Advances in artificial intelligence (AI) and the excitement around their potential drove the stock prices of some of the biggest companies in the world higher in 2024. But not every AI innovator was a big winner.

Rather than focusing on quarterly earnings beats or temporary market sentiment, my investment strategy centers on identifying companies that can compound value over many years or even decades. While many view the current AI boom skeptically,

Palo Alto Networks must execute well in a competitive market. Learn why PANW stock’s pricey valuation leads to a cautious outlook until a better price is found.

Even though Tesla stock soared last year because of the potential of its FSD technology, EV sales still account for 79% of the company's revenue. Therefore, if this part of its business isn't performing, it becomes hard to justify further upside in its stock price (more on that later).

The S&P 500 (SNPINDEX: ^GSPC) is home to 500 companies from 11 different sectors of the economy, making it the most diversified of the major U.S. stock market indexes. The S&P 500 delivered a return of 25% during 2024,