My 2024 stock portfolio
"A great business at a fair price is superior to a fair business at a great price."
― Charlie Munger
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To ring in the new year (a little late), I have updated my stock portfolio for 2024. Note: if you already use my M1 portfolio it will not auto-update and you will need to follow manual steps listed at the end.
In 2023 my predictions were:
My best guess for 2023 is that the financial markets will remain extremely volatile but ultimately flat, with a slight possibility of an increase. With higher interest rates, there is a large focus on value and operational efficiency. The US economy overall is still very strong, with record low unemployment rates and high consumer confidence. That is not to say that inflation has been tamed. I suspect there will be an acceptance of higher costs, as the labor market will be incredibly tight for the next decade due to baby boomers retiring, and overall de-globalization. Despite these challenges, I remain optimistic about the US economy.
In 2023, we witnessed a significant difference between companies that had strong fundamentals vs those that did not. I don’t know when all the money we printed will come back to bite us but, for now, the US economy remains resilient. 2024 from my perspective will largely be similar to 2023 — those companies that have good fundamentals will continue to grow; those with lofty valuations and lack of fundamentals will get crushed.
My 2024 portfolio
Active investors statistically perform worse than passive investors. No one can time the market. That’s why majority of my portfolio follows the QQQ index, which contains the Top 100 of Nasdaq stocks including top tech companies (FAANG, etc). Because it’s a weighted index, well-performing stocks become a larger percent of the pie and those that decline fall out.
My basket of stocks contains:
The top 75% of QQQ with a few filtered out (too much debt, etc)
A few handpicked stocks across the technology sector that make up the remaining 25%.
My secret is simple: I buy every week. Consistency hedges against timing the market.
I also recommend you check out my personal finance guide: 101.finance.
If you already use my portfolio, below are some steps to update it:
Go to the link, make sure you’re logged in and click ‘Save to my account’
Then go to your M1 app, click ‘Manage pie’ -> ‘Edit pie’ -> ‘+’ Button
Go to the ‘My Pies’ tab, select ‘Safeer’s 2024 Portfolio’ and ‘Done’
Adjust the 2023 Portfolio to 100% and remove the old portfolio
It’s possible that M1 may produce a taxable event when updating it in this matter. I have provided the changes below if you’d like to manually update your pie.
Safeer
Meta removed?