This portfolio update falls between two earnings reporting cycles, but I wanted to post an end of 2025 update. I intend to continue posting detailed portfolio updates on a quarterly basis, typically after the end of an earnings reporting cycle. For more frequent updates on the portfolio composition, I post regularly on X (formerly Twitter). The posts there can be seen by following @gauchorico. I have also been posting weekly changes to the portfolio’s allocations (which I no longer include in these quarterly updates) on X.
PRIOR PORTFOLIO UPDATES
PORTFOLIO PERFORMANCE
The GauchoRico Growth Stock Portfolio closed 2025 +34.7%, compared to +17.9% for the S&P 500 total return index. The year turned out to be a profitable one.
| DATE | GauchoRico Portfolio (YTD) | S&P500 Total Return (YTD) |
|---|---|---|
| Jan25 | 5.0% | 2.8% |
| Feb25 | -6.5% | 1.4% |
| Mar25 | -19.2% | -4.3% |
| Apr25 | -12.1% | -4.9% |
| May25 | 3.7% | 1.1% |
| Jun25 | 15.1% | 6.2% |
| Jul25 | 19.9% | 8.6% |
| Aug25 | 29.0% | 10.8% |
| Sep25 | 41.8% | 14.8% |
| Oct25 | 46.4% | 17.5% |
| Nov25 | 29.0% | 17.8% |
| Dec25 | 34.7% | 17.9% |
NINE YEARS OF PORTFOLIO TRACKING
Although I’ve been investing since 1992, this year closes out the ninth year of meticulous tracking of the GauchoRico Growth Stock Portfolio. The tracking began at the bottom of my large 2015-2016 drawdown and includes both the 2017-2021 surge (with many big drops during this period) as well as the 2021-2022 decline. As a result, the tracking captured a complete trough-to-trough cycle, plus three additional years (2023-2025) of outperformance relative to the S&P500 (total return) benchmark. Over the full nine years from 2017-2025, the cumulative return for the portfolio is +1383.3% with a CAGR of 34.9%. By comparison, the cumulative return of the S&P500 (total return including dividends) is 255.7%, with a CAGR of 15.1%.
| Year | GauchoRico Return | GauchoRico Cumulative Return | S&P 500 (TR) Return | S&P 500 (TR) Cumulative Return |
|---|---|---|---|---|
| 2017 | +61.6% | +61.6% | +22.8% | +22.8% |
| 2018 | +55.9% | +152.0% | -5.2% | +16.5% |
| 2019 | +41.8% | +257.3% | +31.5% | +53.2% |
| 2020 | +245.6% | +1134.7% | +18.4% | +81.4% |
| 2021 | +27.7% | +1477.3% | +28.7% | +133.4% |
| 2022 | -71.4% | +350.5% | -18.1% | +91.1% |
| 2023 | +33.9% | +503.0% | +26.3% | +141.4% |
| 2024 | +82.7% | +1001.5% | +25.0% | +201.8% |
| 2025 | +34.7% | +1383.3% | +17.9% | +255.7% |
Here are some of the returns of some of the best and most famous investors:
| CAGR | Period | S&P 500(TR) CAGR | Notes | |
|---|---|---|---|---|
| Warren Buffett | 19.9% | 1965-2024 | 10.4% | Berkshire Hathaway |
| Warren Buffett | 30.3% | 1965-1985 | 9.3% | Berkshire Hathaway |
| Warren Buffett | 30.0% | 1965-1995 | 11.1% | Berkshire Hathaway |
| Warren Buffett | 11.0% | 2004-2024 | 10.9% | Berkshire Hathaway |
| Peter Lynch | 29.2% | May 1977-May 1990 | 14.2% (1977 and 1990 used full for S&P 500 | Magellan Fund during Lynch’s tenure |
| Stanley Druckenmiller | ~30% | 1986-2010 | 10.4% | Duquesne Capital |
| Jim Simons | 66.0% | 1988-2018 | 10.5% | Medallion Fund before fees; 1 losing year |
Warren Buffett is arguably the most famous investor of all time. His 59-year track record is legendary, with nearly a 20% average annual return over the entire period. However, as Buffett’s capital compounded significantly, it became increasingly difficult to beat the market (S&P 500). Higher returns can typically be achieved by identifying and investing in smaller, fast-growing companies. As investible capital becomes very large, investments in such companies no longer meaningfully move overall portfolio returns. This dynamic is illustrated by comparing Buffett’s returns grom earlier and later periods. From 1965-1985 and 1965-1995, Buffett’s average return was about 30% (compared to 9.3% and 11.1% for the S&P 500, respectively). During the last 20 years (2004-2024), Buffett’s return was about equal to the S&P 500. In general, Buffett’s approach was to invest in undervalued companies. Many books have been written about Buffett. I would recommend reading The Snowball: Warren Buffett and the Business of Life by Alice Schroeder.
