Closing the door on the old and entering the new year is a great time for reflection, and as an avid investor, my first stop is usually my portfolio. One area I like to review is which stocks have emerged as my biggest holdings and how they have dominated my portfolio, as this can provide good insight into the future.
Here’s a look at my top five holdings in 2025 (as of the market close on January 13) and the important investment takeaways from each.
Fishing, like investing, is full of “getaway” stories. Despite the intentions to buy an interesting stock, life gets in the way, and some developments send the stock soaring, recording an increase of 100%, 500%, or even 1000%. for me, Nvidia (NASDAQ: NVDA) he was the one who ran away.
I owned shares of the graphics processing unit (GPU) pioneer early in my investing career, but sold them for collection of tax losses 2010. I was always going to buy the company back, but the stock was under water for most of the next five years, so I had time. Then the stock tripled in 2016, taking the wind out of my sails.
However, in early 2018, I became intrigued again. Nvidia held a 70% share of the desktop discrete graphics processor market, experienced high demand for cryptocurrency mining, and made inroads into the self-driving car market. It was clear that CEO Jensen Huang had a knack for predicting the next big thing and was adept at positioning Nvidia for success.
After much research and even more digging — and despite a gain of more than 600% in just over two years and an expensive valuation — I decided to buy Nvidia. I also added to my position many times over the following years. Nvidia quickly became the gold standard when generative artificial intelligence (AI) went viral in early 2023, and my research – and belief – paid off.
Since that purchase in late March 2018, Nvidia has jumped 2,200%, and the stock is now my largest holding, accounting for roughly 12% of my portfolio. Simply put, it’s never too late to buy an industry-leading company with a long history of innovation—even if the stock has run away.
When I first started investing at the end of 2007. Netflix (NASDAQ: NFLX) was the first stock I bought. I vividly remember cutting my Blockbuster membership card after paying a late fee that was more than the cost of the movie. Netflix delivered DVDs in the mail with virtually no delays. I was a happy buyer, so buying shares made perfect sense to me.
At the time, streaming was still in its infancy, but Netflix dominated the DVD-by-mail space, and I was intrigued by its early, consistent market penetration and rapid expansion. Since then, Netflix has become the undisputed king of streaming, with 283 million subscribers worldwide. The initial stock I bought in 2007 has jumped 34,540%, and Netflix is my second largest holding at 12% of my portfolio.
Gains of that magnitude only happened because I held the stock relentlessly, which is a lot harder than it sounds. Some shareholders pulled back after the “Qwikster” fiasco in 2011, others lost confidence when Netflix lost 1.2 million subscribers in mid-2022, and still others opposed Netflix’s push into advertising. I held the stock through all these challenges and more.
The company has tested the mettle of investors many times over the years, but for those who recognized that the investment thesis hadn’t changed and stuck with it, the rewards were life-changing.
You would be told if you never heard MercadoLibre (NASDAQ: MELI)since it is not a household name in the US. However, from humble beginnings as an online auction platform, it has become a leading technology company in Latin America, providing digital retail and payment services in 18 countries in the region. MercadoLibre provides logistics and delivery services, cross-docking and warehousing, online payments, digital wallets, consumer and merchant financing and more.
Some investors have avoided stocks due to the region’s inherent risks, which include political instability, economic upheaval and hyperinflation, among others. For example, Argentina, MercadoLibre’s home country and one of its largest markets, had an inflation rate that rose 166% year-over-year in November, and that’s just one of the challenges.
However, these risks mask a significant opportunity. Although a few years behind the US in terms of penetration, its online retail sales and digital payment adoption rates are among the fastest growing in the world, with a population almost twice that of the US, MercadoLibre takes a cut of every transaction hosted on its website, which gives the company isolates from a large part of the risk. During the first nine months of 2024, MercadoLibre’s revenue grew 38% year-over-year, driving net income up 55%.
Realizing the level of risk and the magnitude of the opportunity, I made a reasoned decision to buy this “risky” stock, a decision that was extremely profitable. The modest initial investment in 2009 grew by 7,900%. Combine that with a few subsequent investments and MercadoLibre makes up roughly 8% of my portfolio.
