#13 | Why ‘Top 10 stocks for 2025’ lists are a total scam

It’s that time of year again, when the internet floods with flashy headlines like “Top 5 Stocks to Buy in 2025” or “10 Stocks That Will 10x Next Year.” Sounds tempting to many. But here’s the truth: these predictions are a scam! They are designed solely to grab your attention. It is wasting your precious time.

In this episode, we’re breaking down the clickbait trap and why hype-driven stock picks mislead investors, how the herd mentality can cost you money, and what smart investors do instead.

We’ll talk about:
✔️ Why these stock lists exist.
✔️ The psychological tricks that make people fall for them.
✔️ How long-term investors avoid this noise.

If you’re tired of the hype and want to focus on real investing and wealth creation, this episode is for you. 

So grab a coffee, tune in, and let’s talk about what actually works. 🎧

Transcript

Avoid Clickbait

Speaker 1 0:00

It's a new year , 2025 , a time when people reflect on the past year , set goals for the year ahead , and a time for lists Not just Christmas lists , but lots of ridiculous lists . Lists like top 5 stocks to buy in 2025 , or top stocks that will double next year . Believe it or not , I've actually seen this 10 stocks that will 10x in 2025 . In this episode , I want to talk about one of the biggest traps in investing Clickbait headlines , hype driven stock picks , following the crowd and the constant noise that misleads investors like you and me every single year Sounds familiar . Well , let me tell you something upfront these headlines , while tempting , are worthless most of the time , and in this episode , I am going to explain why . So grab a coffee , sit back and let's break it all down . A quick Google search will show you that even the largest finance companies engage in this practice . Plenty of Substack writers , x-accounts , youtubers and reddit users do it too , and while it's complete nonsense yes , let's just call it what it is we do understand why they're doing it .

Speaker 1 1:36

Let's start with a fundamental question why do these clickbait stock articles and videos exist ? Well , the simple answer because they work . People crave certainty , they want a clear and definitive answer . They want someone to tell them things are going to be all right and these are the three stocks that will make you rich next year . It sounds great , right , but the harsh reality is nobody knows what's going to happen in the market next year , let alone in the next 5 or 10 years . Not me , not wallstreet analysts , not even the so called finfluencers with millions of followers . Most people are fooled easily and are too short term focused . Who wants to make money over 30 years ? Most people want it today or next year .

Speaker 1 2:27

And yet these articles and videos keep appearing year after year like clockwork . Why ? Because they drive massive engagement . These articles drive clicks , likes , views and , ultimately , money for the creators . Not because they actually help you become a better investor . And let's call it what it is it's marketing , it's not investing . And here's the kicker Even major financial media companies do it Because they're not in the business of making you a smarter investor .

Speaker 1 2:59

They're in the business of keeping you engaged . The longer they hold your attention , the more ad revenue they make . It's the classic follow the crowd mentality Everybody wants to get rich overnight or as fast as humanly possible , and sure for a few lucky , and sure for a very lucky few it's possible , but for the other 99% , not a chance . That doesn't mean getting rich through investing is impossible . It just means that real wealth takes time , patience and persistence , and let's be honest , having a combination in today's world is incredibly difficult . Clickbait investing doesn't teach you patience . It feeds you the opposite Impulse emotion and short-term thinking . And you know what ? I don't even blame the people making these clickbait articles . It makes money , it captures attention , and time is money . I get it . I really do , because , at the end of the day , these articles aren't there to make you a better investor . They're just here to briefly entertain you and nothing more . It's noise and , to be honest , we have enough noise in our lives . So if you're reading our Substack articles or listening to this podcast , I hope you either already avoid these types of stock picking clickbait articles or you'll start doing so after this episode .

Speaker 1 4:23

From a financial or view account perspective , what we are trying to do with the Dutch investors isn't exactly the most strategic or profitable approach , but , to be honest , we don't really care . We don't count the people we reach . We try to reach the people who count Because these clickbaity creators they make money off people's lack of knowledge and goodwill , and that is something we dislike a lot . We're not here to tell you what you should or shouldn't do . We simply want to caution you against putting too much faith in these kinds of often short-term clickbaity articles . So we're not hating on them , we get it , we really do . It's just not something we stand by .

Speaker 1 5:05

So what's the danger of following the crowd and these clickbaity articles ? There's a psychological reason why we're drawn to these types of predictions . Our brains are wired for herd mentality . In investing , this means we see other people piling into a stock we feel compelled to follow . We see Nvidia up 200% and jump in because we don't want to miss the other 200% . We see someone doing exceptionally well with Tesla and all of a sudden think we will also have that success .

Speaker 1 5:39

But that's not how things work . History has shown us that following the crowd usually leads to average or below average returns . As Warren Buffett famously said , and I quote In the short term , the stock market is a voting machine . In the long term , it's a weighing machine . I mean this basically means that in the short term , stock prices are driven by popularity and hype , but in the long term , only the fundamentals matter and your chances of getting a positive return increase with a longer holding period , and that's factual and proven . A great example is the tech stock boom in 2021 . Everyone was piling into the same high-flying names , convinced they were the future , and by 2022 , many of these companies had crashed by 50% or more . Not all of them , but many .