Peter Lynch is another famous investor who managed Fidelity’s Magellan Fund from 1977-1990. His average return during the 13-year period was 29.2%, compared to the S&P 500’s 14.2%. Like Buffett, Lynch was a stock picker, and his methods are described in his two books: One Up on Wall Street and Beating the Street. Both are excellent reads.
Stanley Druckenmiller, another investor with an impressive track record, reportedly averaged about 30% annual returns from 1986-2010. More impressive is that he accomplished this feat without a single negative year. Unlike Buffett and Lynch, Druckenmiller was not primarily a stock picker. Instead, his macro view informed where he placed his bets. While he invested stocks, he also employed futures, currencies, options, bonds, etc.
Jim Simons’ thesis was that achieving superior investment returns could be solved by mathematics and implemented through computer algorithms. His company, Renaissance Technologies, ran the Medallion Fund, which yields an annual mind-blowing average 66% return from 1988-2018! There was no stock picking at all, and humans weren’t involved in the trading decisions. The book The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution by Gregory Zuckerman tells this fascinating story.
The list of famous investors who’ve had spectacular returns is too long to include them all. There are many approaches to investing, not only stock picking. My interests and skills are well suited to stock picking, so I focus on that. I’ve met and become friends with many other unknown and like-minded investors, and, as group, we now work together to find new investments, research stocks, share in our victories, and commiserate over the drawdowns. Such a group is beneficial for sharing the workload, discovering new investments that I’d otherwise miss, exposing my blindspots, better coping with major drawdowns, and making the investing journey more enjoyable.
OVERALL ASSET ALLOCATIONS
The GauchoRico Growth Stock Portfolio now comprises slightly less than 50% of my total assets. The following posts explain my reasons for no longer having virtually all my assets in the Growth Stock Portfolio:
July 2022: When Should the Game Change?
July 2024: How I Changed My Money Game
May 2025: Safe Bucket and Investing for Fixed-Income: What Are the Risks?
Overall asset allocations are as follows:
Growth Stock Portfolio: 49.2%
Fixed-Income Portfolio: 27.2%
Crypto Portfolio: 2.7%
Other Assets: 20.9%
ALLOCATIONS
| 12/31/25 | 11/30 | 10/31 | 9/30 | 8/31 | 7/31 | 6/30 | 5/31 | 4/30 | 3/31 | 2/28 | 1/31 | 12/31/24 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| APP | 24.8%* | 22.3%* | 16.6% | 14.0% | 10.2% | 5.1% | 4.4% | 1.0% | — | — | — | — | — |
| NVDA | 20.2%* | 20.2%* | 21.5%* | 20.0%* | 19.9%* | 27.0%* | 25.4%* | 22.1%* | 20.0%* | 22.2%* | 21.5%* | 16.8%* | 18.1% |
| RDDT | 14.2% | 13.9% | 14.7% | 15.6% | 18.2% | 15.1% | 13.8% | 11.9%* | 9.0% | 8.8% | 2.4% | — | — |
| MELI | 13.9%* | 15.0%* | 13.2% | 13.7% | 15.8% | 15.4% | 19.6% | 21.3% | 22.1%* | 21.2% | 21.2% | 19.3% | 17.4%* |
| AXON | 13.1% | 13.1% | 13.9% | 12.9% | 13.5% | 13.8% | 14.7% | 16.8% | 15.6% | 15.7% | 13.3% | 11.1% | 10.6% |
