My Top 10 Stocks to Buy in 2025 Are Beating the Market by 8 Percentage Points. Should You Buy Them for 2026?

Core Insights - The selected stocks have outperformed the S&P 500 by 8 percentage points this year, with a total return of $12,754 compared to $11,770 from the index fund for a $1,000 investment in each stock [1] - Over the past three years, the selected stocks have significantly outperformed the S&P 500, yielding a return of $33,385 versus $16,990, representing a 235% increase compared to the S&P's 69% [5] - Short-term stock price fluctuations are viewed as potential buying opportunities rather than threats to long-term investment theses [5] Company Performance - Amazon: Strong growth across all business segments with significant AI opportunities, but currently trailing the market due to competition concerns and high AI spending [9] - American Express: Performing well despite spending pressures, targeting affluent clients who are less affected by inflation [10] - Carnival: Strong performance this year, but concerns over debt have led to mediocre stock performance; potential for outperformance if debt is reduced [12] - Dutch Bros: Had a fantastic year but is considered expensive, which may lead to underperformance until growth is reflected in the stock price [13] - Lemonade: A surprise winner with potential for continued growth if it achieves profitability based on adjusted EBITDA [14] - Global-e Online: Despite being the biggest loser on the list, it reports high growth and reached net profitability earlier than expected, presenting a buying opportunity [16] - MercadoLibre: Continues to be a reliable market beater with strong growth in e-commerce and fintech [17] - Nu Holdings: Capturing market share and expanding into new regions, with potential for further growth after applying for a U.S. bank charter [18] - On Holdings: Down this year due to reliance on China for production, but continues to report high growth with long-term opportunities [19] - SoFi Technologies: Impressive growth with innovative product launches, appealing to younger customers and benefiting from lower interest rates [21]