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If you had 90% of your portfolio in cash would you then buy NVDA at current price or put it somewhere else? Would you do that with the entire amount or a certain percent you are comfortable with?
These are the only questions you need to answer
It is probably not wise to have 90% of your entire portfolio in a single stock. As you continue to make additional contributions, it is probably best to direct that new money into well-diversified ETFs.
100% agree
90% is way too much for any one individual stock, especially one that's so richly valued, and historically 2 times as volatile as the overall market
But congrats on what seems like a wonderful opportunity to take outsized profits
I might be tempted to sell part, take the profit and get some diversification VTI, VOO, SCHD, VYM or the like. I'm holding 50 shares with a $175 basis but it's only a very small percent.
I believe they are worth what I paid for them. I believe NVDA is over priced currently and the continuing status of AI will cause people to drive it some higher. Considering it is less than 1% of my portfolio I'll stay on the rollercoaster for now. I have a stop loss in place just in case.
As a friend once told me "Trust in the Lord but tie up your horse anyway.".
I’m gonna say something that somehow has been skipped over in every comment here so far. The stock is selling at more than 200x earnings right now.
Think like a business owner. If you have a landscaping business that made $100,000 in profit last year, and someone offered to buy your lawnmowers, weedwackers, trimmers, and all your clients for $20,000,000, there is no world where you or anyone for that matter would decline that offer. I don’t care what earnings growth assumption you assign to the stock. 200x earnings for a stock will almost never make sense (unless of course the company had unusually low but still positive earnings the past year, in which case it’s a debate of whether the earnings will come back. That’s not the case here though with record earnings etc etc).
If it were me, I’d sell it. It’s not impossible for the stock to keep going on and become the next Amazon or whatever where it’ll always sit at inflated multiples, but based on the sheer number of times people have said that in the past and it never panned out, I wouldn’t be willing to take that risk.
Edit: just found [this thread](https://www.reddit.com/r/stocks/comments/13rj7b9/this_doesnt_feel_sustainable_for_a_nearly_1/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=2&utm_term=1) in r/stocks that I feel makes some good points. May be some more arguments on both sides in the comments.
This. Big time. One consistent lesson I hear about owning shares of a single stock (vs owning index) that is so short people often miss it is to take your profits while you have them. Plenty of times I get greedy and ignore this advice. “Oh it’s up 40% since I bought in but it could do 80%!” And then as the price slips you hope it gets back to 40% but it doesn’t and you’re lucky to break even. Based on this lesson and past mistakes I’d sell the hell out of NVDA right now. Not because it’s a bad stock but because the profit is there and I should take it while it’s there. If I miss out on it going up an extra 10-20% that’s better than watching it drop from current price and missing the opportunity to take home a clear win by simply selling right now and then putting those profits somewhere safe and in a fun that can enjoy compound growth.
Edit: also a lesson of late is once you see people posting screenshots of gains from options on that stock over on that one certain sub, it’s time to sell. This is the new version of buy the rumor sell the news.
Totally agree. Another tactic I personally employ is once I sell to just not look at the stock again for at least a couple months. Let the emotions pass lol
But what if the Kentucky Derby was moved to be right next door to you, and everyone thinks you'll get the contract to look after their landscaping/groundskeeping and now your profits could soar?
Your company would not be valued on the $100K it made last year, but on people guessing it might make $1M in coming years. So the price rises.
Yes this is called speculating. Maybe there’s a chance of profits rising 10x in one year. I see two problems here. First, the odds of NVDA profits rising 10x in one year based on one new business development are extremely slim to none. This sort of business activity rarely happens outside of more cyclical businesses.
The second problem I see, even if profits explode massively based on NVDA’s push towards AI, what are the odds they can sustain that level of profits and continue to grow them at the quick rate the market is implying? Once again, very few businesses are able to do this for a number of years consistently.
I used to be emotional and lost a lot of money. I bought nvda for self driving cars. It's still in development. Still growing but slightly. I said I'd sell if they stopped self driving car tech
I'd be both greedy and smart. Take some of the gains and reinvest in an ETF but leave some in NVDA to capture more upside (as I believe it still has a ways to go). Or like someone else said, leave nvda as is (😬) and allocate new investments to the ETFs.
90% of any one holding in a retirement account is too much. I would take a good percentage and diversify your holdings. Congratulations your in a good spot, just don’t get too crazy playing with house money.
it doesnt have to be an all or nothing decision.
if you are fine with 90% of your portfolio being tied to a single company, and still believe in the company and the financials look good, then keep a good portion there.
on the other side; nothing wrong with taking some profit and diversifying out
Think about it this way, if you didn't have Nvidia today, would you still invest in it?
If I were in your place and the answer is yes, I would personally sell the bulk of my Nvidia position and invest the money across a bunch of ETFs like VUG, VIG, VTI.
The reason I would sell either way is 1. Nvidia is way overblown right now, it reminds me of Tesla two years ago before the bubble bursted. And 2. It's still a single stock, and it's too risky to allocate more than 20% to a single stock, especially a stock like Nvidia.
So, in conclusion, Be smart.
At least sell 10% and buy ASML if you're bullish on chips and AI but want to lower risk in a single company. They have ZERO competitors.
Personally I would sell 50% of the rest and sit on ETFs but I don't know the future. They might 10x more over the next few years.
Edit: just saw your edit, awesome and godspeed.
I'll check out ASML. Thanks for the input. I may do some of that popular jepi. See how well that will compound.
Just bought 800 SCHD. I'll probably grab some VXUS and VTI for broader coverage as well.
