Lessons Learned from My Top Investments Heading into 2024
Reflecting on the valuable insights gained from my top holdings
As the stock market shows signs of recovery after a tumultuous year in 2022, it’s an opportune time to review and analyze our investment portfolios. Looking back at our top investments can provide valuable lessons and insights for the future. In this article, we’ll explore my six largest holdings heading into 2024 and the valuable lessons I learned from each one. From missed opportunities to recognizing value in emerging markets, these experiences shed light on the ever-evolving world of investing.
No. 6: Nvidia – It’s never too late to invest in quality
Nvidia, a pioneer in graphics processing units (GPUs), was the “stock that got away” for me. Despite owning a few shares in its early days, I sold them and missed out on its subsequent rise. However, in 2018, I recognized Nvidia’s dominance in the GPU market, its role in cryptocurrency mining, and its potential in autonomous driving. Over the years, Nvidia has adapted to meet technological needs, becoming the gold standard for generative AI applications. The lesson here is that it’s never too late to invest in a quality company, even if the stock has already experienced significant growth.
No. 5 and 4: Shopify and Amazon – Finding value in different approaches
Shopify and Amazon represent two giants in the e-commerce space, each with its own unique approach. While Amazon established itself as the world’s largest digital retailer, Shopify carved out a profitable niche by providing customizable templates and tools for online businesses. Recognizing the value Shopify brought to the market, I made a significant investment in the company, despite already having exposure to e-commerce through Amazon. Both companies have continued to thrive in the age of digital retail, with Shopify’s stock surging over 1,446% and Amazon gaining 844%. This experience taught me that there’s room for different players in the market, and it’s essential to recognize the value each brings.
No. 3: Apple – Overcoming doubts and reaching new heights
Apple, one of the most successful companies in history, faced doubts about its future growth potential. Concerns over smartphone market saturation and slowing sales were prevalent. However, CEO Tim Cook successfully expanded Apple’s services business, making it comparable to a top 50 company in the Fortune 500. The iPhone continues to dominate the smartphone market, capturing a record share of revenue and profits. Apple’s market cap has tripled since 2018, and the stock has surged over 3,400% since my initial purchase. This experience taught me not to underestimate the potential of a quality company to continue growing.
No. 2: Mercadolibre – Recognizing long-term opportunities in emerging markets
MercadoLibre, the largest e-commerce and payments ecosystem in Latin America, faced risks associated with the region’s economic challenges. However, the significant long-term opportunity in Latin America’s growing e-commerce market outweighed the risks. With its diverse range of services, MercadoLibre has experienced consistent revenue and income growth. My initial investment in 2009 has grown by over 7,300%, highlighting the importance of understanding risks within the context of long-term opportunities.
No. 1: Netflix – The power of holding onto a long-term vision
Netflix, the world’s largest subscription streaming video service, was the first stock I purchased in 2007. Despite facing challenges and competition over the years, I held onto the stock based on my belief in its potential to expand its success. This long-term buy-and-hold strategy paid off, with the value of my initial shares surging over 19,000%. This experience taught me the importance of sticking to an investing thesis and resisting the temptation to sell during challenging times.
Conclusion:
Reflecting on my top investments heading into 2024 has provided valuable lessons for the future. From recognizing missed opportunities to finding value in different approaches and emerging markets, these experiences have shaped my investing strategies. The key takeaways include the importance of investing in quality companies, recognizing the value each player brings to the market, not underestimating the growth potential of established companies, understanding risks within the context of long-term opportunities, and the power of holding onto a long-term vision. As we navigate the ever-changing world of investing, these lessons serve as guideposts for making informed decisions and maximizing potential returns.