“`html
My Top 5 Investments to Watch as We Enter 2025
Last year marked a significant milestone, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite reaching record high points throughout the year. The bull market is now over two years old, showing signs of consolidation as we move into 2025.
The transition to a new year often inspires reflection, particularly for investors. Reviewing my portfolio is a crucial step, allowing me to assess which stocks have emerged as my largest holdings and the reasons behind their dominance. This analysis offers valuable insights for future investment decisions.
Where should I invest $1,000 today? Our team of analysts has identified the 10 best stocks to consider this moment. See the 10 stocks »
As of market close on January 13, here are my five largest holdings as we head into 2025, along with key takeaways from each investment.
Image source: Getty Images.
Nvidia
Investors often have stories about “the one that got away.” For me, Nvidia (NASDAQ: NVDA) was that missed opportunity. I initially owned shares in Nvidia early in my investment journey but sold them in 2010 for tax reasons. The stock struggled for several years, making it seem like a good decision at the time. However, in 2016, its value tripled, reigniting my interest.
By 2018, Nvidia held a 70% share of the discrete desktop GPU market—gaining traction in cryptocurrency mining and self-driving car technology. CEO Jensen Huang’s strategic foresight proved valuable, and after thorough research, I purchased shares again despite the stock’s steep rise of over 600% in two years. Since my reconnection with Nvidia in March 2018, the stock has skyrocketed by 2,200%, now representing around 12% of my portfolio. This reinforces that it’s never too late to invest in a leading innovator.
Netflix
My first investment was in Netflix (NASDAQ: NFLX) back in late 2007. I remember canceling my block of late fees with Blockbuster, opting for Netflix’s DVD rental service instead. At that time, streaming was just beginning, but Netflix rapidly expanded its presence in the market.
Today, Netflix boasts 283 million subscribers globally, and my initial shares have appreciated 34,540%. Holding the stock during its fluctuations, including the “Qwikster” fallout, subscriber losses, and ventures into advertising, proved essential. Maintaining faith during challenges has rewarded dedicated investors significantly.
MercadoLibre
You may not recognize MercadoLibre (NASDAQ: MELI), a major player in Latin America’s e-commerce and digital payments market. Initially an online auction platform, it has evolved to serve 18 countries, offering services like logistics, payment processing, and digital financing.
Concerns about economic and political challenges in the region have led some investors to avoid this stock. For instance, Argentina, home to MercadoLibre, faced a staggering 166% inflation rate in November. Still, these risks present a unique opportunity, as online retail is growing rapidly in Latin America. MercadoLibre’s revenue rose 38% in the first nine months of 2024, with net income increasing by 55%. My modest investment from 2009 has ballooned by 7,900% and now constitutes 8% of my portfolio, illustrating the benefits of informed risk-taking.
Apple
A major player in the tech industry, Apple (NASDAQ: AAPL) continues to be the world’s most valuable company. When it crossed the $1 trillion market cap in 2018, many believed it couldn’t grow further. Concerns arose as iPhone sales, constituting over half of its revenue, slowed with increased smartphone saturation globally.
Yet, Apple’s services sector has shown resilience, generating $96 billion in revenue for fiscal 2024, outpacing 77% of Fortune 500 companies. Despite challenges, Apple maintains its dominance—illustrating that established firms can adapt and thrive in a volatile economy, reinforcing their position in the market.
“““html
Investing Insights: The Power of Patience and Smart Choices
Choosing the right moment to sell stocks can significantly impact your investment returns, as demonstrated by Apple. Since joining the exclusive $1 trillion club in 2018, Apple’s stock has surged by 350%, outpacing the S&P 500’s 106% gain. From my initial purchase in 2008, Apple’s stock has skyrocketed by 4,120%, now making up roughly 8% of my overall portfolio.
I’m confident there’s more growth ahead.
The Trade Desk: A Resilient Performer
Occasionally, a stock’s sudden drop leaves me questioning its validity. Such was the case with The Trade Desk (NASDAQ: TTD) in early 2020. For several years, it was one of my favorite stocks, known for its stronghold in digital advertising and rapid market growth.
To my shock, the stock plummeted 54% from February 19 to March 18, 2020. This decline was not the result of any faults within the company but rather the onset of the global pandemic. With years of following The Trade Desk, I sensed that the market’s reaction was an overreaction.
After confirming that there were no significant changes, I decided to double my shares in The Trade Desk. My reasoning was straightforward; the demand for advertising would remain, and the company had a solid track record of effectively targeting ads using advanced algorithms. Despite its stock being cut in half in just a month, the investing thesis remained intact.
Since that decision, the stock has risen by 717%, even in the face of a serious economic downturn. Additionally, from my first purchase in March 2018, The Trade Desk’s stock has experienced a remarkable 2,349% increase, making it my fifth-largest holding at 7% of my portfolio as I approach 2025.
The key takeaway here is simple: if your investment thesis stays strong and a quality company is discounted, consider buying more during a downturn.
A Valuable Lesson in Long-Term Investing
A recurring theme throughout my investment journey is the profound impact of long-term buy-and-hold strategies. Each of these stocks has been central to my portfolio for years. Nvidia and The Trade Desk are the latest among the top five, with almost seven years of ownership, while I’ve had Netflix shares for over 17 years. Even when these stocks have fallen between 25% and 50%, I resisted the urge to frequently buy and sell, aiming to time the market’s fluctuations.
Staying patient can be one of the most crucial strategies for investment success.
Considering a $1,000 Investment in Nvidia?
Before jumping into Nvidia stock, it’s essential to weigh your options:
The Motley Fool Stock Advisor analyst team has recently highlighted what they consider the 10 best stocks for investors right now, and Nvidia is not among them. These selected stocks have the potential for significant returns in the coming years.
For context, if you had invested $1,000 in Nvidia on April 15, 2005, following our recommendation, it would be worth $843,960!
Stock Advisor offers a straightforward framework for success, including portfolio-building advice, ongoing analyst insights, and two new stock picks each month. Since 2002, the Stock Advisor service has more than quadrupled the returns of the S&P 500.*
View the 10 stocks »
*Stock Advisor returns as of January 13, 2025
Danny Vena holds positions in Apple, MercadoLibre, Netflix, Nvidia, and The Trade Desk. The Motley Fool also has positions in and recommends Apple, MercadoLibre, Netflix, Nvidia, and The Trade Desk. Please refer to the Motley Fool’s disclosure policy.
The views and opinions expressed herein are those of the author and may not reflect the views of Nasdaq, Inc.
“`