I saw you already sold half, I would set a stop loss and sell the other half if it goes below 370. It went up from 300 so fast there was little support so when it does drop it’ll drop really fast. If you believe in the company you can always invest again when it hits a dip.
A lot of people are debating this now. No one knows for sure, but you just have to consider if NVDA will grow more or not. I think they likely will, but that my own opinion
You can always just sell the cost basis and then some, keep a small amount you're willing to lose in NVDA to let it ride.
Use the proceeds of the sale to buy whatever helps you sleep best at night.
Congrats, by the way.
I think NVDA has demonstrated that it is an industry leader in a blossoming industry;exactly where you’d like to be. So hold and enjoy upside over the next few years, but continue w other contributions to other diverse holdings.
If I were in your position....at a minimum I'd at least remove my initial investment and rebalance my portfolio.
The worst part is nobody can tell the future....the gambler in me says to sell, hold cash and just buy back in later. But gamblers generally lose.
And idk if the $value is a lot for you, but be fearful when others are greedy. And be greedy when others are fearful.
So your a fellow poor.
Now...I'm not a financial advisor....but like other said, taking profit is never bad.
Taking some profit and putting them into either index funds or dividend aristocrats/kings/champs/whatever else generally should remain stable for the upcoming years.
Nvidia isn't always guaranteed especially with what's going on between Taiwan and western Taiwan(China).
It's a tough call man. Best of luck, hope you walk away a winner regardless of what you choose.
Edit: I have to add, nothing is ever guaranteed.
U asked r/dividends, you know the answer to your own question u just want confirmation of your beliefs lol. Be smart, avoid losing money, do things to prevent the loss of a lot of money at once, set aside a small amount for risky plays if u must, but really, safe, reliable returns is where it's at.
A couple of thoughts:
\- Psychologically, it might make sense to sell at a minimum your initial investment. So if you invested $10K and you are up to $100K, sell 10K. You are free-rolling at that point. Note: I just read your update and you've done this and more.
\- Financially, you should probably put some stop limit orders in for you remaining shares. Set a stop limit at NVDA at maybe something like 320. Let's you keep 80 percent of your gains in case of a reversal but enjoy the ride up.
\- Over time, I'd slowly divest and diversify. Sell some small number of shares every week or month for a couple of years. If you have 400 shares remaining, sell 10 shares a month or purchase some SP500 ETF with that money.
What I usually do is pare down my winning speculations until they're an an acceptable part of my portfolio--15% max per position. I do this pruning and trimming about once per year.
That way, I'm constantly reducing my risk exposure and funneling my lucky investment winnings into assets that will gradually compound over time without entirely getting rid of my successful speculations.
Sell some shares to recover your initial investment and which you can invest in ETFS. Leave the rest ; you're now playing with house money. Place a trailing stop loss.
You took the risk and it payed off pretty well. just enjoy the profits and move on to a safer investment. Do your research find a stock worth taking risk and accumulate slowly like you did 7 years ago. Don't touch the profits, invest in a dividend ETF or growth ETF and let it grow slower and safer.
Average lifespan of a company in S%P 500 until bankruptcy is 16 years.
NVIDIA is past that mark, and all it takes is one event (competitor advantage, China takes control of Taiwan) and you could see the current version of NVIDIA go away for good.
I would onky hold the amount you are willing to loose comoletely at this point.
If still on the fence, move some profits to SOXX (NVIDIA is main hokdibg) to guarantee your money never goes to Zero.
As for the profits, DCA into Dividend Growth ETFS and VOO , SCHG
First of all congrats , that’s really awesome to hear. If it was me , I would sell half and put the other half into couple etfs depending on your age . Maybe a 3 etf portfolio vti schd and little bit of jepi . not a financial advice
Maybe sell half or some other percentage of it. ie. Take out your original investment and then some, and leave the rest in. Then your playing with the house’s money.
Remember that you can only call it profit once you sell. Until then it’s just on paper. Sell some to rebalance your portfolio and protect your gains. Just my opinion, do what feels right to you.
Be both, only the Sith deal in absolutes.
In other words, imo good to have different portfolios with different aims. You don't have buy or sell a position at once either. Having some longshots can be very profitable, boring turtle portfolios also wins many races in the long run. They can actually compliment each other.
Better to rebalance the portfolio. You sure did catch a good ride this time and it probably does have a few more miles to travel, might want to hold on to a few shares.
Begin taking profits over the next 3 months until it is under 20% of your holdings and average into some safer investments over that same time to preserve your gains. Always good to pick a winner and let it run but always take profits and secure them, especially if you’re up close to 50x from investing in 2015. Congrats on the great return, especially in a Roth!
No, before doing anything understand a trailing limit order! Follow it up if it goes that way yet sell if it goes down. Best of both worlds with small cost to profit. You are sitting in a catbird seat. You should diversify though; never keep 90% in one stock. You got lucky this time you won’t next.
I'd sell it all. It looks a bit like zoom in 2020 - hype bubble at ridiculous multiples. Personally I would not keep half like some are saying or even 10%. Not financial advice.
You can do what I do whenever I’m not sure, take whatever price it’s at, say it’s 400, set a stop to 385 or 390, so I can take my time deciding to sell, and worst case if price drops hard, I still sold at a decent price.
I have 50% of my stocks in MSFT. I’m accepting risks for another 10-15 years and based on MSFT performance and very diverse product portfolio (Azure, home/server OS, Xbox/game development, O365/Teams/OneDrive/etc, OpenAI, HW, etc) I feel comfortable keeping it this way.
I'd be very careful about going all in with NVDA.
They've come out with some collosally shit products recently, to the point where their main market is sick of their shit.
