The SPY's annual “Lessons Learned” edition aims to enhance your investing success in the years to come. This strategy clearly delivers results, as it outperformed the S&P 500 (SPY) again this year. Dive into the details below to learn more.
Today marks one of my favorite traditions—the annual “Lessons Learned” edition. It’s a time to reflect on the past year, discussing the highlights, challenges, and lessons that can guide us toward better outcomes in the future. Let’s dive right in.2024 Lessons Learned
2024 was an exceptional year for investors, the kind you hope for. The bull market felt undeniable, allowing us to focus on tried-and-true stock-picking strategies that led to consistent outperformance.
As of today, the Reitmeister Total Return portfolio is up +24.59%. While December was a challenging “Risk Off” month that trimmed gains, especially for small caps and rate-sensitive stocks, our portfolio weathered it better than most. Consider these broader market comparisons:
- Equal Weighted S&P 500 (RSP): +10.84%
- Russell 2000 (Small Cap Index): +9.90%
This means we delivered more than double the returns of the average investor.
Our success stemmed from careful stock selection, with 74% of trades ending in profit (32 of 43 closed positions). Notable wins included:
- GoDaddy (GDDY): +79.76% from March to November
- EME: +72.31% in just three months
- FFIV: +49.65%, still a top performer
Among tactical trades, the highlight was a swift 13% gain on TZA (3X short small caps) in July, as election concerns triggered a seasonal pullback. Conversely, our biggest miss was NICE, which dropped 20% amid Middle Eastern tensions. While painful, exiting the position minimized further losses.
Key Takeaways
This year wasn’t about uncovering groundbreaking lessons but rather reinforcing enduring principles:
- Diversification Matters: Balancing across market caps, sectors, and styles (growth vs. value) mitigated risks and provided steady gains.
- Trust the Process: The POWR Ratings system consistently identified strong, fundamentally sound stocks. With a 74% win rate and only two trades losing over 10%, its value was undeniable.
Looking Ahead
As we approach 2025, the outlook suggests modest market returns. Whether we see slight gains or even a small loss, the focus remains on leveraging POWR Ratings for stock selection and outperforming broader indices. Financial Learning Models (FLMs) Sergey Savastiouk, Ph.D., CEO of Tickeron, emphasizes the importance of technical analysis in managing market volatility. Through Financial Learning Models (FLMs), Tickeron integrates AI with technical analysis, allowing traders to spot patterns more accurately and make better-informed decisions. Beginner-friendly robots and high-liquidity stock robots offered by Tickeron provide traders with real-time insights, enhancing control and transparency in fast-moving markets.