The 4 biggest investments in my Stocks & Shares ISA have all outperformed the S&P 500 this year.

For anyone thinking of investing in individual stocks, you would do well to go through the S&P 500 what is it about. Otherwise, investors may buy a fund that tracks an index.

It’s not easy to do, but the big four investments in my Stocks and Shares ISA are all ahead of schedule as 2024 draws to a close. And that gives me a lot to think about.

The shares I own

The largest stock in my portfolio is Citigroup (NYSE:C). Share prices have been rising as investors await easier banking regulations due to the outcome of the US election.

Games Workshop‘My biggest UK stock. Despite making the product a reality in a difficult environment, sales have been growing steadily and the stock has responded accordingly.

The third is Amazonwhich has also been moving since the beginning of November. Growth in the cloud computing and online advertising sectors is also helping to boost the share price.

Finally, there is Berkshire Hathaway. Warren Buffett may not think the stock is that popular right now, but that hasn’t stopped investors from buying his investment vehicle for their portfolios.

The S&P 500 is up 28% since the start of the year. But so far, Citigroup (34%), Games Workshop (+45%), Amazon (+46%) and Berkshire Hathaway (29%) have done better.

That puts me in a position where I have to consider a difficult question. Should I stick with them while they’re doing well, or look to reinvest in other opportunities?

Citigroup

A very interesting example is Citigroup. I bought the stock when Jane Fraser took over as CEO with a clear vision of improving the share price was not showing.

I think the reform process is going well. Its plan is to sell some of its retail operations to focus on its core areas of expertise.

My opinion of the company has not changed. But the stock is now 40% more expensive than when I bought it, so it’s worth considering whether future growth is now priced in.

I didn’t expect the stock to do well this year – my view was long-term based on the outcome of Citigroup’s restructuring over the past few years. So this has been a surprise.

With a price-to-book (P/B) ratio of 0.7, Citigroup shares trade at a discount to other major US banks. But they are equal to their average rate of return over the past 10 years.

I am reasonably confident that I will not buy at today’s prices and since the investment equation is looking less attractive, I am thinking of selling. The problem, however, is finding something else to buy instead.

Very efficient

Outperforming the S&P 500 is not easy. And I’m not sure if my overall portfolio is ahead or not this year. Strong gains in some stocks have been moderated to some extent by others – Diageo being one example. That stock is down 17% since January, a significant drag on total returns.

Ultimately, performance in one year isn’t really important – it’s the long-term outcome that matters. And this is what I consider when I consider what to do with the money I have invested.