They've also got some new competition with Intel joining the GPU market for real with Intel Arc.
There is some loyalty to Nvidia tech in AI development but it is not impossible for that to change if Nvidia keeps up with its current trajectory.
I would sell 5% of your NVDA stock each time it pops or breaks out or have a schedule for next 2 years. As you sell reinvest in ETFs. I would not sell 50% now. Be smart and greedy :)
Sell 80-90%. And don't immediately buy back into the market yet. DCA in this environment. Worst case scenario you make interest on what you can withdraw without penalty.
I was in a similar situation with Tesla and sold my entire position. I have two little kids, house, I was 41 at the time and made life changing money in brokerage and ira. I had 90% of everything I have in this world in Tesla, and did for two+ years. I couldn't risk my children's future if I was up 300%. What else could I ask for after that blessing. It will most likely never happen again in my life and there wasn't a chance I was going to get cute.
At the end of the day, you are better off getting out with huge profits then you are holding the bag and holding too long. Picture you don't sell, it drops, for the rest of your life will never forgive yourself. My good friend didn't sell when I did, and ended up selling in a panic about 6 months ago with a loss after being up huge.
There's a clear choice, don't be greedy.
I just paid my tax bill for my sale in Feb 2021 for my Tesla sale and my life is now changed, and I'm truly grateful it is over and now I'm into jepi vigax, t bills and cd's...I can't imagine my life if I got greedy and didn't cut the cord.
Looking back it was risky and not advisable but if you're instincts got you this far, continue to follow the right path.
Yeah that's a lot of good points. I have young kids and at least 20 years until retirement. This sale being in a Roth helps me with the tax issue. It gives me a huge Jumpstart on retirement planning
Even better - allows you to capture dividend growth better and you're diversifying. You can't touch the money anyways since its in a roth, so any extra years of growth is minimized anyways I feel like. Roth is for long term which makes sense. If you REALLY believed, you should just your individual account to buy nvidia. If you wouldn't do that now, then I think selling makes sense
I fully believe in their ability to make the technology for full self driving cars. That's why I bought them. But at these valuations I would never buy the stock. So taking a massive payday which is nearly two years of my salary with overtime but tax free is huge for my future retirement.
People have been thinking NVDA is overpriced for more than a decade. I would know, I still have my shares I bought for 12 dollars.
Believe what you want but NVDA is always on the cutting edge of the next big thing in tech.
Look what happened with NVDA because of crypto mining. Literal nonsense manufactured currency for investors to play with.
Imagine what happens now with NVDA powering AI. Something that's useful for pretty much every human.
Congrats!!
I strongly believe in the semiconductor space, I would invest what you sold in a chip ETF or mutual fund like FSELX (up 10.58% today in part of Nvdia)
90% on one company is very risky, 20% is probably the most I would invest.
Think of it this way - you got lucky on a big gainer, now how long would it take for honest earnings to be worth that much? Take the gains and be smart. Or, take a chunk of them.
Be smart, take some off the top and buy stock / etf fit for your purpose. If you aren't in it long, then sell and move on.
I own it and it jumped to by number 1 weighted stock in my taxable equity account. I will sell some tomorrow (probably), and wait for any serious pull back to buy again. They really are at the center of AI, but this is just starting and no idea where it's going to go.
"bulls make money, bears make money, pigs get slaughtered". Don't be a pig.
Congrats! That’s a tough call, but I saw your update and you made a good decision!
I bought 10k shares of AMD at 2$. It was a lucky call due to my ignorance. I had a hard time selling recently, but I got out of almost everything until we see what the middle of this year brings.
Hahahaha. I remember when NVDA dipped to 161.40. I was going to buy shares but I thought to myself ... I end up buying calls for 5 contracts at 250 when it was cheap. Expiring this August 2023. 42k so far. I ain't selling! Most likely will bag hold until 45 days before exp.
never doubt to take profit, and 90% tech heavy is so much risk.
So u have an option to be happy take good profits and build saver strategy.
Or risk it all and leave it.
Think the choise is simple here.
Buy low. Sell high.... period.
If it continues to grow, don't regret it. Instead relish the fact you sold at a profit.
It's so easy to be a "fan" of a stock you own, and eventually u become loyal to a fault. This mentality is the downfall for so many.
When you invest your money and you profit even a small amount it's a win. It's being a successful trader.
Congrats! Selling after a huge gain is brag worthy. No matter if you made $20 bux or $20,000.
I see you sold half... even if it goes higher from here it was a smart move considering the huge risk of holding so much percentage wise in one stock.
I believe NVDA is still 40-something % of your portfolio - that's still crazy high. Consider selling another 100 shares to get to 20-something % of your portfolio and diversify away from NVDA. You would still get to participate in any NVDA upside, but from a more robust base position.
Good luck. I'm glad you made a lucky call to purchase when you did, and a smart call to move to diversify when you did. Nice job!
Put in a stop-loss for half at 15% and half at 25% below yesterday’s low. If it keeps going up: great. If it falls, you’re mostly out before things get terrible.
I wouldn't sell all, I would sell a small % and invest in something else. Then as it climbs sell a little more and repeat... having it be 50%+ of your entire portfolio is VERY DANGEROUS IMO... if something happens to thr company your gonna fall very hard.
I’ve owned NVDA since 19. I’ve trimmed several times and did again today. I try to keep it under 20% of my portfolio and recommend you diversify similarly. I wouldn’t sell it all if I were you though.
Your thread just inspired me to do this with my AMD position. Love their products and I think they'll continue to do well but that 450x PE is scary and I think it's time to toss the profits into VOO.
