From 138% Gains in 2024 to the Next Big Winners? My Top Picks for 2025

It’s time for me to share my 10X picks for 2025.

The idea behind it is to pick the best 10 stocks I can find, to beat the S&P 500 by buying and holding for 12 months.

I started this on January 1, 2023, and then on January 1, 2024:

My 2023 portfolio performed well, returning +54% vs. +26% for the S&P 500.

My 2024 portfolio returned +138% vs. +25% for the S&P 500, as shown below. I must admit that picking APP (which returned 735% in 12 months) also required some luck. Stocks like this are rare in a 7- or 10-stock portfolio.

Now it’s time to make my choice for 2025.

In a nutshell, here is my process:

• I search for companies that are growing their profitability, as measured by Return on Assets (ROA) and earnings margins.

• I also check whether these companies are reinvesting in their businesses.

• I make sure they’re growing revenues by at least 10%.

• Lastly, I look at a DCF model to ensure the companies aren’t overvalued and ideally are fairly valued or undervalued.

• I review the latest earnings calls and analyst articles, and I run a custom ChatGPT to weigh 11 key aspects typical of winning companies.

• When I narrow it down to about 15 candidates, I look at their long-term charts to select those that show the strongest potential.

Below is a summary of my 10 picks for 2025.

I also prepared the same Google sheet format to keep track of the performance of this portfolio live. (link)

My goal is to beat the index. I believe that 138% in one year is exceptional, and I’d be happy to outperform the index and end 2025 above 15% or 20%.

If we see a positive market in 2025, growing by 5% or more, then this portfolio will likely outperform the S&P 500. If the S&P 500 ends in negative territory, my portfolio might underperform because it contains smaller, more volatile stocks.

That’s all for this special edition.

Thank you to all supporters, and especially to paid subscribers who help fund my research. Have a great start to the year and a fantastic 2025, everyone!

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Important: This is not investment advice. Please consult a licensed financial advisor before making any investment decisions.

Disclosure: The content has been reviewed using artificial intelligence to enhance readability and ensure grammatical accuracy.