Year-End Review: Embracing Growth and Navigating Setbacks of 2023
As the last trading day of 2023 is concluded, it’s clear that tech and growth stocks outperformed the S&P 500 index. The index closed remarkably, at 24% for the year. It’s noteworthy to think about this, since at the beginning of the year the analyst consensus suggested a close to 70% chance of a recession. I’d be curious to pinpoint when throughout the year the tune started to change.
Now, as we welcome the new year, do you reflect on your past decisions and moves made? Did you make your assessments along the way or did you set your course and forged ahead? We won’t dare to dictate your choices but we’d strongly recommend it. Take a week, gather your thoughts and journal entries. Review the notes and pick a day to simply look over your personal actions throughout the year. What has been working for you and what have you uncovered does not? This could be for any aspect of your life - be it fitness, education, career, family, financial goals, etc. As long as you find your area of improvement or moments stagnation you’ll benefit from this exercise. In this post our directive is to highlight our 2 of our top and bottom open trades in our investment portfolio.
The positions mentioned below are provided for informational purposes. While they’re categorized as winners and losers based on past performance, it's essential for us to view them as opportunities for reflection and learning. Whether celebrating successes or addressing setbacks, each position offers valuable insights into the dynamics of the market.
For us it’s an invitation to reflect on our entry points, evaluate the factors contributing to each outcome, and glean lessons that can inform future investment decisions. Learning from both positive and challenging experiences is a key aspect of evolving as an investor. Whether it's an opportunity to replicate success or an indication to cut losses and pivot to a new trading idea, the continuous learning process is integral to navigating the complexities of the financial market.
Top 2 Best Performing Individual Securities
Ticker Symbol: $COIN - Company Name: Coinbase - 2023 Performance: 385.87%
Coinbase is a prominent cryptocurrency exchange platform that enables users to buy, sell, and store various cryptocurrencies, including Bitcoin, Ethereum, and others. The platform offers a range of services, including a user-friendly interface, secure wallet storage, educational resources, and advanced trading features for more experienced users.
Entry Price: $52.92 - Current Price: $172.15 - Unrealized Gain: 225.30%
Ticker Symbol: $BLDR - Company Name: Builder FirstSource, Inc. - 2023 Performance: 156.46%
Builder FirstSource, Inc. is a leading supplier and manufacturer of building materials and services in the construction industry. The company provides a wide range of products, including lumber, windows, doors, trusses, and other construction-related materials. Builder FirstSource serves a diverse customer base, including homebuilders, remodelers, and contractors.
Entry Price: $127.13 - Current Price: $166.45 - Unrealized Gain: 30.93%
Graph: Blue - S&P 500 Index / Purple - Builder FirstSource / Pink - Coinbase
Bottom 2 Worst Performing Trades
Ticker symbol: $PINS - Company Name: Pinterest, Inc. - 2023 Performance: 52.88%
Pinterest is a social media platform and visual discovery engine designed to discover and save ideas for various interests. Some key points about Pinterest are: Visual Discovery Platform, Pins and Boards, User Engagement, Search Functionality, Business Accounts, Global User Base.
Entry Price: $42.57 - Current Price: $37.17 - Unrealized Loss: - 12.68%
Ticker Symbol: $ORCL - Company Name: Oracle Corp. - 2023 Performance: 28.38%
Oracle Corporation is a multinational computer technology corporation that provides a wide range of software, cloud solutions, and hardware products and services. Some Key points about Oracle are: Database Technology, Cloud Services, Enterprise Software, Hardware Products & Global Reach.
Entry Price: $110.17 - Current Price: $104.90 - Unrealized Loss: - 4.78%
Graph: Blue - S&P 500 Index / Pink - Pinterest / Purple - Oracle
If you were to take a closer look into our current positions, it's becomes clear that each company has beaten the S&P index which currently has a YTD of (blank%). We could use this to showcase the effectiveness of our strategic approach of making good stock selections. However, the juxtaposition of gains and losses within our portfolio emphasizes a critical lesson in market dynamics – timing is extremely difficult. Despite overall positive performance, some positions still fall into the 'loss' category due to less-than-ideal entry points. This underscores the significance of not just being in the market but being in at the right time.
Successful investing is a blend of selecting strong assets, entering the market at opportune moments and holding steady for the long-term. As we mentioned in previous blog posts, “Do your best to avoid overpaying...” Reflecting on all our open positions underscores the importance of timing as a key factor in navigating the complexities of the financial markets. This, coupled with adhering to our trading rules, helps us operate with sound judgement and steering clear of biases that can influence how the funds are invested.
These principles can certainly extend beyond the realm of finances. Just as in the investment world, maintaining a balance between unwavering conviction and the ability to pivot applies to various aspects of our lives. Whether it's personal goals, relationships, or professional pursuits, the core principles of bouncing back from challenges and remaining flexible echo throughout. Embracing these principles allows us not only to weather uncertainties but also to thrive in the ever-evolving landscape of opportunities. So, as we reflect on our investment decisions, consider how you might find resonance in your broader journey.
Don't miss the opportunity to make a significant change in your life. Begin your financial journey this month and unlock the potential of your financial future. At BMG, we're here to help you with any of these key aspects of financial planning.
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Disclaimer: Positions taken any company listed above is in based on our trading parameters. These are not intended to be a endorsement or recommendation for others to buy or sell these stocks. The information provided is for informational purposes only and does not constitute financial advice. At BMG,LLC our investment strategy is guided by a meticulous set of trading parameters and extensive research to ensure the alignment of selected stocks with our portfolio objectives. Any positions taken in the companies listed are a result of a thorough evaluation process, considering various financial metrics, market trends, and risk factors. Extensive research is a cornerstone of our decision-making process. Our team conducts in-depth analyses, utilizing both fundamental and technical analysis tools. This includes an assessment of financial statements, market trends, competitive landscapes, and potential catalysts that may impact the performance of these stocks; Risk Disclosure: Investing in stocks involves inherent risks, and past performance is not indicative of future results. Investors should conduct their own research and, if necessary, consult with a financial advisor before making investment decisions.