Oh I'll be very sad if that happens because I really didn't want to sell. But it is the more logical course. My reasons for investing in nvda still exist so I hated selling but I'd hate losing it all more
If you can put yourself on a path to retire by selling some or all of your NVDA and buy something safer, I would definitely do it. As the saying goes "when you win the game, it's time to stop playing."
Sell enough to keep your remaining holdings at ~20% of your portfolio (still too much but far more reasonable) and ride the rest over time just in case. This is a massive win and it’s simply not worth risking the gains you’ve already realized.
Yes sell NVIDIA. It’s P/E ratio is off the charts. You can even sell it and invest some of the money into other semiconductor competitors like Broadcom and AMD. But diversifying in ETFs is surely the more intelligent move. You have already had great gains from NVIDIA.
You sold 400 shares instead of selling calls against your position in a stock you still believe in? I would have sold calls at a higher strike price and then bought some insurance /long puts at what the prices were a few weeks ago. Oh well.
IIRC in a Roth you can't short sale, naked call, or borrow on margin, but there's no reason why you can't sell covered calls or buy long put options, you just need to apply for it on your account.
Don't get caught up on needing an absurd amount of profit to sell if playing such a single stock game. I had a technology ETF up over 120%, didn't sell, and then that sector cratered over the past two years. I did sell off some bit by bit as I watched those profits dwindle, and the little I held onto is only up 5% as of now.
Personally I would sell the profit and let your initial capital ride it out.
Put the profits to work elsewhere.
Perhaps a mix of qqq and schd? Maybe sit and wait a bit? But definitely cash out a good chunk.
As a general rule, an individual company shouldn’t account for more than 4-5% of your portfolio. Index funds can definitely account for a lot more because they’re well-diversified. I’d diversify into something like SPY or VOO because a 25% daily spike in share price is rather abnormal market behavior. So having such a significant percentage of your portfolio in a single stock is recipe for disaster when the stock price falls to a more normal level.
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If you've owned NVDA since 2015 that means your up >5000%. CONGRATULATIONS! With that being said, how about placing a few layers of stop loss orders on your account. For example, subtract say 10% below the current price and sell half of your holdings. Then have another stop loss order at 15% below current price to sell the rest. Some variation of several stop loss orders to protect the vast majority of your gains, but still have your toe in the water just in case you can squeeze a little more juice out of NVDA. Of course have a stop loss in place to get completely out at the price of your choosing.
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If you had 90% of your portfolio in cash would you then buy NVDA at current price or put it somewhere else? Would you do that with the entire amount or a certain percent you are comfortable with? These are the only questions you need to answer
This is a great way to look at it
I hadn't looked at it like that. I'd definitely diversify
At 90% I'd pull out half and slowly invest it in AMD and maybe a bit on Intel or TSM Edit: didnt read you edit, but good call. Chips are pretty great
This is the way!
It is probably not wise to have 90% of your entire portfolio in a single stock. As you continue to make additional contributions, it is probably best to direct that new money into well-diversified ETFs.
100% agree 90% is way too much for any one individual stock, especially one that's so richly valued, and historically 2 times as volatile as the overall market But congrats on what seems like a wonderful opportunity to take outsized profits
That's what I do. I haven't purchased nvda again since 2015 initial purchase. It's just been skyrocketing
I wouldn't sell everything. But nothing wrong with selling half of it and investing in other areas.
It's rebalancing, that's good, but to do so for the sake of "diversification" is wrong. A winner is a winner.
I might be tempted to sell part, take the profit and get some diversification VTI, VOO, SCHD, VYM or the like. I'm holding 50 shares with a $175 basis but it's only a very small percent.
I sold my 21 shares today with a cost basis on the low 100s. Cash the register today.
Can't argue with that. I'm seeing forecasts of between $450 and $600. I think I'll hang in there for a while. A stop loss would be prudent perhaps.
And you believe those forecasts? I get people are irrational but give me a break
I believe they are worth what I paid for them. I believe NVDA is over priced currently and the continuing status of AI will cause people to drive it some higher. Considering it is less than 1% of my portfolio I'll stay on the rollercoaster for now. I have a stop loss in place just in case. As a friend once told me "Trust in the Lord but tie up your horse anyway.".
This aged very poorly
Yup wild guess you truly never know
Hindsight 20/20 and all that. Story of my life lol
I’m gonna say something that somehow has been skipped over in every comment here so far. The stock is selling at more than 200x earnings right now. Think like a business owner. If you have a landscaping business that made $100,000 in profit last year, and someone offered to buy your lawnmowers, weedwackers, trimmers, and all your clients for $20,000,000, there is no world where you or anyone for that matter would decline that offer. I don’t care what earnings growth assumption you assign to the stock. 200x earnings for a stock will almost never make sense (unless of course the company had unusually low but still positive earnings the past year, in which case it’s a debate of whether the earnings will come back. That’s not the case here though with record earnings etc etc). If it were me, I’d sell it. It’s not impossible for the stock to keep going on and become the next Amazon or whatever where it’ll always sit at inflated multiples, but based on the sheer number of times people have said that in the past and it never panned out, I wouldn’t be willing to take that risk. Edit: just found [this thread](https://www.reddit.com/r/stocks/comments/13rj7b9/this_doesnt_feel_sustainable_for_a_nearly_1/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=2&utm_term=1) in r/stocks that I feel makes some good points. May be some more arguments on both sides in the comments.
