Performance of 2023 Stock Picks: A Recap
In 2023, my annual list of 10 stock selections delivered a positive return in a tumultuous year, but it fell short of the benchmark S&P 500 Index. The S&P 500 was up 13.1% since the publication of my list, compared to my collection’s 7.9%. However, over the past decade, my stock picks have outperformed the S&P 500, with an average annual gain of roughly 13% including dividends, compared to less than 12% for the S&P 500. Investing in stocks has proven to be a fabulous long-term investment, with the potential to double your original investment in about seven years and turn $100,000 into $1.6 million at the end of 30 years.
Why Pick Stocks Over Index Funds?
While stashing your nest egg in an S&P 500 index fund can be a wise long-term strategy, picking stocks can offer the opportunity for even greater returns. Picking stocks allows you to engage in an intellectually stimulating and potentially profitable exercise that millions of people enjoy. Over the past decade, my list of stock picks has consistently outperformed the S&P 500, demonstrating the potential for higher returns. While there are no guarantees in the stock market, picking stocks can be a rewarding endeavor for those willing to do their research and carefully select their investments.
My 2024 Stock Picks: A Closer Look
For 2024, I have selected a diverse range of stocks that I believe have the potential to outperform the market. These stocks include Alibaba Group (BABA), ASML Holding (ASML), Bank of America (BAC), Blue Bird (BLBD), Brown & Brown (BRO), DraftKings (DKNG), Klaviyo (KVYO), NVR (NVR), ONEOK (OKE), and Tesla (TSLA).
Best Performers of 2023: Highlighting Nu Holdings and Lululemon Athletica
The best performing stock from my 2023 list was Nu Holdings (NU), a Latin American fintech company that returned a impressive 68% last year. Nu Holdings was recently added to Warren Buffett’s Berkshire Hathaway equity portfolio, further highlighting its potential. Another standout performer was Lululemon Athletica (LULU), chosen from the holdings of the Fidelity Growth Company fund. Lululemon has a strong track record and is well-positioned in the athleisure market, making it a solid investment choice.
Expert Recommendations for 2024: Including Bank of America and DraftKings
Among the expert recommendations for 2024, Warren Buffett has chosen three home-building stocks: D.H. Horton (DHI), Lennar (LEN), and NVR (NVR). Terry Tillman, a software analyst at Truist Securities, has rated Klaviyo (KVYO) as a Buy immediately after its IPO. Tobias Fabian Mueller, the manager of the T. Rowe Price European Stock fund, has had success with LVMH Moët Hennessy Louis Vuitton (LVMUY) and recommends ASML Holding (ASML). Additionally, Parnassus Value Equity is backing Bank of America (BAC) as one of its top 10 holdings. These expert recommendations highlight a diverse range of stocks with strong potential for the year ahead.
Analyst comment
Positive news: The performance of the 2023 stock picks delivered a positive return, although it fell short of the S&P 500 benchmark. However, over the past decade, the stock picks have consistently outperformed the S&P 500, indicating higher returns. Analyst: The market is likely to continue to see potential opportunities for higher returns through stock picking, but investors should also consider the performance of the S&P 500 as a benchmark.
