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Top Stocks Beat Market Despite Off Year
16 Dec
Summary
- Top stocks outperformed the market by 8 percentage points this year.
- Over three years, the top stock list yielded 235% returns versus 69%.
- Two high-conviction stocks are losing value but expected to rebound.
A strategy of selecting 10 top stocks annually has showcased impressive long-term returns, significantly outperforming the S&P 500. While this year's performance saw an 8-percentage-point beat, the three-year track record reveals a staggering 235% gain compared to the S&P 500's 69%. This performance highlights the resilience of sound investment principles, even when individual stocks experience short-term volatility due to market sentiment or quarterly results.
Even the portfolio's two current underperformers are high-conviction picks whose underlying businesses are thriving. This presents a potential buying opportunity for long-term investors, who are encouraged to view dips as chances to increase holdings. The article notes that the S&P 500's recent gains are largely fueled by AI enthusiasm, an area not heavily weighted in this particular stock selection.
