Why Doing Nothing Paid Off: A Year-End Investment Reflection

Investors Who Did Nothing Did Just Fine: A Year-End Reflection

As we approach the end of 2025, the financial markets have experienced a rollercoaster of activity, yet one notable trend has emerged: investors who chose to hold their positions rather than panic-sell or make drastic changes to their portfolios have fared surprisingly well. This phenomenon raises an interesting discussion about the merits of a long-term investment strategy amidst market volatility.

Strong Performance of U.S. and Foreign Stocks

At the outset of the year, those who invested in U.S. stocks enjoyed a robust performance, with many companies reporting significant gains. For instance, tech giants like Apple Inc. ($AAPL) and Microsoft Corp. ($MSFT) saw their stock prices rise due to strong consumer demand and continued innovation. Meanwhile, overseas markets also delivered impressive returns, with companies like Alibaba Group Holding Ltd. ($BABA) and Nestlé S.A. ($NSRGY) leading the charge for foreign equity investors.

The resilience of these stocks highlights a crucial lesson for investors: sometimes, the best action is no action at all. By holding onto quality stocks, investors have been able to weather market storms and capitalize on upward trends.

Treasuries and Cash Yields

In addition to equities, U.S. Treasuries performed well in 2025, providing a safe haven for risk-averse investors. The high yield environment has made cash holdings attractive, as more investors are opting for safety in uncertain times. Companies such as Johnson & Johnson ($JNJ) and Coca-Cola Co. ($KO), known for their stability and dividends, have also provided investors with a reliable income stream, further reinforcing the idea of sticking with what you know.

The Bottom Line

As we reflect on the year, it becomes clear that a hands-off investment approach can yield substantial rewards. While the market will always have its ups and downs, those who embraced patience and stayed the course have emerged with solid returns. As we look forward to 2026, it’s worth considering whether your investment strategy aligns with the long-term vision that has proven successful this past year.

For those who want to delve deeper into this year's market performance, including insights on why doing nothing was often the best strategy, check out the following article:

Read more: In a Wild Year for Markets, Investors Who Did Nothing Did Just Fine