Periodically, it’s important to review your portfolio holdings to determine which equities warrant increased investment for long-term growth, which present opportunities for profit-taking, and which should be sold. I typically conduct this review annually, evaluating each stock based on my observations throughout the preceding year. Given the thousands of stocks traded on U.S. and Canadian exchanges, I maintain a watchlist named “Stock Picks for 2025 Cooking” which comprises promising companies identified throughout the year. These curated picks represent potential long-term investments or swing trade opportunities, helping me avoid entering stock because of the fear of missing out.
My portfolio experienced significant growth in 2024, driven by a simple stock-picking strategy, which I’ve detailed in a previous post on Reflecting on My 2024 Stock Investing Strategy: Wins, Misses, and Areas for Improvement. Building on that success, I’m refining my approach in 2025 to mitigate risk and enhance growth potential by incorporating additional performance measurement tools and other key factors.
My Top Diversified Stocks Picks for 2025
| Stock | Sectors | Industry | Current Price Per Share (USD) |
|---|---|---|---|
Salesforce, Inc (CRM) | Technology | Software – Application | $344.14 |
NextEra Energy (NEE) | Energy | Utilities – Regulated Electric | $69.90 |
Exxon Mobil Corporation (XOM) | Energy | Oil & Gas Integrated | $109.96 |
Spotify Technologies (SPOT) | Communication | Industry: Internet Content & Information | $621.77 |
Tesla (TSLA) | Consummer Cyclical | Auto Manufacturers | $392.21 |
Broadcom (AVGO) | Sector(s): Technology | Industry: Semiconductors | $222.43 |
| The Trade Desk (TTD) | Technology | Industry: Software – Application | $113.54 |
| Intuitive Surgical (ISRG) | Healthcare | Medical Instruments & Supplies | $579.65 |
D.R. Horton (DHI) | Consumer Cyclical | Residential Construction | $139.76 |
| Motorola Solutions (MSI) | Technology | Communication Equipment | $704.19 |
| Palo Alto Networks (PANW) | Technology | Software – Infrastructure | $183.40 |
Boston Scientific Corporation (BSX) | Healthcare | Medical Devices | $103.54 |
Meta Platforms (META) | Communication Services | Internet Content & Information | $704.19 |
Berkshire Hathaway (BRK-B) | Financial Services | Insurance – Diversified | $467.49 |
| Eli Lilly and Company (LLY) | Healthcare | Drug Manufacturers – General | $826.07 |
| Axon Enterprise (AXON) | Industrials | Aerospace & Defense | $662.91 |
Netflix (NFLX) | Communication | Entertainment | $994.87 |
NVIDIA Corporation (NVDA) | Technology | Semiconductor | $118.65 |
Alphabet (GOOG) | Communication Services | Internet Content & Information | $207.71 |
BKNG (Booking Holdings Inc.) | Consumer Cyclical | Travel Services | $4,678.94 |
Microsoft Corporation (MSFT) | Technology | Software – Infrastructure | $412.37 |
Apple (AAPL) | Technology | Consumer Electronics | $232.80 |
Amazon (AMZN) | Consumer Cyclical | Internet Retail | $242.06 |
ServiceNow (NOW) | Technology | Software Application | $1,010.13 |
Taiwan Semiconductor Manufacturing Company (TSM) | Technology | Semiconductor | $204.05 |
Oracle Corporation | Technology | Software – Infrastructure | $167.89 |
UI (Ubiquiti Inc) | Technology | Communication Equipment | $421.00 |
TCOM (Trip.com) | Consumer Cyclical | Travel Services | $71.27 |
RCL (Royal Caribbean Cruises Ltd) | Consumer Cyclical | Travel Services | $263.59 |
PLTR (Palantir Technologies) | Technology | Software – Application | $103.83 |
The Home Deport (HD) | Consumer Cyclical | Home Improvement Retail | $411.49 |
| Extra Space Storage (EXR) | Real Estate | REIT – Industry | $152.00 |
Digital Realty Trust(DLR ) | Real Estate | REIT – Specialty | $163.34 |
BlackRock (BLK) | Financial Services | Asset Management | $1,015.66 |
| General Electric Aerospace(GE) | Industrials | Aerospace & Defense | $202.18 |
Novo Nordisk A/S ?(NVO) | Healthcare | Drug Manufacturers – General | $82.62 |
| Dollarama (DOL.TO) | Consumer Defensive | Discount Stores | $137.92 CAD |
How I picked my 2025 Stocks Watchlist
My stock picks for this year remain straightforward, avoiding unnecessary complexity. However, I have introduced additional research criteria, to enhance my selection process as shown below
- Technical: I use a straightforward approach to time my portfolio entries, focusing on a combination of technical indicators. Specifically, I analyze trendlines, the Relative Strength Index (RSI), and moving averages to identify potential buy signals for my swing trading and long-term investments. I recognize that consistently timing the market perfectly is difficult, but these tools help me identify favourable entry points. For my swing trades, technical analysis plays a more prominent role, and I pay close attention to price action, including gap ups, gap downs, volume, support/resistance levels and breakouts.
