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History Says the Nasdaq Could See Strong Gains in 2025: Here Are the Top Nasdaq Stocks From Warren Buffett and Bill Ackman Going Into the New Year

Eli GrantMonday, Dec 23, 2024 5:10 am ET
4min read


The Nasdaq Composite Index has a history of strong performance following significant gains, and 2024 was no exception. With a 30% or greater increase, the index has risen in 11 out of 13 years in the following year. As we approach 2025, investors are wondering if the Nasdaq's historical pattern will continue. Two prominent investors, Warren Buffett and Bill Ackman, have significant stakes in Nasdaq-listed companies, which could provide insight into the market's trajectory.

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has a substantial investment in Apple, which is the largest holding in his portfolio. Apple's strong brand, innovative products, and robust capital-return program have made it a favorite among investors. Buffett's continued investment in Apple suggests that he believes the company will continue to perform well in the coming year.

Bill Ackman, the founder and CEO of Pershing Square Capital Management, has a significant stake in Alphabet, the parent company of Google. Alphabet's dominant position in the search engine market, along with its investments in artificial intelligence and other cutting-edge technologies, makes it an attractive investment. Ackman's confidence in Alphabet indicates that he expects the company to continue growing and generating value for shareholders.

Both Buffett and Ackman have a history of successful investing, and their portfolios have benefited from the Nasdaq's historical trends. Their long-term investment strategies and focus on quality companies have contributed to their success in the Nasdaq market. However, investors should not blindly follow their investments, as billionaires can make mistakes, and the Nasdaq's historical pattern may not always hold true.



To better understand the potential for strong gains in the Nasdaq in 2025, it is essential to consider the factors that have driven its performance in the past. Technological advancements and innovation have been significant drivers of the Nasdaq's long-term growth. The index is heavily weighted towards technology stocks, which have seen a 30% or greater gain in 13 out of the past 52 years. In the year following such gains, the Nasdaq has risen 11 out of 13 times, indicating a strong historical trend.

Geopolitical factors and global economic trends can also impact the Nasdaq's performance. The rise of Chinese electric vehicle manufacturers like NIO and Xpeng has affected the Nasdaq, with their stocks surging in 2024. Additionally, the U.S.-China trade war and Brexit have caused market volatility, affecting the Nasdaq's performance. However, the Nasdaq's resilience and the tech industry's growth potential suggest that it can overcome geopolitical challenges and continue its upward trend in 2025.



In conclusion, history suggests that the Nasdaq could see strong gains in 2025, with a 30% or greater increase in 13 out of 19 years since 1972, and the index rising 11 out of 13 times in the following year. Warren Buffett and Bill Ackman's top Nasdaq stocks, Apple and Alphabet, respectively, indicate their confidence in the market's potential. However, investors should maintain a balanced perspective and consider alternative opportunities when evaluating market trends. The Nasdaq's historical pattern may not always hold true, and billionaires can make mistakes. By staying informed and adaptable, investors can position themselves to capitalize on emerging opportunities in the Nasdaq market.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.