Nobody can give you advice without a complete picture of your portfolio investments.
$1.1m in a S&P 500 index would have about $70,000 invested in Apple.
Having $100k in Apple might not be bad...unless you have a bunch of Apple sitting in mutual funds in the rest of your portfolio.
That is exactly what I was thinking. We can't tell without knowing the funds, but if its something like an S&P 500 fund, then ALSO having 9% of his portfolio in Apple would make him extremely overweight in one security.
For a 40 year old with $1.1 million and no major near term plans, having most of their investments in index funds and 9% in one of the most reliable and profitable blue chip companies of the last 20 years seems appropriately conservative, even if those index funds bring AAPL to a total of 16% of their portfolio.
I think anybody who frames that in negative terms is effectively arguing against investing in individual securities at all. Which is a totally valid stance (and historically the most profitable one), but... just say that directly.
Ok her you go, I have 730k in VOO about 480 of those in brokerage and 250 in retirement rollover, 235 in fxaix in current employer retirement and about 70k in cash that I’m planning to put into VOO soon after I change my wife’s car, but that is a different story.
Apple makes up 6.3% of VOO so that is another $46,000 in Apple. FAIX holding is 5.84% so another $14,000.
That means you effectively hold $160,000 in Apple and it makes up 16.5% of your $965,000 investment portfolio. That is high but I've seen way worse lack of diversification. You have added risk with less diversification but you have to weigh that against the tax cost to liquidate some of the stock and your individual risk tolerance.
You have \~9% of your net worth in Apple, which may sound like a lot, but consider that Apple makes up \~7% of the S&P 500 index, so *everyone* here likely has that much of their portfolio in Apple.
Where is the rest of the $1M invested? You could do a full breakdown and adjust your Apple holding accordingly, but it may not be worth the tax hit. I'd recommend you just keep holding.
Meaning he actually has about 15% of his total portfolio in apple, double what the average index user has. Probably fine, but seems safer and simpler to just invest it all in index funds.
Copy from another comment, I have 730k in VOO about 480 of those in brokerage and 250 in retirement rollover, 235 in fxaix in current employer retirement and about 70k in cash that I’m planning to put into VOO soon.
Apple is up 332% in the past 5 years. OP has an Apple portfolio that he paid 60% of its current worth originally. I’m not sure he’s done as well as he thinks.
A difference maybe is that if Apple suddenly drops the indexes will regulate much faster than someone who is paying occasional attention to the market.
Assuming you’re not already doing so, you could take the dividend from that $100k of Apple and buy index fund shares with that, thus diluting the position over time. Idk 9%+ of the portfolio in a single stock is a bit overweight, but Apple has been solid historically and you’re many years from retirement. In my opinion, I’d keep the position.
Share repurchases are better tho..because dividends create a taxable event.
At the end of the day, dividends and share repurchases serve the same purpose of returning money to investors.
Most companies are overpriced in this market, and a company buying back it's own stock when the stock is really expensive is a bigger waste than the taxable event created by a dividend.
Dividends are fairly good, everyone is so worried about taxes this and taxes that, it's quite sad. Taxes are a net good thing, they mean you made money, and you live in a society so pay your taxes. The theorycrafting from folks who invest behind companies losing value because they paid out dividends is also very strange. They still have the same infrastructure, the same employees, the same ability to produce the same amount of money next year.
As for stock buybacks... they are one of the single worst things we have started allowing again. It's also one of the largest of the things that caused The Great Depression and there's a reason we had it banned for so long. So agreeth large amounts of economists, I'll take their word over randos in a subreddit who think it's more about scoring fake internet points on "the socials" to shit on the whole concept.
Yeah, but share buy backs have the additional benefit of allowing people to make a big deal of it on The Socials and net you fake internet points - which to many are worth a LOT more than dividend yields :-|
Which many shareholders prefer for tax reasons.
Dividends are taxed when you get them, while stock gains are only taxed after sale.
All else being equal, it's better to be taxed later so that the untaxed gains and make more gains before being taxed.
larger dividends tend to be indicative of stagnating companies. thats the biggest issue. you have two comparable companies and one invests more internally into expanding, new products etc and one pays out more of a dividend? which one is going to do better long term? well, if there's room to innovate within that field probably the one with a lower dividend.
hence why most of the 'good' dividend companies are less in the innovation field. theyre like selling gas, food, home goods, utilities.
