Reflecting on a Record-Breaking Year: Lessons from My Top 5 Holdings
As we bid farewell to a remarkable year, I take a moment to reflect on my investment portfolio. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all reached new heights, and my bull market continues to thrive. As I review my holdings, I’m reminded of the importance of patience, conviction, and long-term thinking.
Nvidia: Never Too Late to Join the Party
My largest holding, Nvidia, is a prime example of the power of innovation and adaptability. I initially sold my shares in 2010 but re-entered the stock in 2018, recognizing CEO Jensen Huang’s vision for the future. Despite its rapid growth, I continued to add to my position, and it now accounts for 12% of my portfolio. The lesson here? It’s never too late to invest in a industry-leading company with a proven track record of innovation.
Netflix: The Rewards of Relentless Conviction
My second-largest holding, Netflix, has been a staple in my portfolio since 2007. I held firm through the ups and downs, including the “Qwikster” fiasco and subscriber losses. Today, it accounts for 12% of my portfolio, with gains of 34,540%. The takeaway? Holding onto a stock through thick and thin can lead to life-changing returns.
MercadoLibre: Embracing Risk and Opportunity
MercadoLibre, my third-largest holding, is a lesser-known gem. Despite the risks associated with operating in Latin America, I recognized the company’s potential for growth and innovation. With a modest initial investment in 2009, my returns have soared 7,900%. The lesson here? Education and understanding can help minimize risk and uncover hidden opportunities.
Apple: Resilience and Services Segment Strength
My fourth-largest holding, Apple, has proven its resilience in the face of economic uncertainty. Despite concerns over iPhone sales, the company’s services segment has driven growth, generating revenue of $96 billion in fiscal 2024. Since my first purchase in 2008, Apple’s stock price has surged 4,120%, accounting for 8% of my portfolio. The takeaway? Don’t underestimate the power of a company’s services segment, even in the face of slowing sales.
The Trade Desk: Buying on the Dip
My fifth-largest holding, The Trade Desk, is a digital advertising powerhouse. When the stock plummeted 54% in early 2020, I doubled my position, recognizing the company’s strong fundamentals and the investing thesis hadn’t changed. Since then, the stock has gained 717%, accounting for 7% of my portfolio. The lesson here? If the thesis remains intact, don’t be afraid to buy on the dip.
The Compounding Power of Long-Term Investing
As I reflect on my top 5 holdings, one overriding lesson stands out: the compounding power of long-term buy-and-hold investing. Each of these stocks has been a staple in my portfolio for years, weathering market fluctuations and emerging stronger. The key to success? Doing nothing, resisting the urge to jump in and out of stocks, and letting time work in your favor.
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