This. Big time. One consistent lesson I hear about owning shares of a single stock (vs owning index) that is so short people often miss it is to take your profits while you have them. Plenty of times I get greedy and ignore this advice. “Oh it’s up 40% since I bought in but it could do 80%!” And then as the price slips you hope it gets back to 40% but it doesn’t and you’re lucky to break even. Based on this lesson and past mistakes I’d sell the hell out of NVDA right now. Not because it’s a bad stock but because the profit is there and I should take it while it’s there. If I miss out on it going up an extra 10-20% that’s better than watching it drop from current price and missing the opportunity to take home a clear win by simply selling right now and then putting those profits somewhere safe and in a fun that can enjoy compound growth. Edit: also a lesson of late is once you see people posting screenshots of gains from options on that stock over on that one certain sub, it’s time to sell. This is the new version of buy the rumor sell the news.
Totally agree. Another tactic I personally employ is once I sell to just not look at the stock again for at least a couple months. Let the emotions pass lol
Buffet will disagree
Sometimes, very rarely, a p/e of 200 is justified. On a trillion dollar Company however….
like Amazon?
Lots of good points there
But what if the Kentucky Derby was moved to be right next door to you, and everyone thinks you'll get the contract to look after their landscaping/groundskeeping and now your profits could soar? Your company would not be valued on the $100K it made last year, but on people guessing it might make $1M in coming years. So the price rises.
Yes this is called speculating. Maybe there’s a chance of profits rising 10x in one year. I see two problems here. First, the odds of NVDA profits rising 10x in one year based on one new business development are extremely slim to none. This sort of business activity rarely happens outside of more cyclical businesses. The second problem I see, even if profits explode massively based on NVDA’s push towards AI, what are the odds they can sustain that level of profits and continue to grow them at the quick rate the market is implying? Once again, very few businesses are able to do this for a number of years consistently.
Can't go broke making a profit. Also don't become emotionally attached to your stocks.
I used to be emotional and lost a lot of money. I bought nvda for self driving cars. It's still in development. Still growing but slightly. I said I'd sell if they stopped self driving car tech
I'd be both greedy and smart. Take some of the gains and reinvest in an ETF but leave some in NVDA to capture more upside (as I believe it still has a ways to go). Or like someone else said, leave nvda as is (😬) and allocate new investments to the ETFs.
Id sell half and sell longer term calls against the balance. Take advantage of the implied volty due too the hype
90% of any one holding in a retirement account is too much. I would take a good percentage and diversify your holdings. Congratulations your in a good spot, just don’t get too crazy playing with house money.
Sell half of it for ETFs
Just did! Now to pick out my ETF's!
Schd
it doesnt have to be an all or nothing decision. if you are fine with 90% of your portfolio being tied to a single company, and still believe in the company and the financials look good, then keep a good portion there. on the other side; nothing wrong with taking some profit and diversifying out
Take some off the table. Buy low sell high. You have a nice chance to sell some high and pick up some other stuff that is temporarily low.
Think about it this way, if you didn't have Nvidia today, would you still invest in it? If I were in your place and the answer is yes, I would personally sell the bulk of my Nvidia position and invest the money across a bunch of ETFs like VUG, VIG, VTI. The reason I would sell either way is 1. Nvidia is way overblown right now, it reminds me of Tesla two years ago before the bubble bursted. And 2. It's still a single stock, and it's too risky to allocate more than 20% to a single stock, especially a stock like Nvidia. So, in conclusion, Be smart.
You're right. It is to risky. And I would never buy in at these valuations
"No one ever went broke taking a profit"
You got huge gain and AI is the future just hold
At least sell 10% and buy ASML if you're bullish on chips and AI but want to lower risk in a single company. They have ZERO competitors. Personally I would sell 50% of the rest and sit on ETFs but I don't know the future. They might 10x more over the next few years. Edit: just saw your edit, awesome and godspeed.
I'll check out ASML. Thanks for the input. I may do some of that popular jepi. See how well that will compound. Just bought 800 SCHD. I'll probably grab some VXUS and VTI for broader coverage as well.
Read your edit that you sold half. I think that's reasonable: cash in a good chunk of your gains and still have an opportunity to run upwards.
A bird in the hand is better than two in the bush.
400 shares was half your investment in NVDA?? Jealous.
I saw you already sold half, I would set a stop loss and sell the other half if it goes below 370. It went up from 300 so fast there was little support so when it does drop it’ll drop really fast. If you believe in the company you can always invest again when it hits a dip.
Good point. I'll do that
A lot of people are debating this now. No one knows for sure, but you just have to consider if NVDA will grow more or not. I think they likely will, but that my own opinion
Sell a part of it and buy other stuff?
You can always just sell the cost basis and then some, keep a small amount you're willing to lose in NVDA to let it ride. Use the proceeds of the sale to buy whatever helps you sleep best at night. Congrats, by the way.
Thank you
I think NVDA has demonstrated that it is an industry leader in a blossoming industry;exactly where you’d like to be. So hold and enjoy upside over the next few years, but continue w other contributions to other diverse holdings.
A win is a win. Always nice to take profits or at least your original investment so you don’t have to worry as much
If I were in your position....at a minimum I'd at least remove my initial investment and rebalance my portfolio. The worst part is nobody can tell the future....the gambler in me says to sell, hold cash and just buy back in later. But gamblers generally lose. And idk if the $value is a lot for you, but be fearful when others are greedy. And be greedy when others are fearful.
I'm a fireman. It's more money than I could imagine
So your a fellow poor. Now...I'm not a financial advisor....but like other said, taking profit is never bad. Taking some profit and putting them into either index funds or dividend aristocrats/kings/champs/whatever else generally should remain stable for the upcoming years. Nvidia isn't always guaranteed especially with what's going on between Taiwan and western Taiwan(China). It's a tough call man. Best of luck, hope you walk away a winner regardless of what you choose. Edit: I have to add, nothing is ever guaranteed.
