My Top 10 Stocks to Buy in 2024 Are Beating the Market by 48%. Should You Buy Them for 2025?

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In Jan. 2023, I wrote about my 10 top stocks to buy for the new year. I ended up pretty proud of my list because if you’d invested $1,000 in each of the 10 stocks the day the article was published, you’d have ended 2023 with $13,301, including dividends. If you’d instead put your $10,000 into an S&P 500 (SNPINDEX: ^GSPC) index fund, you would’ve had just $11,900 at the end of the year. In other words, the total return of my stock picks beat the broad market by 74%.

And last December, I updated my list of top 10 stocks for 2024, which have again outperformed the market. With $10,000 invested equally across those 10 stocks at the beginning of the year, you’d have $14,281 as of the Dec. 5 market close. An equal investment in an S&P 500 index fund would be worth $12,890. That’s a total return difference of 48%.

That’s an encouraging result given how strong stocks have been this year. When the market is down, it’s much easier to beat. For example, when the S&P 500 lost 18% in 2022, 51% of U.S. equity managers underperformed the market. But through the first half of a bullish 2024, 57% of large-cap U.S. equity managers were underperforming the index, and 60% underperformed it last year when the index was up 24%.

Let’s take a closer look at how my picks are faring with about a month to go in 2024 and consider whether you should buy them for the coming year.

The top 10 stocks I chose for 2024 were Airbnb (NASDAQ: ABNB), Amazon (NASDAQ: AMZN), Costco Wholesale (NASDAQ: COST), Global-e Online (NASDAQ: GLBE), Lemonade (NYSE: LMND), Lululemon Athletica (NASDAQ: LULU), MercadoLibre (NASDAQ: MELI), Nu Holdings (NYSE: NU), SoFi Technologies (NASDAQ: SOFI), and Visa (NYSE: V).

Here’s how they are performing compared to the S&P 500 as of Dec. 5:

Data by YCharts.

Nine of my top 10 picks are up year to date. The lone exception, Lululemon, is experiencing some major challenges right now. Let’s do a quick rundown on each of these…

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