My 12 Top Stock Picks for 2025 - Mid-Year Performance Review
What worked, what did not and why
Back in late 2024, I picked out 12 stocks (some I owned, some I did not) that I felt had big potential heading into 2025.
We are now 6 months into 2025, and it is time to review how these stocks have performed and where they stand at mid-year. For the purpose of this exercise, I will change any names and I will continue tracking this original selection through to the end of 2025.
And without further ado, let’s dive in!
Overall performance
The average overall return of these 12 picks stands at +23.5%, significantly outperforming the S&P 500’s +4.96% over the same period.
Stock performance
Stock by stock here are the performance since January 1st
Adobe -13.43%
Adyen +9.71%
Applied Materials +12.85%
General Dynamics +10.59%
KLA corporation +43.30%
Mercadolibre +50.56%
Merck&Co -20.76%
Paxman +23.48%
PDD +8.40%
Shift4 payments -5.36%
Transmedics +110.83%
Uber +51.74%
Analysis
Several of the outperformers( including KLA Corp, Applied Materials, PDD, Adyen, and Uber) are directly or indirectly benefiting from the ongoing wave of investment in AI and digitalization. Meanwhile, TransMedics and Paxman reflect a broader market appetite for healthcare companies introducing novel technologies into clinical practice.
MercadoLibre and PDD also stand out as clear beneficiaries of the resurgence in emerging market consumer demand, particularly in digital commerce and fintech.
Together, these companies are riding strong structural tailwinds that position them well to continue outperforming in the years ahead. Notably, many of them exhibit the core attributes I look for in a stock: expanding market share, improving margins, and a growing competitive edge.
That said, if I were adjusting the portfolio today, I might reconsider a few positions:
Applied Materials due to signs of diminishing competitive advantage in its segment
Merck&Co, which I already exited earlier this year after a disappointing quarterly performance
General Dynamics, which lacks the high-growth potential needed to consistently outperform the broader market
However, for the sake of consistency and tracking, I will not make any changes now. I will continue to monitor the full performance of this basket as originally selected at the start of the year, in line with the goals of this exercise.
Nice work