At the end of 2018, I picked 5 stocks that should do well in 2019, in my opinion. Here's my picks:
Alimentation Couche-Tard: Up 29%
MTY: Up 4%
Five Below: Up 27%
Alphabet: Up 17%
Visa: Up 32%
Average performance: 22%
S&P500/TSX Performance: 16%
S&P500 performance: 20%
What strikes me the most is that, while I've beaten both the S&P500/TSX and S&P500 indexes, I realize how hard it is to beat them both. Just take a look at the 5 stocks I've picked. They're all great businesses, among the 5% of best businesses on the stock market in my opinion.
I've only beaten the S&P500 by 2%.
These are not momentum stocks. These are buy and hold stocks. And while that expression looks honorable (like eternal love and eternal faith), very few people apply it. It's buy and hold as long as they keep growing at an interesting rate and as long as they don't do something stupid, like buying another company that doesn’t grow that much for 25 times earnings.
Really, most people should buy an index fund. That's a lot of work and reading to be able to beat the market by a slight margin without taking too much risks.