Last year was a record year Dow Jones Industrial Average, S&P 500 Indexand Nasdaq Composite Index New highs were reached at many points throughout the year. Furthermore, the bull market continues to strengthen, having already passed its second anniversary in October, although it deserves a breather as it heads into 2025.
Turning out the old and welcoming the new is a good time for reflection, and as an avid investor, my first stop is usually my investment portfolio. One area I like to review is which stocks have become my largest holdings and how they dominate my portfolio, as this can provide great insight into the future.
Here are my top five holdings in 2025 (as of the close on January 13) along with key investing takeaways from each.
Like investing, fishing is full of "get-away" stories. Despite the intention to buy an interesting stock, life gets in the way and some developments cause the stock to soar by 100%, 500%, or even 1,000%. for me, NVIDIA (NASDAQ: NVDA) It was a big lie that got away.
I owned stock in the graphics processing unit (GPU) pioneer early in my investing career, but sold it in 2010 for a tax loss. I had been planning to buy back shares of the company, but the stock was underwater for most of the next five years, so I had time. Then the stock tripled in 2016 and I lost faith.
However, by early 2018, I was interested again. Nvidia holds 70% of the standalone desktop GPU market, has experienced strong demand for cryptocurrency mining, and is moving into the self-driving car market. It's clear that CEO Jensen Huang has a knack for predicting the next big thing and is adept at positioning Nvidia for success.
After a lot of research and careful consideration, I decided to buy Nvidia despite a stock price increase of over 600% in just over two years and a lofty valuation. I also added to my position several times over the next few years. When generative artificial intelligence (AI) exploded in popularity in early 2023, and Nvidia quickly became the gold standard, my research and belief paid off.
Nvidia has surged 2,200% since buying it in late March 2018, and the stock is now my largest holding, accounting for about 12% of my portfolio. In short, it's never too late to buy an industry-leading company with a long track record of innovation—even if the stock has moved away from you.
When I first started investing in late 2007, Netflix (NASDAQ: NFLX) It was the first stock I bought. I distinctly remember cutting up my Blockbuster membership card after paying a late fee that exceeded the cost of the movie. Netflix conveniently delivers DVDs by mail without hefty late fees. I'm a happy customer, so buying the stock makes 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, sustained market penetration and accelerated expansion. Since then, Netflix has become the undisputed king of streaming, with 283 million subscribers worldwide. My initial stock purchase in 2007 has soared 34,540%, and Netflix is my second largest holding at 12% of my portfolio.
Such huge gains only happened because I held on to the stock relentlessly, which is a lot harder than it sounds. Some shareholders quit after the "Qwikster" fiasco in 2011, others lost confidence when Netflix lost 1.2 million subscribers by mid-2022, and still others were hesitant about Netflix's move into advertising. I've held stocks through all of these challenges and more.
The company has tested the mettle of investors many times over the years, but for those who recognized that their investment philosophy hadn't changed and stayed the course, the returns have been life-changing.
You'd be forgiven if you've never heard of it free market (NASDAQ: MELI)However, from its humble beginnings as an online auction platform, it has become a leading technology company in Latin America, providing digital retail and payment services to 18 countries in the region. MercadoLibre provides logistics and transportation services, cross-docking and warehousing, online payments, digital wallets, consumer and merchant financing, and more.
Some investors have avoided the stock due to risks inherent in the region, including political instability, economic instability and hyperinflation. For example, inflation in Argentina, MercadoLibre's home country and one of its largest markets, soared 166% year-over-year in November, and that's just one of the challenges.
However, these risks mask huge opportunities. While its penetration is several years behind the United States, its online retail and digital payment adoption rates are among the fastest growing in the world, and its population is nearly twice that of the United States. MercadoLibre takes a commission from every transaction hosted on its site, which insulates the company from most risks. In the first nine months of 2024, MercadoLibre's revenue increased by 38% year-on-year, driving net profit to increase by 55%.
Understanding the level of risk and the size of the opportunity, I made a smart decision to buy this "risky" stock, and it was a very profitable decision. A modest initial investment grew by 7,900% in 2009. Combine that with several subsequent investments, and MercadoLibre represents about 8% of my portfolio.
