Why I Plan to Buy More of My Top 5 Stocks of 2020
In spite of the odds at the onset of the pandemic in March, I've had plenty of winners -- some of them up triple-digit percentages in 2020. I learned early on in my career that it's often best to buy more shares of a winning investment, rather than selling it for a profit. I plan to do the same with my top five performers this past year: Etsy (NASDAQ: ETSY), Square (NYSE: SQ), Redfin (NASDAQ: RDFN), Appian (NASDAQ: APPN), and The Trade Desk (NASDAQ: TTD). Here's why.
First, before I delve into the businesses themselves, you should know that I'm young (I just turned 34), I have no plans to touch my investments for many years (hopefully decades), and I contribute to my accounts on a monthly basis. I thus have a higher penchant for risk taking than many -- meaning I don't get too hung up on short-term performance, even if a stock goes wild either up or down.
All five of my top-performing investments this year would be considered "expensive" by traditional valuation metrics, although they have been that way for some time. After an epic run this past year, perhaps a day of reckoning looms. I'm fine with that. Unless my original reasons for buying disappear (or a stock becomes well over 5% of my portfolio's value), I'll keep buying more on the inevitable dips in share price.
Source Fool.com