Speaker 1 6:36

Fear makes people follow the crowd , but exuberant times do as well . Investors well , most of them have a herd mentality . They want to invest only if other people are also investing in it . But short-term hype doesn't equal value . So let's talk about crowd psychology in investing , because understanding this can save you from making costly mistakes .

Speaker 1 7:02

Here's the thing the stock market isn't just numbers and charts . It's made up of people , and people are emotional . Optimism and pessimism , hope and fear . These emotions don't just exist in different investors . They can exist in the same person at different times . History is full of examples of market manias and perhaps no book captured this better than Charles McKay's extraordinary popular delusions and the madness of crowds . He documented some of the most extreme cases , like tulip mania in the 1600s , a time when people paid absurd amounts for tulip bulbs , sometimes as much as a house , convinced prices would never fall . And of course they did , and it's easy to see looking back , and when they crashed , they took fortunes down with them .

Speaker 1 8:02

The pattern repeats over and over again . People make the same mistakes again and again , and it starts with excitement . Prices rise and everyone believes . This time it's different . More and more people jump in , afraid of missing out . The FOMO effect , banks and lenders start fueling the frenzy , making it even easier for people to overextend themselves , and so it eventually cracks . Investors start second guessing , doubts turn into fear , and that fear quickly turns into panic selling . The market collapses , often falling way lower than where it started , sometimes taking years to recover . Those who cannot remember the past are condemned to repeat it . It's just one of my favorite quotes , and what's fascinating is that studies on human behavior show something surprising . The fear of missing out on profits is often stronger than the fear of losing money . That's why we see bubbles form again and again . It's hard to watch friends , family or even strangers making money and not feel like you're falling behind , because in investing , when you follow the herd , you usually get trampled .

Speaker 1 9:18

Year after year , analysts try to predict which stocks will perform the best , and time and time again , they fail . A study showed that most stock market predictions are horribly off the mark . Analysts tend to be overly optimistic when stocks are rising and overly pessimistic when stocks are falling . Why ? Because stock prices are influenced by so many unpredictable factors Interest rates , earnings , surprises , geopolitical events , technological breakthroughs and , like I mentioned before , emotions . Also , popular stocks tend to have higher valuations , often widely covered by influencers and analysts . They tend to have a higher valuation , which means higher expectations , which increases the chances of these stocks underperforming .

Speaker 1 10:11

Predicting next year's top stocks is like predicting next year's weather on a specific day . Sure , you can make an educated guess , but the chances of being consistently right Extremely low . And I know there are people listening that , yeah , but I've heard some people being right . Yeah , well , even a broken clock is right twice a day . And yet every december , we see the same recycled content the top 10 stocks that will outperform in 2025 . Top stocks to own in 2025 . Top stocks to buy right now . And if this strategy really worked , why are we not all billionaires by now ? So if stock predictions are mostly useless , what should you do instead ?

Speaker 1 10:59

Here's an approach we like to follow . We tend to ignore short-term stock picks . Instead of looking for the best stocks for the next year , we look for the best businesses for the next decade or even longer . We tend to follow the fundamentals , not the hype . Stock prices fluctuate daily , but strong businesses create value over time . We focus on revenue , growth , profitability , competitive advantages and leadership . We read the right sources Instead of following clickbait articles and YouTube videos . Read quality investing newsletters and research from people who actually invest for the long term . A few awesome names that come to mind are acquired business breakdowns in practice or the memo by Howard Marks . But also read the 10 case of the companies . These are the most factual information you can get on a company . They don't follow the crowd , are independent thinkers and they all stay focused on what it's all about the fundamentals of a business . And , last but not least , be patient . Investing is a marathon , not a sprint . The best returns come from holding great companies for many years , not jumping in and out .

Speaker 1 12:13

Based on next year's prediction , as we head into 2025 , we challenge you to take a step back . Just do nothing . It's that simple . Sometimes , when you see a flashy headline , don't click on it . When you see a flashy headline , don't click on it . Avoid it . Or ask yourself is this based on real research or is it just engagement-driven content ? Is this going to benefit me ? Is this helping me become a better investor or just keeping me entertained ? Just a few questions to ask yourself .

Building Long-Term Wealth Through Investing

Speaker 1 12:47

Real investing is about discipline , patience and rational thinking . It's not about chasing the hottest stock picks , earning a lot of money in the short term . You might be right sometimes , but the chances of losing money is way higher . So , instead of following the noise or the crowd , focus on building a strategy that works for you in the long run . That's how real wealth is created , and , if history teaches us anything , following the crowd usually leads to the regret . If you want to go beyond the noise and truly expand your investing knowledge , we invite you to try the Dutch Investors Premium . Instead of handing you a clickbait top three stocks list , our team of four dives deep into one company per person each month , and this allows us to release a new deep dive every single week , analyzing 52 stocks per year with a research first approach . Join a community of like-minded investors who focus on real , long-term value creation and share a passion of everyday learning and investing . We hope to welcome you soon , and that's all for today's episode . Until next time , stay curious , keep learning and happy investing .