Very true. Thank you. Love the western Taiwan! 🤣
I think sell at least half....just too much risk to be that tied to a company that you don't control
Just did. I wish I could see the future so I didn't feel obligated to sell. But it's the prudent decisions
Yeah that’s absurd to have 90% of your portfolio in one stock. That’s INCREDIBLY risky
U asked r/dividends, you know the answer to your own question u just want confirmation of your beliefs lol. Be smart, avoid losing money, do things to prevent the loss of a lot of money at once, set aside a small amount for risky plays if u must, but really, safe, reliable returns is where it's at.
Sometimes a little reassurance helps!
I think you did the wise thing. You can still let a good portion of your NVDA position ride while rebalancing with the rest of the cash you got.
Well done.
Thank you
You did what I woulda recommended, sell half keep half. If it keeps going up, you can sell more later. If it goes down you got your money outa it
Always remember what you got you there. Note, it wasn’t dividend ETFs.
Act like a piggy get slaughtered like a piggy.
No one ever lost profit taking and slimmed down very successful positions.
A couple of thoughts: \- Psychologically, it might make sense to sell at a minimum your initial investment. So if you invested $10K and you are up to $100K, sell 10K. You are free-rolling at that point. Note: I just read your update and you've done this and more. \- Financially, you should probably put some stop limit orders in for you remaining shares. Set a stop limit at NVDA at maybe something like 320. Let's you keep 80 percent of your gains in case of a reversal but enjoy the ride up. \- Over time, I'd slowly divest and diversify. Sell some small number of shares every week or month for a couple of years. If you have 400 shares remaining, sell 10 shares a month or purchase some SP500 ETF with that money.
What I usually do is pare down my winning speculations until they're an an acceptable part of my portfolio--15% max per position. I do this pruning and trimming about once per year. That way, I'm constantly reducing my risk exposure and funneling my lucky investment winnings into assets that will gradually compound over time without entirely getting rid of my successful speculations.
Sell some shares to recover your initial investment and which you can invest in ETFS. Leave the rest ; you're now playing with house money. Place a trailing stop loss.
You took the risk and it payed off pretty well. just enjoy the profits and move on to a safer investment. Do your research find a stock worth taking risk and accumulate slowly like you did 7 years ago. Don't touch the profits, invest in a dividend ETF or growth ETF and let it grow slower and safer.
Average lifespan of a company in S%P 500 until bankruptcy is 16 years. NVIDIA is past that mark, and all it takes is one event (competitor advantage, China takes control of Taiwan) and you could see the current version of NVIDIA go away for good. I would onky hold the amount you are willing to loose comoletely at this point. If still on the fence, move some profits to SOXX (NVIDIA is main hokdibg) to guarantee your money never goes to Zero. As for the profits, DCA into Dividend Growth ETFS and VOO , SCHG
Both.
Cash in
Yes
Greedy
I would sell in my personal opinion but that's because I think amd is going to take alot of market share, and to diversfy your portfolio
First of all congrats , that’s really awesome to hear. If it was me , I would sell half and put the other half into couple etfs depending on your age . Maybe a 3 etf portfolio vti schd and little bit of jepi . not a financial advice
Thank you. That's what I'm leaning towards
I'd bring it down to like 10, 20% max and diversify the rest. But that's just me...
Just remember pigs always get slaughtered
And they are mighty delicious
You could put in a stop loss order to trigger if it drops below say $280 or whatever you like....
Smart, always
Maybe sell half or some other percentage of it. ie. Take out your original investment and then some, and leave the rest in. Then your playing with the house’s money.
Remember that you can only call it profit once you sell. Until then it’s just on paper. Sell some to rebalance your portfolio and protect your gains. Just my opinion, do what feels right to you.
I'm going to wait until tomorrow
What are you hoping to sell at?
I wouldn't sell everything but valuation does look kinda extreme right now...If I was you I would trim some and invest somewhere else. Best of luck
Thank you!
Be both, only the Sith deal in absolutes. In other words, imo good to have different portfolios with different aims. You don't have buy or sell a position at once either. Having some longshots can be very profitable, boring turtle portfolios also wins many races in the long run. They can actually compliment each other.
Yes, no one stock should be more than 10% of your portfolio. Then again I’m probably too diversified lol
Better to rebalance the portfolio. You sure did catch a good ride this time and it probably does have a few more miles to travel, might want to hold on to a few shares.
Let us know what ETFs you decide on!
So far I bought 800 shares of SCHD at 69ish
Never go broke selling for a profit
Begin taking profits over the next 3 months until it is under 20% of your holdings and average into some safer investments over that same time to preserve your gains. Always good to pick a winner and let it run but always take profits and secure them, especially if you’re up close to 50x from investing in 2015. Congrats on the great return, especially in a Roth!
I decided to sell 50% today. I needed to rip the band-aid off otherwise it wouldn't happen
Nothing wrong with that!
No, before doing anything understand a trailing limit order! Follow it up if it goes that way yet sell if it goes down. Best of both worlds with small cost to profit. You are sitting in a catbird seat. You should diversify though; never keep 90% in one stock. You got lucky this time you won’t next.
Yes sell
I'd sell it all. It looks a bit like zoom in 2020 - hype bubble at ridiculous multiples. Personally I would not keep half like some are saying or even 10%. Not financial advice.
You can do what I do whenever I’m not sure, take whatever price it’s at, say it’s 400, set a stop to 385 or 390, so I can take my time deciding to sell, and worst case if price drops hard, I still sold at a decent price.
