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Before getting into my 2024 stock picks, let me first summarize the performance of my annual list of 2023 10 stock picks. While these have delivered positive returns in a turbulent year, the benchmark S&P 500 index has fared better, gaining 13.1% in nearly a year. compared to 7.9% of my collection since we published.
Still, over the past 10 years, my list’s average performance has been around 13% annual return, including dividends, compared to less than 12% for the S&P. (Full story returns are through his October 31st. My 2024 stock picks are in bold.)
Stocks go up and down, but they have proven to be great investments in the long run. From the beginning of his 1957 year, when the S&P 500 assumed its current size and form, to October, the index’s average annual return was his 10.2%. There are no guarantees, of course, but at that rate, your original investment will double in about seven years. After 30 years, $100,000 becomes $1.6 million.
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Thanks to the genius of modern finance, you can now stash your nest egg in the S&P 500 index fund And it works out very well in the long run. So why choose stocks? As I’ve shown over the past decade, you can do better. It also means that millions of people engage in physical activity that they find intellectually stimulating, fun, different from other forms of distraction, and beneficial. Picking stocks isn’t for everyone, but my guess is that it’s for you. Otherwise you wouldn’t be reading this.
My stock picks for 2024
| company | ticker symbol |
|---|---|
| alibaba group | Baba |
| ASML Holding | ASML |
| american bank | BAC |
| blue bird | BLBD |
| brown & brown | fellow |
| draft kings | DKNG |
| Claviyo | KVYO |
| NVR | NVR |
| one ok | Orchestra |
| tesla | TSLA |
Every year since 1993, I have provided the following list. best stocks to buy For the coming year. I selected her nine from a wide selection of trusted experts, including one of my own. The best performer in 2023 was New Holdings (NU), a Latin American fintech company that was recently added to Warren Buffett’s stock list. Berkshire Hathaway Stock Portfolio. Nu returned a juicy 68%.
According to tradition, Mr. Buffett, as the top pick, will get the first candidate next year. Among his new purchases in 2023 were DH Horton (DHI), Lennar (LEN), and my personal favorite, homebuilding stocks. NVR (NVR) serves the Mid-Atlantic, Midwest, and South.expensive Interest level Although NVR has peaked, sales of new homes continue to rise as resale inventory is tight (owners are reluctant to sell if it means giving up a cheap mortgage).
Another major performer last year was Lululemon Athletica (LULU), which was selected from among the holdings of the Fidelity Growth Company fund, which has an impressive track record. Steve Weimerhas been a manager for the past 27 years and has recently purchased more shares. tesla The future of mobility is clearly electric, and Tesla has a huge advantage over traditional automakers. Prices are fair, down nearly $100 from its mid-summer peak.
The first one to appear on my list was Tobias Fabian MullerThe manager of the T. Rowe Price European Stocks Fund was a big winner last year with luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton (LVMUY). Like the continent, this fund has been in the doldrums for a decade, but the portfolio has some attractive assets, including: ASML Holding (ASML) is a Dutch company with a monopoly on technologies used in the mass production of advanced semiconductors. After soaring, the stock has fallen significantly over the past two years, making it a good entry point.
Terry Tillman trust securities Software Analyst has been my number one source of winning information for nearly a decade. But he was in a tough spot for the third year in a row. For 2024, I’m trying something different. The idea is to select stocks that Mr. Tillman has rated as “buy” immediately after their initial public offering (IPO) During September.the Claviyo (KVYO) is a marketing platform that sends personalized emails to customers. Klaviyo is a young company with rapidly growing revenues.
Late last year, Parnassus Endeavor changed its name to Value Equity. This is a good indication of the company’s direction. Merck (MRK), the fund’s pick last year, had mediocre performance. This year, I plan to select one of the fund’s top 10 holdings. american bank (BAC). If the economy deteriorates, there remains a significant risk that consumers and businesses will incur loan losses to banks. recessionBut if the yield curve returns to its traditional configuration, Bank of America could make huge profits from short-term borrowing and long-term lending.
In an underperforming sector, Oberweis Microcap stands out, outperforming the typical small-cap fund by an average of 8 percentage points over the past five years. One of the fund’s major holdings is blue bird (BLBD) is a school bus manufacturer with a market capitalization (price x number of shares outstanding) of just $600 million. Recently, the company delivered his 1,500th electric bus. This is a category with the potential for fast-growing profits as school districts convert their fleets.
Online retail giant Amazon.com (AMZN) trades at more than 40 times forward earnings, based on analysts’ 2024 earnings estimates. alibaba group holding Its China-based peer (BABA) has a single-digit P/E ratio. While this comparison is far from accurate, there is no doubt that Alibaba is cheaper, largely due to the political risk created by the conflict between the US and China. The stock price is down more than two-thirds in three years, so my guess is that all the risk (or more) is already reflected in the price. Alibaba is Matthews China’s largest holding and is managed by a talented team of Asia experts.
Few stocks are given the highest ranking (‘1’) for both timeliness and safety in the Value Line Investment Survey. I usually choose one stock for my list each year. As for 2024, brown & brown (BRO) is an 85-year-old property and casualty insurance company based in Florida that also manages health insurance claims.of mid-cap stock Revenues have been increasing year after year at what I like to call a beautiful line. The stock price has also increased, but is still at a reasonable level.
ARK Innovation, a technology-focused exchange-traded fund, has had its ups and downs (up 153% in 2020, down 67% in 2022), but manager Cathie Wood has plenty of good ideas. There is. One is draft kings (DKNG) is an online gaming company that is up 75% over the past year. Competition is fierce, but this is one of the great businesses of the future. Note that although revenue has skyrocketed, the company is still in the red.
Last year, my pick was Alphabet, formerly Google, which was the second best performer on my 2023 list. Looking ahead to 2024, I am choosing stocks that are friendly to my portfolio. one ok (OKE) is a well-managed natural gas pipeline and processing company based in Oklahoma. Exports of natural gas are surging, and the fuel will be essential to power the power plants that power electric vehicles, as a complement to domestic solar and wind power.
A few caveats: While we expect these stocks to outperform the market over the next 12 months, we don’t recommend buying the stocks unless you plan to hold them for at least five years. Please supplement and diversify my brief explanation with your own research. Happy hunting!
James K. Glassman is Chairman of Glassman Advisory, a public affairs consulting firm. He doesn’t write about his customers. His latest book is Safety Net: Strategies to De-risk Investments in Turbulent Times. Among the recommended stocks, he owns his NVR, Tesla, and ONEOK. Please contact us at JKGlassman@gmail.com.
Note: This item first appeared in Kiplinger’s Personal Finance Magazine, your trusted monthly source of advice and guidance.Subscribe to help us make more money and keep more of what we earn here.
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