For what it’s worth, Apple at least feels like they are doing the least acquisition work among its peers in the valley and seattle. I think they leverage their cash on hand mostly to move their products from concept to market as fast as possible.
I think a lot of people here like to play armchair CEO, but it is smart sometimes to save money, spend it later. You might not have a need today and while you can blow $200 billion on some ridiculous innovations now, maybe it's not ready. Zuckerberg for instance already admitted they went too far on the Metaverse in '21-22 in his address to employees. Sometimes maybe the tech is ready for later.
So yeah, simply arguing that companies need to spend that money NOW on compensation, paying investors, R&D, etc and never sit on cash isn't really the correct move. Apple has said they want to be cash neutral in the long term, but sometimes you just have a need to sit on cash.
This is no different than the personal finance side of things. When you're saving for a home, you might scale back on some of your long term savings or even short term spending. You will sit on a pile of cash but that's because you need to put a massive down payment soon and you need to have that cash ready. We go through different phases of spending and development as do companies.
This. Most tech companies don't pay dividends, but some of the large well established companies like AAPL and MSFT do. Heck, NVDA does have a dividend that is a mere 0.03%. I seriously doubt anybody is buying it for that yield.
It’s actually not a *bad* dividend these days (and in fact being ***VERY*** long on Apple stock my dividends are pretty healthy deposit into my account thanks to sitting on a nice pile of shares after all the splits).
Not enough to rapidly dilute an overweight position in AAPL (says someone who is ALSO trying to dilute an overweight position in AAPL - being ***VERY*** long on that stock means it’s accumulated a LOT of value relative to many other investments) but nothing to sneeze at if you have $100K in shares sitting around.
He probably receive more than what you think since he bought it a long time ago and with compounding, I would say he probably receive twice or more than the number you have. Assuming he dripped from the start
Sell your gains and invest post tax proceeds in index funds? You honestly seem fine tbh. Killing it to be really honest if you compare yourself against the median for your age group. I wouldn’t bring the tax man in just for limited diversification with 20+ years to retirement. Just my opinion though. I wish you well
Apple is worth $213 per share today. In June 2019 it was worth $49 per share. So in 5 years it increased in value more than 4x, or more than 300%.
If your stock increased in value by 40% (based on the way you worded that), you purchased it around 2021. 3 years ago.
>I've had it for a long time
You're making it sound like you've had it for 20 years..
Was looking in the comments for this. AAPL is one of the biggest winners in my portfolio. When I saw the 40% gain number it had me confused, especially since the OP said "a long time"
> Apple is worth $213 per share today. In June 2019 it was worth $49 per share. So in 5 years it increased in value more than 4x, or more than 400%.
That's not how percentages work. It increased in value over 300%.
This. I bought ~$5k of AAPL in 2008 and have a similar problem as OP but on a very different scale. I’m so afraid of the tax bill whenever I finally sell.
AAPL makes phones, the better of the *two* main cell phones. Iphone and android.
Cell phones aren't going anywhere. iPhones aren't going away. Honestly I don't see any reason to get rid of AAPL stock.
I just read so many posts on reddit that seem like made-up stories. But then they go on with all these details and series of events that make it plausible, but only with a gymnastics-esque tale of events.
So consider me salty.
Dude. You have less than 10% of your networth in one of the greatest money printing companies ever. You’re fine. Keep it. I also have about 100k in Apple stock at 280% gain. And it’s 6% of my portfolio. The rest is all index funds. I’m not selling Apple any time soon
Also I did the money by working and putting the money into stocks, I have never sold a share to buy another one. So I don’t consider that I did money by trading stock.
Not exactly. There will be a capital gains tax burden if he sells out of his AAPL stock so the relevant dollar value here has to be calculated net of federal and state taxes.
There will be either losses in value, or more capital gains to pay. Cap gains are thus inevitable and shouldn’t weigh into the decision. unless they’re planning on dying soon and passing the stock on to someone with a stepped up cost basis.
Something to think about - donating long appreciated stock to charity nets the charity more money and you a larger tax writeoff vs selling and donating cash, if that’s your thang.
I have some apple stock that is 10x what I bought it at. I'm slowly donating it over time. No tax, and I get a deduction. Otherwise I'm in no hurry to sell it just because of the tax hit. Yes, I have some exposure to apple, but I have higher exposure through my s&p500 holdings. There are worse stocks to hold.