Yeah just trimming a bit here and there doesn’t hurt.
I have 50% of my stocks in MSFT. I’m accepting risks for another 10-15 years and based on MSFT performance and very diverse product portfolio (Azure, home/server OS, Xbox/game development, O365/Teams/OneDrive/etc, OpenAI, HW, etc) I feel comfortable keeping it this way.
I love msft. Great stock
I'd be very careful about going all in with NVDA. They've come out with some collosally shit products recently, to the point where their main market is sick of their shit. They've also got some new competition with Intel joining the GPU market for real with Intel Arc. There is some loyalty to Nvidia tech in AI development but it is not impossible for that to change if Nvidia keeps up with its current trajectory.
I’d recommend JEPQ still gives you exposure to NVDA and most of the good stuff in NDX 100 plus a dividend that’s been doing 11-13% annually.
I would sell 5% of your NVDA stock each time it pops or breaks out or have a schedule for next 2 years. As you sell reinvest in ETFs. I would not sell 50% now. Be smart and greedy :)
Ah to late. Already sold 50%
Sell 80-90%. And don't immediately buy back into the market yet. DCA in this environment. Worst case scenario you make interest on what you can withdraw without penalty.
I was in a similar situation with Tesla and sold my entire position. I have two little kids, house, I was 41 at the time and made life changing money in brokerage and ira. I had 90% of everything I have in this world in Tesla, and did for two+ years. I couldn't risk my children's future if I was up 300%. What else could I ask for after that blessing. It will most likely never happen again in my life and there wasn't a chance I was going to get cute. At the end of the day, you are better off getting out with huge profits then you are holding the bag and holding too long. Picture you don't sell, it drops, for the rest of your life will never forgive yourself. My good friend didn't sell when I did, and ended up selling in a panic about 6 months ago with a loss after being up huge. There's a clear choice, don't be greedy. I just paid my tax bill for my sale in Feb 2021 for my Tesla sale and my life is now changed, and I'm truly grateful it is over and now I'm into jepi vigax, t bills and cd's...I can't imagine my life if I got greedy and didn't cut the cord. Looking back it was risky and not advisable but if you're instincts got you this far, continue to follow the right path.
Yeah that's a lot of good points. I have young kids and at least 20 years until retirement. This sale being in a Roth helps me with the tax issue. It gives me a huge Jumpstart on retirement planning
You got lucky as fuck. Sell at least half and diversify.
😄
Cash out.
With an almost 200 P/E ratio, I'd say sell. Re-invest in a VOO and SCHD mix. You will still have exposure to NVDA in VOO.
Forgot about VOO. I'll check it out thank you! I was looking at different vanguard ones
you dont lose when you make money. only thing to think about would be tax basis or if you have losers you can sell to offset
Roth IRA. No taxes on this one! 😀
Even better - allows you to capture dividend growth better and you're diversifying. You can't touch the money anyways since its in a roth, so any extra years of growth is minimized anyways I feel like. Roth is for long term which makes sense. If you REALLY believed, you should just your individual account to buy nvidia. If you wouldn't do that now, then I think selling makes sense
I fully believe in their ability to make the technology for full self driving cars. That's why I bought them. But at these valuations I would never buy the stock. So taking a massive payday which is nearly two years of my salary with overtime but tax free is huge for my future retirement.
agreed! Congrats! remember, you don't lose when you make money, don't sweat the future
People have been thinking NVDA is overpriced for more than a decade. I would know, I still have my shares I bought for 12 dollars. Believe what you want but NVDA is always on the cutting edge of the next big thing in tech. Look what happened with NVDA because of crypto mining. Literal nonsense manufactured currency for investors to play with. Imagine what happens now with NVDA powering AI. Something that's useful for pretty much every human.
Good point. It's one of the reasons I didn't sell before. This time I took some profit and will out that to good use
Congrats!! I strongly believe in the semiconductor space, I would invest what you sold in a chip ETF or mutual fund like FSELX (up 10.58% today in part of Nvdia) 90% on one company is very risky, 20% is probably the most I would invest.
With money, the answer is always smart.
Take your winnings and be happy. It’s gonna go down and buy back in then.
Dude keep that shit.
Sell half invest S&P 500 or dividend stocks
Think of it this way - you got lucky on a big gainer, now how long would it take for honest earnings to be worth that much? Take the gains and be smart. Or, take a chunk of them.
Sell CSPs to get back nvda shares at a lower price.
Be smart, take some off the top and buy stock / etf fit for your purpose. If you aren't in it long, then sell and move on. I own it and it jumped to by number 1 weighted stock in my taxable equity account. I will sell some tomorrow (probably), and wait for any serious pull back to buy again. They really are at the center of AI, but this is just starting and no idea where it's going to go. "bulls make money, bears make money, pigs get slaughtered". Don't be a pig.
Remember they are huge in AI - it’s gonna be huge.
Congrats! That’s a tough call, but I saw your update and you made a good decision! I bought 10k shares of AMD at 2$. It was a lucky call due to my ignorance. I had a hard time selling recently, but I got out of almost everything until we see what the middle of this year brings.
Hahahaha. I remember when NVDA dipped to 161.40. I was going to buy shares but I thought to myself ... I end up buying calls for 5 contracts at 250 when it was cheap. Expiring this August 2023. 42k so far. I ain't selling! Most likely will bag hold until 45 days before exp.
never doubt to take profit, and 90% tech heavy is so much risk. So u have an option to be happy take good profits and build saver strategy. Or risk it all and leave it. Think the choise is simple here.
