2025 multibaggers
Multibaggers are companies that have huge potential and return multiple times the initial investment. All investors hope to own multibaggers, but they’re hard to come by.
In 2024, we released our first multibagger portfolio. In this blog post, we’ll look to re-balance it for 2025.
The 2024 portfolio
Our 2024 portfolio had a return of 38%, which beat the S&P500 return of 25% by a solid margin.
Our top gainers were $NVDA and $AVGO, with +181% and +126% respectively, with the biggest loser $MBUU at -29%.
The portfolio was started with an equal $1000 investment spread across the 10 selected companies.
You can see the full list and performance in the pevaluator portfolio page below:
2025 portfolio goals
For the 2025 portfolio, we’ll focus more on quality. The market is expensive by all relevant metrics, however this doesn’t mean bargains can’t be found - we just need to know where to look.
Our goal for 2025 is to beat the S&P500 again, while also keeping a sense of security in the event of a downturn.
We’ll cut some of the overvalued companies, while also getting rid of the lower-quality ones, or ones that don’t align with our goals.
Cut positions
We’ll cut the positions in $LOVE, $SBUX, $SWKS and $PYPL. Our PayPal investment was a very good one in particular, returning 56%, however it’s outgrown its valuation so those funds are better invested elsewhere. Our investing philosophy is to separate the stock from the company - we can like a company, and yet think it’s overvalued. We’ll also cut $MBUU - while it seems undervalued, we personally believe the discretionary spending factor in the business is an extra risk going into 2025.
Full list of cut positions:
$PYPL - 56% gain
$LOVE - 5% gain
$SBUX - 2% gain
$SWKS - 6% loss
$MBUU - 29% loss
Total proceeds: $5276 (5.5% return).
New positions
There are a number of companies we’ve looked at, but we’ll focus on quality coupled with potential return.
Companies just missing out due to valuation concerns (note that this doesn’t mean the company won’t go up - it just means that based on the model we believe there’s a lower chance that they’d outperform our other picks) include $AMZN, $NFLX, $CRM, $V and $MA. These are amazing businesses with incredible potential.
Our 5 new picks are:
1. AMD
$AMD underperformed other semi stocks in 2024 but our conviction with the stock is strong. It’s expected to grow massively and we believe the price action doesn’t reflect the fundamentals.
2. Adobe
Much like AMD, Adobe isn’t a stock that got a lot of love last year. There are concerns that A.I. might have a negative impact on the business, but there are also voices that say it can actually help the business. Even if it doesn’t, the company is underpriced and can be a solid investment.
3. Uber
Similar to Adobe, Uber can either benefit from FSD, or it can be its downfall. Fundamentally it looks like a solid business that is just under-appreciated by the market.
4. Crocs
$CROX has gone as high as $160 in 2024 and then back to $100, with no real reason behind it. In fact, the fundamentals show just the opposite - a healthy, growing business, with increasing margins and returns, that is buying back cheap shares. Even a very pessimistic scenario puts its DCF value at around $180.
5. InMode
$INMD is our wildcard pick for 2025. Normally not a company we’d look at, it boasts an incredible balance sheet - the current price is basically double the net cash that they have. We’re adding it because even at its current $17 it looks undervalued, but considering the balance sheet the $17 basically cost around $9. This is both an asset and value play for us.
New positions:
$AMD - 8.6 shares @ $116
$ADBE - 2.5 shares @ $420
$UBER - 16 shares @ $62
$CROX - 10 shares @ $100
$INMD - 60.6 shares @ $16.5
