My account is sitting at around $127k, spread across 12 different stocks. I’ve got about $5k in stocks like MU, INTC, Disney, HD, and Netflix, and up to $10k in bigger names like META, MSFT, AAPL, TSLA, and other large-cap tech. But NVDA has grown to $40k and just keeps going up. I’m a bit nervous that I’m too heavily invested in it, even though it’s been a big winner.
Your portfolio is quite concentrated, especially in tech. It’s risky, but some top investors have made their fortunes by focusing on a few high-conviction bets. If it were me, I’d take some gains from NVDA and diversify into an ETF like VOO or VTI, maybe add some international exposure with VXUS.
@Drue
I’m 33 and work as a school counselor. I have a separate retirement account with the state, and this is my personal account that I’ve managed since college. I was considering putting $10k into VTI or SPY. Maybe I should trim $15k from NVDA and use it for that.
@Sidney
If you go with an index fund like the S&P 500, you’ll still get some exposure to NVDA, just in a smaller portion and alongside other companies.
@Sidney
Are you maxing out your 403(b)? NVDA has had a huge run-up, but some concerning signs like rising accounts receivables and inventory. Look into NVDA’s partnerships like CoreWeave and its connection with SMCI. Just something to consider before deciding.
You’ll learn about risk tolerance through experience. A diversified portfolio can save you pain during downturns. I keep 5% of my portfolio in individual stocks and the rest in index funds, so I don’t get burned too badly if one company drops.
Max said:
This is where rebalancing helps. Selling off some of your winners ensures you’re not overly reliant on one stock. NVDA is a unique company, though.
You might want to rebalance. It can go either way for a portfolio, though.
It depends on your perspective. NVDA’s future depends on AI growth, but market timing is tough. Diversifying may be a safer bet, but nobody can be 100% sure. Congrats on the gains!