Top Assets To Hold in 2025
373: Defense, AI, Tech, Ag, Crypto and More
Morning guys.
As a follow up to the Top Assets to Hold in 2024 post, I wanted to get this out early this year, with a heavier emphasis on stocks. New episode of Risk On this week as well.
Everyone has their own personal choices when it comes to investing. While I haven’t abandoned the tried and true index fund/ETF route entirely, given I am under 35 and a bit more risk tolerant, many of my allocations currently are in higher reward sectors/classes like tech, AI, defense, and crypto.
I am incredibly bullish on these spaces not only this year but all the way through 2030. This is not some novel viewpoint, but I think it’s a good reminder for many younger people to take to heart.
In line with some of my posts last year about “making it” or “outpacing” inflation and higher costs — we’re going to focus on assets and names that I think can generate outsized returns. 8% isn’t going to cut it anymore and while that might be acceptable in a retirement fund or much longer term portfolio, the emphasis today is going to be on things I think can do much better.
Little background on me — I spent the first 4-5 years of my career in sales/trading but my experience with equities professionally is limited. The bulk of my experience outside that has been in data and tech with a large amount of my spare time spent studying crypto. I’m not a former portfolio manager or investment banker — I’ve focused on running my business and identifying assets that I know provide the opportunity for outsized returns compared to rudimentary index investing or more classic styles of longer term stock/bond allocation.
I was a relatively early investor in crypto and Bitcoin primarily has proven to be the true game changer in my net worth and overall financial portfolio. Because of this, I’ve become more and more interested in concentrating my risk on portfolio in tech/AI and other bleeding edge sectors.
Many of my crypto and equity calls over the course of the last 4 years or so have done insanely well including NVDA 0.00%↑ PLTR 0.00%↑ COIN 0.00%↑ RTX 0.00%↑CHWY 0.00%↑ and BTC, LINK, PEPE, and AAVE on the crypto front.
NVDA 0.00%↑ and Bitcoin specifically are probably my two best calls in my entire time investing, ironic that I’ve held the two of them for the longest time period as well.
Of course it would be disingenuous of me to only talk about winners — our gun/ammo bets didn’t really pay off in the last election and there were a few flops from 2023/2024 including Albemarle and AstraZeneca.
And of course I need to provide the usual disclaimer here — always do your own research, don’t over-invest (invest money you absolutely need), and understand that this is meant to be an idea generation post, as I have done in previous years. I’d be remiss and Michael Burry would be mad at me if I didn’t mention the possibility of a larger pullback as well (which would hurt everything). While I’m hopeful we avoid that this year — it’s always possible. If that looks to be on the near horizon we will of course address it.
Nobody is a perfect oracle in stock picking or crypto markets, or any asset class for that matter. It is impossible to be right on everything.
But directionally I would say more often than not — Arb Letter has a very solid track record and I appreciate those of you who have let me know how I have helped over the years.
I think the last few years have proven that the game has changed a bit — we’ve had multiple major shake ups in financial paradigms and markets. The GameStop/AMC debacle, the Covid money printer, the rise of meme coins, the steady growth of crypto, parabolic stock runs powered by lofty valuations, the stagnant small cap landscape, frustrated value investor, and logic defying market moves that leave professional money managers at a complete loss for words.
The most entertaining outcome seems to have become the most plausible in many instances. Psychology, while always a pivotal part of investing seems to be even more impactful on what happens and when.
Now as much as I would love to just say buy Bitcoin today (Bitcoin returned 120% in 2024) we’re going to cover 9 core assets/stocks/crypto projects/tokens that I think are going to crush it in 2025 and beyond. I will throw some others in there as well as periphery picks so in reality we’re going to talk more than 9.
While Wall Street and the big boys eagerly await the Fed’s direction this year and hold their breath every-time Trump mentions tariffs, I think the party is going to continue and even think we could get a situation in which the good ole money printer might get fired up again — which would be 2020 all over again, but this time it would be even more insane with AI, meme coins, and crypto.
Bottom line — 2025 is going to be a year full of opportunity and for many, if they play their cards right, it could even change their life permanently if they pick the right horses and remain patient.
Let’s get into it starting with one of my favorites.
C3.ai ($AI)(Artificial Intelligence)
Trading at $35 (52 Week Range - $18 to $45)
C3.ai (AI) is a pure-play enterprise AI software company that provides AI-powered applications for industries like defense, energy, healthcare, and finance. With the rapid adoption of AI across enterprises, C3 benefits from companies looking to integrate AI-driven predictive analytics and automation into their operations.
The company has strong partnerships with major players like Microsoft and Google Cloud, giving it an edge in AI deployment at scale. While the stock has been volatile, the long-term upside lies in the growing demand for AI solutions in traditional industries that need operational efficiencies and automation.
C3.ai was one of the more recent AI names I bought alongside BigBear AI BBAI 0.00%↑ — with the Trump admin firing on all cylinders and the parabolic run of PLTR 0.00%↑ I think defense/AI plays are going to continue to expand in 2025 and beyond.
C3.ai (AI) has several tailwinds that could drive its appreciation in 2025. The company recently reported a 29% year-over-year revenue increase in its fiscal Q2 2025, signaling strong demand for its enterprise AI solutions.
They also formed a strategic partnership with McKinsey & Company to accelerate AI adoption across industries, which could unlock major enterprise deals. Additionally, C3.ai is now an approved vendor for the U.S. Department of Defense's AI initiatives (a common theme you will see with PLTR and BBAI as well), positioning it to secure lucrative government contracts.
With the AI sector continuing to expand and C3.ai refining its product offerings, the company has strong upside potential in 2025 as businesses and governments increase AI spending.
Bear this mind — AI’s market size is estimated to grow at a rough CAGR of 25% on the low end to 37% on the high end from 2024 to 2030. This will be a similar opportunity to the early days of crypto and tech, 2025 is a great year to begin packing your bags. Your grandchildren will thank you.