This helps illustrate how education can help minimize risk.
Despite numerous challengers over the past few years, apple (NASDAQ:AAPL) Still 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 has done so many times since), some investors believed the company had peaked and had little room to rise from there.
Additionally, iPhones account for more than half of Apple's revenue, but sales have begun to slow as global smartphone penetration climbs. Add to that economic uncertainty, and it's easy to understand why some investors are skeptical.
However, the resilience of Apple's services unit has emerged in recent years, with the unit growing in each of the past four years despite the worst recession in decades. The unit brought in $96 billion in revenue in fiscal 2024 (ended Sept. 30), more than 77% of Fortune 500 companies. Moreover, despite falling iPhone sales, Apple continues to dominate the global smartphone market, with three best-selling models and four in the top 10, according to Counterpoint Research.
Selling a stock too early can be a costly investment mistake, and that's certainly the case with Apple. Since becoming a founding member of the trillion-dollar club in 2018, the stock has returned 350%, more than three times the S&P 500's 106% return. Additionally, since my first purchase in 2008, Apple stock has surged 4,120% to become my fourth largest position, accounting for approximately 8% of my portfolio.
I'm sure there's more to come.
Every once in a while, I find myself looking at a plunging stock and thinking, "That can't be right." That's what happens trading desk (NASDAQ:TTD) Early 2020. It's long been one of my strongest stocks - I've been buying this stock for years. The company is a digital advertising giant and continues to gain market share, growing faster than the industry.
Imagine my surprise when the stock lost 54% in value in the four weeks between February 19 and March 18, 2020. This was not due to any operational failure, malfeasance or financial impropriety at The Trade Desk, but instead marked the beginning of a global pandemic. However, I have followed the company for years and am pretty sure this is an overreaction from investors.
After checking to make sure there were no other changes, I put the money into practice and then double My position at The Trade Desk. My logic is simple. The need for advertising hasn't gone away, and the company has a strong track record of using sophisticated algorithms to automate the ad buying process, ensuring the right ads reach the target market. Additionally, the stock is selling for half what it was a month ago, But the investment philosophy has not changed.
Since then, the stock has gained 717% despite the worst recession in decades. Furthermore, since I first Bought shares of The Trade Desk in March 2018 and the stock has soared 2,349%. As a result, The Trade Desk will be my fifth largest holding by 2025, accounting for 7% of my portfolio.
The lesson here is simple. If the theme hasn't changed and a great company is on sale, don't be afraid to buy the dip.
If there's one overriding lesson in this list, it's the power of compounding in buy-and-hold investments over the long term. These stocks have been staples in my portfolio for years. Nvidia and The Trade Desk are the most recent companies to join the top five, nearly 7 years ago, and I've owned Netflix stock for over 17 years. There are many examples of these stocks having lost 25% to 50% of their value, but I resisted the common practice of buying and selling stocks in an attempt to time the peaks and troughs of the broader market.
Doing nothing is one of the biggest keys to investing success.
Ever feel like you missed out on an opportunity to buy the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts will publish 'Double Down' Stocks Recommend companies they think will be popular. If you're worried that you've missed out on an investment opportunity, now is the best time to buy before it's too late. The numbers speak for themselves:
NVIDIA: If you invested $1,000 in 2009 when we doubled down, You will have $357,084!*
apple: If you invested $1,000 in 2008 when we doubled down, You will have $43,554!*
Netflix: If you had invested $1,000 in 2004 when we doubled down, You will have $462,766!*
We're currently issuing "double down" alerts on three companies that are incredible and likely won't be available again anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns as of January 13, 2025
Danny Vena has worked at Apple, MercadoLibre, Netflix, Nvidia and The Trade Desk. The Motley Fool owns and recommends Apple, MercadoLibre, Netflix, Nvidia and The Trade Desk. The Motley Fool has a disclosure policy.
My 5 largest portfolios heading into 2025 — and the key investing lessons I’ve learned from each originally published by The Motley Fool