My best and worst stocks in 2020

My best and worst stocks in 2020

In annual tradition I will list my best and worst individual stock performers for 2020. As you can see from the list below which I cut off at only stocks that I have owned that have doubled for me it was a crazy year.

Tesla +720%
CRWD +256%
TWLO +228%
ZM +193%
DDOG + 181%
SHOP 177%
TTD +170%
NET 122%

Obviously Tesla led the pack and I did do some portfolio rebalancing this spring during the pandemic and bought a few new stocks all of which went bananas. Many of them were up more than the figures above, but I only listed the returns since I bought them in March.

Now for my worst stock of 2020.

SBUX +19.73%

Starbucks was up just under 20%. Every single stock that I own beat the market this year. That is absolutely crazy.

Going forward I will look to rebalance my portfolio to be more balanced. My individual stocks have performed so incredibly well and have grown to become a very large proportion of my retirement nestegg. It probably makes sense to sell off some of these stocks and put them in index funds as the risk/reward situation does not really help me much. The only thing that could change my plans is a massive drop so it probably makes sense to diversify my portfolios more. On the flip side one could argue that I have a big enough margin of error that I should just keep moving full steam ahead as even a 50% haircut would not be devastating. It’s easy to think you are smart when the market is at all time highs, but this cannot go on forever and it probably makes sense to take some of the drama/entertainment out of my life.