Picks
Airbnb (Flat)
After surging 59% in 2023, Airbnb saw growth stabilize this year. Profitability improvements have transitioned stock into a value play, trading at 22 times trailing free cash flow. With a loyal user base and platform growth, it remains a strong candidate for patient investors.
Amazon (Up 45%)
Amazon’s AI innovations have propelled growth in its cloud computing arm, AWS, while its dominance in e-commerce continues. With diversified revenue streams and a leadership position in emerging technologies, it remains a top choice.
Costco Wholesale (Up 50%)
Costco continues to shine as a reliable performer, reaching new all-time highs. Its membership-based model and consistent financial performance make it a defensive play with strong growth potential.
Global-e Online (Up 34%)
This cross-border e-commerce enabler serves major brands like Disney and LVMH. High growth and improving profitability position Global-e to extend its momentum in coming years.
Lemonade (Up 185%)
Lemonade’s AI-driven insurance model has turned skeptics into believers. Significant strides toward profitability have rewarded patient investors, proving that disruptive business models can deliver in the long run.
Lululemon Athletica (Down 33%)
Lululemon faced headwinds with product missteps and a soft premium apparel market. However, its long-term growth prospects remain intact, and the current dip presents a buying opportunity for patient investors.
MercadoLibre (Up 26%)
Despite challenges from economic instability and competition, MercadoLibre’s profitability and growth in Latin America underscore its resilience and potential for future gains.
Nu Holdings (Up 44%)
digital banking leader in Brazil is scaling rapidly, leveraging its innovative cross-selling strategy to increase revenue per customer. Its expansion into new markets supports a strong growth outlook.
SoFi Technologies (Up 57%)
SoFi’s transformation into a full-service financial platform has yielded profitability and market share gains. With a promising growth trajectory, it remains a compelling fintech play.
Visa (Up 20%)
Visa’s dependable growth makes it an all-wear stock. While it slightly underperformed this year’s tech-fueled market rally, its value and resilience make it a staple in any portfolio.
Key Lessons and Outlook for 2025
- Diversification Matters: portfolio balanced high-growth disruptors with reliable performers, ensuring overall stability and high returns.
- Patience Pays: Stocks like Lemonade exemplify the benefits of sticking with quality companies through tough times.
- Think Long Term: Yearly market swings matter less when you focus on holding quality stocks that align with your financial goals.
Looking ahead to 2025, se stocks remain strong candidates for continued growth, though diversification with ETFs or additional stocks can help manage risk. As always, research and a long-term mindset are key to success in the ever-changing stock market.