Reviewing my stock purchases for 2024

How my stock picks performed during the year

You don’t have to be an investor to know that the stock market has been on a tear.

It scares me when everyone (including those who have no interest in investing) is talking about how much money they’re making in the markets.

A clear signal that the market top is near.

Others may be celebrating their gains, but I am starting to feel afraid.

While there are still some bargains in this raging bull market, I’m cautious about adding to my long-term investments.

As it’s unlikely that I’ll be adding more positions, I figured it’s a good time to review all my stock purchases for 2024.

Alphabet (GOOGL)

The king of search - a new position I entered this year.

Having had eyes on this company for a long time, but never owning it, Mr Market finally presented me with an opportunity (2 in fact) this year.

The first was in March 2024, when I initiated a position at $138.

The second time I entered was 6 months later in Sept 2024, at a price of $149.

It’s now trading higher in the 170s.

The lesson learned here: Averaging up can still be profitable.

I’ve already put in a limit order at $162, which is about 18% below my intrinsic value of $198.

If the share price drops to that level, I get to accumulate more shares. If not, I’ll just ride the gains on my existing position.

Salesforce (CRM)

This was part of a rebalancing that I did, selling out of Berkshire Hathaway.

At the time, it was a scary move and I questioned myself if I was making the right decision.

I documented my rationale in a previous article on 12 May 2024, where I got in at $277.

A somewhat contrarian move as everyone was buying the shares post-AGM while I was selling.

I did a separate piece on why having a position in Salesforce (CRM) might be a better use of capital at the time.

Looking at the trailing 6 month period, CRM has returned 50%, while BRK.B did just 15%.

6 months is short-term I know, so we’ll see what happens over time.

As of now, it appears that my decision to rebalance has been the right one.

Lululemon (LULU)

This company caught my attention after I started practising yoga on a regular basis early this year.

Many yogis were donning yoga clothing from this brand, and I decided to try it for myself.

The shorts were so comfortable, it allowed me to move and flow with ease.

Never once did I feel like my movement was restricted, a trait that other shorts lacked.

When I first bought the stock, I was well aware of the risks involved.

Fashion has always been cyclical, trends come and go.

My market timing has never been the best, so this one had been in the red almost from the get-go.

At one point in time, I was down more than 30% from my purchase price of $358.

It’s only recently that the share price jumped after the company reported strong earnings.

This means that the only red position in my long term stock portfolio has now turned green.

Takeaways

While I’ve made some good stock picks this year, I’m aware that the stock market has been going up indiscriminately.

Stocks have been going up, whether backed by fundamentals or not.

Tracking the performance of these stocks over a long timeframe will provide a better indication of whether I’m doing something right or not.

When everyone may be looking to buy stocks during this run up, I’m staying away for now.

It’s important to focus on our own game plan, planning our purchases based on the price levels we have identified.

Personally, I’m a little disappointed that the market just keeps going up, not giving me an opportunity to add to my existing positions.