This helps illustrate how education can help reduce risk.
Despite numerous challengers in the past few years, Apple (NASDAQ: AAPL) remains the most valuable company in the world and one of the most successful in history. When the stock topped $1 trillion in market capitalization in 2018 — and many times since — some investors believed the company had peaked and there was very little upside to come from it.
Furthermore, the iPhone is responsible for more than half of Apple’s revenue, but as global smartphone penetration increases, sales have begun to slow. Add to that the uncertain economy, and it’s easy to understand the concerns of some investors.
Still, recent years have illustrated the resilience of Apple’s services segment, which has generated growth in each of the past four years despite the worst economic downturn in decades. The segment generated revenue of $96 billion in fiscal 2024 (which ended September 30), more than 77% of Fortune 500 companies. Furthermore, even though iPhone sales fell, Apple continued to dominate the global smartphone market, with the world’s three best-selling models and four of the top 10, according to Counterpoint Research.
Selling stocks too soon can be a costly investment mistake, as it certainly would be with Apple. Since becoming a charter member of the $1 trillion club in 2018, the stock has returned 350%, more than three times the 106% return of the S&P 500. Furthermore, since my first purchase in 2008, Apple’s share price has risen 4,120% becoming my fourth largest position, at approximately 8% of my portfolio.
I’m sure there will be more to come.
Every now and then I find myself looking at a stock that has fallen, thinking, “That can’t be right.” Such was the case with Shop Desk (NASDAQ: TTD) at the beginning of 2020. For a long time it was among my most condemned stocks — I was one of them adding to several years. The company was a digital advertising powerhouse and continued to gain market share, growing faster than the industry.
Imagine my surprise when — over a four-week period between February 19 and March 18, 2020 — the stock lost 54% of its value. This was not due to any operational failure, abuse or financial impropriety on the part of The Trade Desk, but rather marked the beginning of a global pandemic. However, I had followed the company for years and was quite sure that this was an overreaction by investors.
After checking that nothing else had changed, I put my money where my mouth was and doubled my position at The Trade Desk. My logic was simple. The need for advertising was not going away, and the company had a proven track record of using sophisticated algorithms to automate the ad buying process, ensuring that the right ads reach the target market. Furthermore, shares were selling for half as much as just a month earlier, but the investment thesis has not changed.
Since then, the stock is up 717%, despite the worst economic downturn in decades. Furthermore, since I first bought a share of The Trade Desk in March 2018, the stock jumped 2349%. As a result, The Trade Desk is my fifth largest holding entering 2025, representing 7% of my portfolio.
The lesson here is simple. If the thesis hasn’t changed, and a big company is selling at a discount, don’t be afraid to buy at a lower level.
If there’s one most important lesson that permeates this list, it’s the combined power of long-term investing with buy-and-hold. Each of these stocks has been a staple in my portfolio for years. Nvidia and The Trade Desk are the newest additions to the top five at nearly seven years old, while I’ve owned Netflix stock for over 17 years. There were numerous instances when these stocks lost between 25% and 50% of their value, but I resisted the usual practice of jumping in and out of stocks, trying to time the highs and lows of the broader market.
Doing nothing is one of the biggest keys to investing success.
Have you ever felt like you missed out on buying the best performing stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation to companies that they think will fail soon. If you’re worried that you’ve already missed an investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Nvidia: if you invested $1000 when we doubled in 2009 you would have $357,084!*
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Apple: if you invested $1000 when we doubled in 2008. you would have $43,554!*
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Netflix: if you invested $1000 when we doubled in 2004 you would have $462,766!*
Right now we are issuing “Double Dip” alerts for three amazing companies and there may not be another opportunity like this anytime soon.
See 3 stocks to “double down” »
*The stock advisor returns from January 13, 2025
Danny Vena holds positions at Apple, MercadoLibre, Netflix, Nvidia and The Trade Desk. The Motley Fool has positions in and recommends Apple, MercadoLibre, Netflix, Nvidia and The Trade Desk. The Motley Fool has a disclosure policy.
My Top 5 Portfolio Holdings Heading into 2025 — and the Important Investing Lesson I’ve Learned from Each was originally published by The Motley Fool