- Diversification: While some advocate broad diversification across sectors to mitigate market downturns, I lean towards Warren Buffett’s philosophy of investing in fundamentally sound businesses. After all, he’s earned the moniker “Oracle of Omaha” for good reason. While I admire his approach, I acknowledge that I currently lack his extensive experience in identifying those exceptional companies. Therefore, I will safeguard my portfolio by diversifying my strategy for now. As I gain more expertise, I intend to gradually shift towards a more concentrated portfolio of “wonderful businesses,” emulating Buffett’s long-term value investing approach.
- Fundamentals: Using performance measurement to analyze financial statements look out for a strong balance sheet with Revenue and earnings looking for strong growth and free flow cash to measure the solvency of the business if they can survive or ability to pay their current liabilities/debts to keep their doors open.
- Artificial intelligence (AI): I leverage AI primarily for research and productivity enhancements. While AI tools like chatbots and applications are not yet sophisticated enough to provide definitive buy/sell signals or automate trading (though perhaps that’s on the horizon), they are valuable for streamlining research by double-checking from the right sources. For example, AI can significantly expedite the process of analyzing SEC filings, staying abreast of company-specific news and events, and summarizing information from presentations and webinars. This allows me to focus my time on higher-level analysis and decision-making.
- Own successful businesses (stocks): I cannot overstate the importance of investing in quality stocks, especially for long-term investments. I have also chosen to swing trade quality stocks as a way to manage my risk and limit my exposure to lower-quality companies. Quality can be determined through fundamental analysis and thorough research of the business.
- Compare Stocks with the Future: I evaluate stock performance by comparing their returns to relevant major market averages over various timeframes. This includes year-to-date, 1-year, 3-year, and 5-year returns. For swing trades, I utilize shorter timeframes and charting tools to analyze performance relative to these averages. This comparative analysis helps me gauge a stock’s strength and potential relative to the overall market.
- Economic Conditions: Economic conditions can be favourable or weak which affects the stocks. Interest rates affect economic growth, low interest rates call for more funds invested in the market which causes stock prices to rise and high interest rates cause selling in the markets because businesses may not be able to borrow more money to expand their businesses or make more money.
What are Sectors/Industry in Stocks
Sectors: Understanding stock market sectors is crucial for informed investing. Categorizing stocks by industry or sector allows investors to diversify their portfolios more effectively and benchmark stock performance against broader economic trends. While a company’s stock price might be rising, it’s essential to consider the overall health of its sector. A struggling industry could indicate future challenges for even high-performing companies within it.
The goal is to maximize returns through a diversified portfolio of long-term investments and swing trades, while simultaneously managing risk and exposure to mitigate potential losses during market corrections or pullbacks.
Sources
GrahamValue. (2019). Warren Buffett and Diversification. YouTube. https://www.youtube.com/watch?v=55IFdwZ_oQk
Lynch, P. (2012). Beating the Street. Simon and Schuster.
Madura, J. (2020). Personal Finance (Seventh Edith). Pearson Education Inc.
Yahoo Finance. (2024). Economic Sector Performance Dashboards – Yahoo Finance. Yahoo.com. https://finance.yahoo.com/sectors/
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