It has been a booming year for the stock market, and some experts predict the excitement will continue for a while. But, of course, some companies saw losses and/or lost their place in the portfolios of investors.
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Many savvy investors got rid of select stocks in 2024 as part of their long-term investment strategy.
“Sometimes, the smartest investment move isn’t about what you buy,” said Kevin Connor, founder and CEO of Modern SBC, and someone who dumped several (unnamed) stocks this year. “It’s about knowing when to say, ‘It’s not me, it’s you.'”
Here are seven stocks that investors told GOBankingRates they dumped in 2024.
Walgreens
It recently became apparent to Jermal Chandler, an options trading expert and live show host at tastylive, that Walgreens wasn’t, in his opinion, suitably advancing as a corporation. In 2024, he sold his shares in the company.
“I sold Walgreens (WBA) stock this year because it has become evident that the 100+ year old company has been reluctant to change their strategy and is far behind the times,” Chandler told GOBankingRates.
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MSOS (AdvisorShares Pure US Cannabis ETF)
Michael Martin, vice president of market strategy at TradingBlock, sold off his MSOS (AdvisorShares Pure US Cannabis ETF) in 2024 after realizing that his hopes around a more growth-friendly cannabis industry were unrealistic.
“Like many investors, I had hoped that cannabis stocks would be reclassified by government agencies, allowing these companies to access additional financing and grow,” Martin said. “However, it became clear that the momentum I anticipated wasn’t materializing. Despite some positive signals, like discussions around rescheduling marijuana under the Controlled Substances Act, the regulatory changes needed to unlock the industry’s potential remained elusive.”
ABC Tech
“ABC Tech was one of those stocks that excited me before,” said Kraig Kleeman, founder and CEO of The New Workforce. “Artificial intelligence? That’s true. A big vision? That’s true. But over the months, the company has failed to deliver on its promises. Product launches have been delayed, competitors have outpaced them, and — this was the big wake-up call — the management team didn’t seem particularly interested in addressing these issues during earnings calls.”
Kleeman added: “When management avoids the tough questions, it’s usually time to rethink things.”
GreenFuture Energy
At first Kleeman admired GreenFuture Energy as a player in the renewable energy sector, but his dedication to the company faded when it became clear the company was having financial issues.
“Rising interest rates have severely limited their ability to finance new projects, and the company’s debt has become a real problem,” Kleeman said. “Add in global supply chain issues and suddenly the future doesn’t look so green.”
Since dumping GreenFuture Energy, Kleeman has shifted his focus to larger, more established renewable energy companies. NextEra Energy is one he’s particularly drawn to.
“They have the resources and stability to weather economic storms while benefiting from the long-term transition to cleaner energy,” he said.
Global Retail Co.
Retail, as Kleeman put it, is “a real roller coaster.” Initially, Global Retail Co. seemed like a safe bet, but in time Kleeman began to question that.
“While other retailers have increased their efforts to sell online, Global Retail has continued to invest in physical stores,” Kleeman said. “Its latest earnings report showed a sharp decline in same-store sales, and that was the signal for me to leave.”
Urban Mobility Inc.
“Urban Mobility Inc. was my ‘why not’ investment,” Kleeman said. “Carpooling, electric scooters: It all sounds futuristic and cool. But what’s cool doesn’t always pay the bills. The company finds itself facing one regulatory headache after another, and its operating costs weigh on any chance of turning a profit. When user growth started to slow, I knew it was time to end this business.”
Big Pharma Holdings
Kleeman thought of Big Pharma Holdings as a wild card in his portfolio that, for a while, looked like a winner.
“They had a promising pipeline of drugs, but as the year went on, regulatory hurdles began to pile up,” Kleeman said. “Approval times continued to slip and their R&D spending spiraled out of control with little result. At some point, you have to stop waiting for potential and start looking for results.”
Saying Goodbye to an Investment
It’s easy to dump a stock, but not necessarily easy to stomach. If made wisely, the decision to break up with an investment is heavy with contemplation. It’s also a symbolic goodbye to a particular financial dream.
“Similar to numerous investors, there are instances when I am cautious about selling holdings due to the speculation of a potential reversal in their performance,” Connor said. “Nonetheless, I have come to rely on both my intuition and the empirical evidence to guide my decision-making process. When the basic principles cease to align, retaining the current position is not an act of optimism but rather indicative of wishful thinking.”
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This article originally appeared on GOBankingRates.com: I’m an Investor: Here Are the Stocks I Dumped in 2024
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