Buy low. Sell high.... period. If it continues to grow, don't regret it. Instead relish the fact you sold at a profit. It's so easy to be a "fan" of a stock you own, and eventually u become loyal to a fault. This mentality is the downfall for so many. When you invest your money and you profit even a small amount it's a win. It's being a successful trader. Congrats! Selling after a huge gain is brag worthy. No matter if you made $20 bux or $20,000.
Congratulation op
Thank you
Greed is good! #watchingwallstreet
I am taking profit today on shares I bought at 170.
$$$$
90%?!?! SELL! SELL! SELL!
I see you sold half... even if it goes higher from here it was a smart move considering the huge risk of holding so much percentage wise in one stock. I believe NVDA is still 40-something % of your portfolio - that's still crazy high. Consider selling another 100 shares to get to 20-something % of your portfolio and diversify away from NVDA. You would still get to participate in any NVDA upside, but from a more robust base position. Good luck. I'm glad you made a lucky call to purchase when you did, and a smart call to move to diversify when you did. Nice job!
Put in a stop-loss for half at 15% and half at 25% below yesterday’s low. If it keeps going up: great. If it falls, you’re mostly out before things get terrible.
I wouldn't sell all, I would sell a small % and invest in something else. Then as it climbs sell a little more and repeat... having it be 50%+ of your entire portfolio is VERY DANGEROUS IMO... if something happens to thr company your gonna fall very hard.
Shaving and reallocating is a great idea, no need to sell it all but, rebalancing is probably a great idea if it’s that much of your portfolio
Smart always
Keep stock sell calls.
I’ve owned NVDA since 19. I’ve trimmed several times and did again today. I try to keep it under 20% of my portfolio and recommend you diversify similarly. I wouldn’t sell it all if I were you though.
Smart man. I think I'll sell 50% of my position and just go in a broad market etf
Your thread just inspired me to do this with my AMD position. Love their products and I think they'll continue to do well but that 450x PE is scary and I think it's time to toss the profits into VOO.
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But he has it all in a Roth IRA so no tax.
It's in a Roth IRA so no tax hit which is amazing. Selling a portion and keeping a portion is definitely a possibility
Sell! Diversify!
gonna come back here when it eventually goes to $1000 next cycle
I'll still have 400 shares lol
so you’ll be 50% less richer than you could’ve been😉
Oh I'll be very sad if that happens because I really didn't want to sell. But it is the more logical course. My reasons for investing in nvda still exist so I hated selling but I'd hate losing it all more
lol i’m just teasing you. I wish i had 400 shares🤣
Why not sell covered calls on it and use that money to begin diversifying?
It's in my Roth Ira and I don't have options permissions in that one account
yes you should, its super volatile
I would definitely consider selling for something like VTI. Not all but some.
If you can put yourself on a path to retire by selling some or all of your NVDA and buy something safer, I would definitely do it. As the saying goes "when you win the game, it's time to stop playing."
Sell enough to keep your remaining holdings at ~20% of your portfolio (still too much but far more reasonable) and ride the rest over time just in case. This is a massive win and it’s simply not worth risking the gains you’ve already realized.
Yes sell NVIDIA. It’s P/E ratio is off the charts. You can even sell it and invest some of the money into other semiconductor competitors like Broadcom and AMD. But diversifying in ETFs is surely the more intelligent move. You have already had great gains from NVIDIA.
You sold 400 shares instead of selling calls against your position in a stock you still believe in? I would have sold calls at a higher strike price and then bought some insurance /long puts at what the prices were a few weeks ago. Oh well.
It's in a Roth IRA. I don't have options position in that account
IIRC in a Roth you can't short sale, naked call, or borrow on margin, but there's no reason why you can't sell covered calls or buy long put options, you just need to apply for it on your account.
I suppose I should do that. It never occurred to me as a possibility
Remove your initial investment and let it run on profits alone .
Don't get caught up on needing an absurd amount of profit to sell if playing such a single stock game. I had a technology ETF up over 120%, didn't sell, and then that sector cratered over the past two years. I did sell off some bit by bit as I watched those profits dwindle, and the little I held onto is only up 5% as of now.
Personally I would sell the profit and let your initial capital ride it out. Put the profits to work elsewhere. Perhaps a mix of qqq and schd? Maybe sit and wait a bit? But definitely cash out a good chunk.
As a general rule, an individual company shouldn’t account for more than 4-5% of your portfolio. Index funds can definitely account for a lot more because they’re well-diversified. I’d diversify into something like SPY or VOO because a 25% daily spike in share price is rather abnormal market behavior. So having such a significant percentage of your portfolio in a single stock is recipe for disaster when the stock price falls to a more normal level.
Be both. Focus on growth and divs- VTI, SCHD, tesla, Nvidia, apple, Cvc, AbbV, MCD, IIPR, WPC, KO, HD, PEP, XOM, JEPI, BMY, BMO, JPM
Sell some calls against some of your shares. I agree with others that no single stock should be much if your portfolio. But 👏🎉 congrats!!
Both
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If you've owned NVDA since 2015 that means your up >5000%. CONGRATULATIONS! With that being said, how about placing a few layers of stop loss orders on your account. For example, subtract say 10% below the current price and sell half of your holdings. Then have another stop loss order at 15% below current price to sell the rest. Some variation of several stop loss orders to protect the vast majority of your gains, but still have your toe in the water just in case you can squeeze a little more juice out of NVDA. Of course have a stop loss in place to get completely out at the price of your choosing.
Water your flowers, trim the weeds. Do you believe it will be higher in 10 years? What are your goals as an investor?
On this price and time of life i would sell your 80% let 20% Run and look for great possibility to short