2024 Portfolio Review | Investing Show with Simon Severino
Reviewing my portfolio's performance for 2024 and looking ahead to 2025
Sprinters I hope you had a wonderful holiday and did lots of fun activities and adventures with family and friends. As always, let’s reflect on what worked and what didn’t.
I pinch myself a lot, how blessed I am with a portfolio that made 30.31% in a very turbulent year. How much was luck, how much is repeatable from here? 11 companies and 1 commodity took us through 2024. I plan to add one company in 2025.
The 2024 market was a rollercoaster with fears of inflation reigniting, the US presidential election, SAAS sell-off, the Japanese carry trade unwinding, and the Federal Reserve cutting rates for the first time since 2020. With all of that behind us, the portfolio stayed strong through it all.
In this letter I will share my 2024 portfolio performance, the 11 companies I own going into 2025, and my plan for 2025. If you find these insightful make sure you subscribe to the investing show for weekly videos. If you want our real-time trade alerts join our community. Now let’s dive in:
2024 Performance
In 2024, the portfolio returned 30.31% outperforming the S&P 500’s return of 24%. While many portfolio managers take that as the key metrics, I couldn’t care less. I invest only my own money, not other people’s money. The only metric I care about is the total USD amount of the overall portfolio. We are at $1.146.401 and on track to double every 5 years.
Mistakes Biggest mistake was having high volatility and high risk without having a structural downside protection. This is going to change from here. Our standards are higher now. What got us from 50K to 1M is not what will get us to 6M. The heavy lifting was done by high-risk, high-vol swing trades of around 4 years each. Luck was a big factor, as I didn’t know what I didn’t know. The more I study valuation methods and financial reports, the more I realize I was swimming naked, and the water level was friendly. But what happens with a high-risk, high-vol portfolio when the water dries up? Over the next 12 months, we are going to reduce the volatility and the risk in the portfolio. Aiming for 15% CAGR and cash protection via conservative options. I love listening to audiobooks on my morning runs. And since I run daily, I heard many in 2024. By far the best has been “What I learned about investing from Darwin”. The last chapter hit home hard. He describes how the honeybees solve big complex problems with a simple, 3 steps process. I stopped my run, and wrote asked myself what our 3 steps can be, if we maximally simplify it. Here they are:
My Current 11 Companies
The current 11 companies have strong pricing power, disciplined financial management and room to grow. We bought a lot of Sanlorenzo during November 2024 as the fundamentals were strong and the price was weak. We bought even more in December 2024 as Massimo Perotti, CEO of Sanlorenzo bought more, which had rarely happened before. Here our rapid quality score for Sanlorenzo (10/10):
My Plan for 2025
Plan is to scale out of our commodity position (BTC) at 2% per week. And reinvest all profits into 12 high quality companies. How do we define high quality?
The allocation (spot) for these 12 companies will be 70%. While 30% will be in dry powder (conservative options and a short-term german bond). Having that 30% dry powder ready will come handy when the recession comes, totally unknown when, but very likely it will at some point.
And maybe add 1-2 companies that I am watching right now. We were very lucky 2012-2024 to have such strong markets, which made it “easy” for us to double every 3.8 years (20% CAGR). But I do not expect this performance for the next 10 years. I expect a lower CAGR (15%) that we will reach with a mix of 70% spot holdings, and 30% conservative options. The plan will be to reduce risk even more (30% conservative options). And to hold onto winners as long as possible, so they can compound. The plan is unchanged:
My Watchilst I shared my watchlist today with members of our community. There is one company that is a cash machine and currently undervalued. I will buy as soon as the trends reverses. That can be this week, this month or this year. Community members will get informed in real-time here.
New Buys I plan to add 1 company to the portfolio in 2025, making it 12 companies in total. Community members will be informed in real-time here. They will also get weekly trainings on valuations and conservative options, so their downside risk is minimized while we aim for 15% CAGR. To an abundant 2025 full of adventures, fun and compounding!
Simon Severino
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IDEAS+LEADERS Founder | Executive Communication & Leadership Development | TEDx-er | SGH Professor | Book Author | Podcaster
2wGreat review!
International Multi-Award Winning Leadership Impact Catalyst: Enabling Leaders and Organisations to navigate complexity and drive impact. | Consultant | Trainer | Mentor | Speaker | Strategist +44 (0) 7757 898 353
2wGreat insights yet again! Simone Severino CSC
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2wGreat insights from this recap!
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2wGreat recap
I need to start to channel you. I'm going to make it a priority this year.