Taking a longer-term view, growth dramatically outperformed in 2020 and will likely outperform again at some point in the future. I also got a boost from a very risky bet on GameStop (NYSE: GME) that paid off earlier in the year and my crypto holdings, although I didn't factor those into my total return percent. These helped to offset quite a few big losers like Zoom (NASDAQ: ZM), Alibaba (NYSE: BABA), and Roku (NASDAQ: ROKU), down an average of 42%. Despite the overall struggles of growth stocks, I still managed to pick a few winners like Atlassian (NASDAQ: TEAM), ASML (NASDAQ: ASML), Silvergate (NYSE: SI), and Shopify (NYSE: SHOP), up an average of 67% for the year. The "big four" tech companies Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) ( GOOGL), and Microsoft (NASDAQ: MSFT) are up an average of 41% for the year. However, it was a difficult year for growth investing, with the informal growth index ARK Innovation (NYSEARCA: ARKK) down 22% year to date.ĭespite considering myself a growth investor, I still managed to outperform the market by a couple percentage points in 2021 thanks to strong performances from the tech giants.
The indexes performed very well, with the S&P 500 up 26% year to date. Overall, 2021 was a good year for investing. When combined with an index, even 10 stocks can offer a reasonable risk/reward balance. Although just 10 stocks is probably too high risk/high reward for most investors - including myself - making a theoretical portfolio of 10 stocks is a useful exercise for identifying your highest conviction investments. Unusual returns can only come from unusual portfolios.
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