| IREN | 8.3% | 11.0% | 11.6% | 9.0% | — | — | — | — | — | — | — | — | — |
| ALAB | 8.3% | 8.2% | 3.0% | 3.2% | 3.3% | 2.5% | — | — | — | — | — | — | — |
| AMZN | — | — | 4.3% | 9.2% | 14.3% | 14.4% | 13.1% | 13.1% | 13.4% | 15.0% | 12.2% | 11.8% | 11.4% |
| SNOW | — | — | — | — | 2.0% | 1.9% | 2.7% | 2.6% | 2.3% | 2.3% | 2.3% | 2.1% | 1.9% |
| GOOGL | — | — | 1.2% | 1.1% | 1.0% | 1.0% | — | — | — | — | — | — | — |
| SEZL | — | — | — | — | — | 3.9% | — | — | — | — | — | — | — |
| TSLA | — | — | — | — | — | — | 2.6%* | 8.4%* | 6.2%* | 6.1%* | 19.5%* | 25.7%* | 27.3%* |
| IOT | — | — | — | — | — | — | — | — | 1.1% | 1.1% | — | — | — |
| ROOT | — | — | — | — | — | — | — | — | 4.1% | 4.3% | 5.1% | 6.7% | 5.3% |
| BORR | — | — | — | — | — | — | — | — | — | — | 0.9% | 1.1% | — |
| ASPN | — | — | — | — | — | — | — | — | — | — | — | 5.3%* | 5.8%* |
| Cash | -2.7% | -3.5% | 0.2% | 1.2% | 1.7% | 0.4% | 4.0% | 3.4% | 6.6% | 4.8% | 2.2% | 0.4% | 3.3% |
The allocation details described below are as of December 31, 2025. Three of the seven positions (shown with an asterisk) in the portfolio are leveraged with long-term call options. APP: Of the 24.8% position, 20.6% is in shares and 4.2% is in Jun2027 $600 call options. MELI: Of the 13.9% position, 13.0% is in shares and 0.9% is in Jan2028 $2000 call options. NVDA: Of the 20.2% position, 14.3% is in shares and 5.9% is in Jan2027 $125 call options, Dec 2027 $170 call options, and Dec 2027 $185 call options. The portfolio composition includes 91.8% shares, -2.7% cash, and 11.0% long-term call options.
PORTFOLIO CHANGES
My last portfolio update was on 30Nov 2025. While I no longer report detailed changes in my portfolio updates, I continue to post weekly portfolio allocation changes including buys, sells, and conversions between shares and LEAPS on my X account: see @gauchorico.
EARNINGS RESULTS
There were no earnings results since my last portfolio update. The next earnings reporting cycle for the portfolio companies is expected between 5Feb and 25Feb. My methodology for making earnings date predictions can be found in this post. Below are the predicted earnings dates for the companies in the portfolio:
IREN: 5Feb (estimated)
ALAB 9Feb (estimated)
APP 11Feb (estimated)
RDDT 11Feb (estimated)
MELI 19Feb (estimated)
AXON 24Feb (estimated)
NVDA 25Feb (date confirmed by NVDA)
FINAL THOUGHTS
Happy New Year. The signals point to a strong continuation of the AI infrastructure buildout in 2026, and the portfolio is weighted heavily toward that outcome. In addition, all positions are growing top line revenue more than 30%, with some companies growing more than twice that. Without any major catastrophes or major geopolitical disturbances, I’m optimistic that 2026 will be another solid year for the portfolio.
The opinions, thoughts, analyses, stock selections, portfolio allocations, and other content is freely shared by GauchoRico. This information should not be taken as recommendations or advice. GauchoRico does not make recommendations and does not offer financial advice. Each person/investor is responsible for making and owning their own decisions, financial and otherwise.