My Stocks and Shares ISA has exploded in 2024. Here’s what I’m doing now

Zaven Boyrazian’s Stocks and Shares ISA is beating the FTSE 100 and S&P 500 in 2024. Here’s a look at the moves he’s making at the moment.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young mixed-race woman jumping for joy in a park with confetti falling around her

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

2024 has been a great year for my Stocks and Shares ISA. Thanks to some prudent purchases in 2022 and 2023, I can now pat myself on the back as my portfolio has generated almost a 28% total return year-to-date. By comparison, the FTSE 100 is only up around 10%, with the S&P 500 coming in at a more impressive but still smaller 25%.

It’s a wonderful feeling. And one shared by many contrarian investors who capitalised on the bargains of the 2022 stock market correction. However, with so much growth achieved, what am I doing now to try and maintain this upward momentum?

Watering the flowers and cutting the weeds

Despite having 24 stocks in my ISA, almost 65% of my portfolio is concentrated in my top five holdings: Shopify, Arista Networks, Alpha Group International, Intuitive Surgical, and MasterCard. Needless to say, this level of concentration is pretty extreme. And it results in a lot of volatility that most investors wouldn’t be comfortable with.

Should you invest £1,000 in Intel right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Intel made the list?

See the 6 stocks

However, this wasn’t intentional. Instead it was a naturally occurring event as all five companies simply dominated their respective industries.

After such tremendous gains, most investment advisors would advocate selling some shares and reallocating the capital to other businesses. That’s sound advice for ensuring investors stay within their risk tolerance limits while maximising the benefits of diversification.

However, I have the luxury of a 20-year+ time horizon and a strong stomach for volatility. As such, I prefer taking a page out of Peter Lynch’s book and selling my losers rather than my winners.

Bye bye underperformers

Even after the most rigorous research and analysis, not every investment works out. And two businesses I decided to let go of this year were Etsy and Frontier Developments.

Etsy’s initial performance was pretty admirable, thriving throughout the pandemic and into 2021. However, following the economic downturn paired with a seller revolt and surging competition from China’s Temu, the firm just wasn’t delivering. It’s a similar story to Frontier. The games development studio enjoyed terrific momentum that eventually collapsed as new releases failed to impress players over and over again.

Both firms certainly have the potential to bounce back in the long run. But rather than holding onto these weeds, I decided to cut them and reallocate them to plant new potential flowers. That’s how CrowdStrike (NASDAQ:CRWD) became one of the latest additions to my Stocks and Shares ISA.

The cybersecurity giant landed itself into some pretty hot water recently with a botched IT update that crashed millions of devices globally during the summer. But with management rolling out a quick fix and dedicated support staff to help customers restore their systems, it seems the risk of customer attrition has been mitigated.

Despite this, the growth stock still trades at a discount versus July. And while the valuation looks rich, the price seems justified if management delivers on its target of 28%-32% operating margins and up to 38% free cash flow margins.

Of course, that’s far from guaranteed. And if the cybersecurity group fails in its pursuit, then the stock could be in for quite a tumble. That’s why I’ve only opened a small 1.3% position. But should it start delivering on its promises, I plan to continue watering it with fresh capital throughout 2025 and beyond.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian has positions in Alpha Group International, Arista Networks, Intuitive Surgical, Mastercard, and Shopify. The Motley Fool UK has recommended Alpha Group International, Arista Networks, CrowdStrike, Intuitive Surgical, Mastercard, and Shopify. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

At a 52-week low but forecast to rise 73%! Is this growth share the FTSE’s top recovery play? 

This FTSE 100 growth share has taken an absolute beating over the past two years but Harvey Jones says the…

Read more »

Investing Articles

This FTSE 250 share offers a juicy 9.8% yield. Will it last?

This well-known FTSE 250 share has a percentage dividend yield approaching double digits. Should Christopher Ruane add the income share…

Read more »

Investing Articles

Is a £333,000 portfolio enough to retire and live off passive income?

A third of a million pounds can generate a serious amount of passive income, but relying on this sum alone…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing For Beginners

Why FTSE 100 investors should pay attention to ‘Liberation Day’

Jon Smith explains why the upcoming tariff announcement from across the pond could have an impact on the FTSE 100,…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Here’s why Nvidia stock fell 13% in March

The Nvidia stock price rise was looking unstoppable. Should investors now be wondering if the same might be true of…

Read more »

US Stock

It’s ISA deadline week! Here’s my 3-step game plan

Jon Smith tries to calm the hype around the last minute ISA rush to buy stocks and explains why he's…

Read more »

Snowing on Jubilee Gardens in London at dusk
Investing Articles

£10,000 invested in BAE Systems shares at Christmas is now worth…

BAE Systems shares have been surging in the FTSE 100 in 2025, driven higher by the wavering US commitment to…

Read more »

Investing Articles

Up 19% in 2 weeks, can the Tesla share price rebound further?

Tesla's first-quarter delivery numbers came out today. Will they help persuade our writer to invest his money at the current…

Read more »