There are lots of different ways to invest in the stock market, but one of the best approaches is to add to your winners. Rather than taking profits early, it's a much better move to feed your best-performing stock, as winners tend to keep winning in the stock market.

Adding $5,000 to some of your top stocks could be a genius move, as that's not an unaffordable amount of money, but it's still enough to make a difference over the long run as it compounds. As we get ready to turn the calendar, investing that amount into these two stocks in 2024 could pay off big over the long run.

Person standing under money falling down.

Image source: Getty Images.

1. Disney

Walt Disney (DIS 0.25%) may still be the first name in family entertainment around the world, but the company's investors know that the stock has been dragged through the mud over the last few years. Shares of the entertainment giant only recently bounced off a nine-year low, and the company has faced a number of challenges, including multiple restructurings, a declining linear TV business, losses in the streaming division, new competition at ESPN, and a series of box office bombs, including The Marvels and Wish recently.

However, there are a number of reasons to believe that the stock could continue its recent rebound in 2024. First, Disney is aiming to deliver a profit from its direct-to-consumer streaming division by the end of the fiscal year next September. Doing so would be a significant milestone for the company.

This should be the first step in expanding profit margins over the coming years as Disney+ adds subscribers and builds out the advertising side of the business. Its price hike in October should also make a significant dent in its losses, and hitting the streaming profitability goal early would surely give the stock a jolt.

Additionally, rumors have been swirling for months about Disney possibly selling off some of its linear TV assets, including ABC, some of its cable channels, and its Indian operations. ABC has been reportedly valued in the range of $10 billion, and so has the Indian business. Disney has not indicated that any talks have been held, but CEO Bob Iger is a longtime dealmaker and said earlier that the company would look into selling off non-core assets so that it could pay down debt and invest in the growing segments of the business.

Finally, Disney's theme parks business remains a huge cash cow, and the company is investing to grow profits there, with plans to spend nearly $60 billion in capital expenditures over the next decade.

Iger recently said that the company is ready to begin building again after a year of restructuring and fixing the business, and the fruits of those efforts should start to become apparent next year.

2. Redfin

There's no doubt that Redfin (RDFN -4.15%) has struggled in the current macroeconomic environment. The stock has fallen more than 90% from its pandemic-era peak as the housing market has slowed to a crawl following a surge in mortgage rates, which has caused a significant decline in home transactions for the online real estate brokerage.

However, there are signs that Redfin is adapting to the slower housing market. In its third-quarter earnings report, the company reported an 8% increase in gross profit to $98.3 million, even as revenue fell 12% to $269 million. The company is still losing money, but its loss narrowed from $90.2 million in the quarter a year ago to $19 million, showing significant progress.

The other reason to bet on a comeback in Redfin stock next year is that interest rates are expected to start to come down, and the stock has already shown that it's sensitive to interest rate developments based on recent movements. And more signs that rates could come down should give the stock a boost.

At this point, Redfin stock is cheap enough that it won't take much to lift the stock next year. If the housing market starts to recover and Redfin can control its costs, the stock could easily double or better in 2024.