The Magnificent 12 GARP Portfolio Beats The Magnificent 7 Fuelled S&P 500 In 2024

Dale Roberts
13.75K Followers
(8min)

Summary

  • In 2023, I crafted a GARP-focused U.S. stock portfolio to balance growth and valuation, avoiding the high valuations of the Magnificent 7 and the market.
  • The 12 Conviction Picks from mid-2023, including Wells Fargo, Berkshire Hathaway, and Dick's Sporting Goods, outperformed the S&P 500 with a 36.96% CAGR.
  • Despite a slight dip in 2024, the portfolio still beat the market by 6%, driven by financials, healthcare, retail, and industrial sector stocks.
  • 6 other stocks identified in June 2024 have outperformed the market and the conviction picks.

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In 2023, I was asked to put together a U.S. stock portfolio for the times. How do we grab enough growth while side-stepping the extreme valuation of the cap-weighted U.S. market? Over the last decade or more, the U.S. market has been driven by

This article was written by

13.75K Followers
Dale Roberts is the Chief Disruptor at the Cut The Crap Investing blog. Cut The Crap will introduce Canadians to the many sensible low fee investment options in Canada. Canadians currently pay some of highest investment fees in the world. Dale will help Canadians on the path to creating their own low fee portfolios or direct them to the lower fee managed portfolio solutions. Dale was a former Investment Funds Advisor and Trainer at Tangerine Investments, and is a still recovering former award-winning advertising writer and creative director. Dale has been writing on Seeking Alpha from 2013, covering asset allocation, dividend investing and retirement. As always past performance is not guaranteed to repeat. You should always conduct your own research or speak to a financial advisor. If you don't know what you're doing, don't do it. Dale's articles are not investment advice.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TD, RY, AAPL, BCE, TU, ENB, TRP, CVS, WBA, RTX, CARR, OTIS, MSFT, MMM, CL, JNJ, QCOM, MDT, BRK.B, WMT, ABT, BLK, NKE, PEP, LOW, TLT, GMET, BATT, FRHLF, GLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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