My portofolio's performance in 2024: 29%
S&P500 performance: 24% (+ a dividend of about 1.3% for the year so about 25.3% in total)
There's 14 stocks out of 20 in my portfolio that have been with me for all of 2024. The 6 stocks that are out were all very good (Richelieu Hardware, Lululemon, Pool, Intuit, Agilent, Align) but I felt that I could find something better and usually less pricey. Also, my rule is to stick with 20 stocks, maybe less but not more. They were all small positions which means that these sells are not that significant.
I spent all of 2024 with 8-12% of my portfolio in cash (or equivalent). If I had been 100% invested all of the year, my performance would probably have been better. However, given the amazing performance of the market and it's valuation, I currently prefer to hold some cash and wait for a correction before becoming once again fully invested.
Top 5 positions at the end of 2024:
1- Constellation Software: 15.2% of the portfolio;
2- Alphabet: 11% of the portfolio;
3- Mastercard: 8.5% of the portfolio;
4- Microsoft: 7.6% of the portfolio;
5- Unitedhealth: 6.3% of the portfolio.
These 5 positions represent about 49% of my portfolio. Which means that they are my stocks of conviction. Most of my other stocks represent 2 to 3% of my portfolio.
Obviously, I don't know what will happen in 2025. I can't believe that the market will continue to be more and more pricey because current levels are very high and the market always go back to it's mean level, sooner or later. So, if nothing changes, I'll stick with my 10% cash/bonds and 90% stocks. However, if I see some panic or a second pandemic, I'll be happy to use my cash to be fully invested at a time when the market will be at it's 52 weeks lowest point.
Happy new year to everybody. I wish you some wealth in 2025 because that's about the only thing in life on which you have some control.
There's surely someone around you who will get cancer in 2025 and I don't have any wish to protect you from that.
Congradulations Penetrator...You have not only become a fine investor. You have become a craftsman.
RépondreSupprimerDiscipline seems to be the key attribute of the development of your craft.
I only wish I could have learned these things 20 or 30 years ago.
Way to go...
You know, we all respect Mark Leonard of Constellation software as a great capital allocator. Guess what? Microsoft and Alphabet (and Meta) ARE ALSO AMAZING AT ALLOCATING CAPITAL AND BUYING OTHER BUSINESSES. some examples: Microsoft purchasing LinkedIn or Meta/facebook purchasing Instagram...or how about google/alphabet and their enormous returns from their investment buying youTube? As for Mastercard, do people know how extremely high is their roe? Do people know that Mastercard and Visa RISK NOTHING and never lose money when some poor guy defaults on his credit card debt? That is the issuing bank's problem. Mastercard and Visa simply collect a toll or fee for each of many millions of transactions. They have one of the best businesses in the world.
RépondreSupprimerJason Donville was just on BNN Bloomberg. Some of his picks: Zedcor (350 M market cap), MDA (3.5 billion market cap), VHI (565M market cap) and E/enterprise group (160 M market cap). It is very possible that these stocks beat penetrator's stocks over the short term...but even Donville admits these small names need to be monitored closely every quarter. On the other hand, "pricey" bets like Dollarama or Shopify are great TEN YEAR investments despite being pricey now says Jason Donville. It is NOT returns that matter in the market as much as RISK ADJUSTED returns. On that basis, Monsieur Penetrator has Donville beat very soundly. I can "invest" in Quantum computing stocks that are very likely to go up 10% or 20% in one day...but I can also get wiped out in one day investing in these companies that do not have earnings or in some cases not even revenue.
RépondreSupprimerCOMPANIES/STOCKS WITH TOP 5 YEAR AVERAGE ROIC 1. TPL Texas Pacific Land Corp. 106% 2. ANET Arista Networks 94% 3. NVR NVR Inc. 78% 4. AAPLE Apple Inc. 77.5% 5. MA Mastercard 69% 6. NVDA Nvidia Corp. 64%
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