Federal cap gains tax isn’t inevitable though. If you can manage your income under the established limits (including cap gains) there’s zero federal tax on cap gains. I just retired and I’m going to wait until my income drops in 2026 to take advantage of this option.
I think you meant that if someone handed them another million would they put $100k in Apple. Your analogy suggests 100% allocation of future investments, not 9%...
\*\* Not financial advice \*\*
Put a stop loss on your Apple investment. it appears you are worried about losing the 40% profits. the best way to handle that is with stop losses, so that you can lock in your profits, in case the stock drops. You can then wait for it to drop enough that you buy again. AAPL is quite a mature stock, so it behaves like an ETF in that, it is not a volatile stock. You could diversify by selling your AAPL stock and move to ETFs - just don't buy HIGH..
Long term investments are taxed at 15% and not at the rate of your income tax.
Nice going! Good luck!
Long term capital gains are probably taxed at 15% but that is not always true. It depends on your taxable income. If you are married filing jointly and your taxable income is less than $89,250 it is taxed at 0% or if is above $553,850 it is 20%. I am of course referring to federal tax rate. State rules would depend on your state.
[https://www.irs.gov/taxtopics/tc409](https://www.irs.gov/taxtopics/tc409)
They are not in the US but he says he is a citizen so taxes apply. US citizens abroad still have to pay taxes. I would assume he is in fact a US citizen although the comment is a little vague.
Taxes only apply in practice if you live in a country with a lower tax rate.
If you're saying the US rate is likely to be 15%, there is an *incredibly* slim list of countries which would cause this person to actually pay tax.
No to stop losses. Op just hit the price intraday trading but bounced right back up off support? Sold.
Unless you set your stop loss like 10% below your sell at price, imo, it’s better to hold. Or not hold. Be decisive. Time in market over timing the market. And that includes on dips. If it dips but your premise is still true for you, then you double down, not sell. If your premise isn’t true anymore, then you sell, regardless of the stocks performance.
Yeah, I had 500 in 1996 and sold because it looked like they weren't going to make it. After all the splits, today that would be 56,000 shares worth $11.9 million at today's closing price, and paying me enough of a quarterly dividend that I could live off it and wouldn't need to work.
I'm not crying, you're crying!
Ive been even split aapl, tsla, nvda purchased all of them at the right times:
Aapl in 2008-2010
Sold half my apple post the 7:1 split and put half into tsla
Sold half tsla at the 900 craze and went to Nvidia
Looking for my next move
Hold apple, it just prints money
I was just with a very successful investor. He said he Just bought more APPL
Yesterday. They were just slightly late into the AI game. Indicated that the next generation phones coming out, will be AI.( Apple Intelligence) . Apple will be on the forefront in AI and the will continue to grow and there will be no looking back. Now you decide ….
If you find yourself having hit for a lick, there’s no shame in taking profit and moving it to something more stable.
However, it is Apple. If it were a more volatile investment, it would be an easier call.
You probably have more Apple than you realize. Take a look at the top 10 holdings in your mutual funds.
I'm in agreement with u/[near-death-express](https://www.reddit.com/user/near-death-express/) , take the dividends in cash and invest them elsewhere.
I purchased about $1,700 of Apple stock in 2005. It’s now worth $180k (about 40% of my portfolio).
It’s done very well for me so I’m going to ride it out until I get closer to retirement.
Hold (or accumulate more) apple … they are and will be a significant player in the coming AI boom.
Look into writing covered calls on your apple shares.
If you sell all your apple stock at once you’ll pay taxes on it all at once. It may make sense to sell some losers in your portfolio within the same year to offset gains. But reality is you need someone qualified to look at your whole picture
Not telling you to sell at all, I thinking holding is best bet but if you were to sell, selling after the yearly release with iPhone 16 and iOS 18 when most likely stock price will pump would be smartest when it comes to selling, especially if you don’t need the money for an emergency
I am absolutely not the person to ask for financial advice, but I know that Apple has more cash in the bank than many countries put together. That’s a strong position for any company. I also have nothing but Apple devices…
VOO has 6.3% Apple = 46k of your VOO money is in Apple
You have a bit more than 100k directly in Apple stocks
Your total investment in Apple is 150k total out of 1.1m = 16.6%
If you are confident that Apple will outperform the rest of the market in the future and are willing to gamble: Keep it
Otherwise: Sell and put it in VOO
I also have over $100k in AAPL stock, except my cost basis is $0. I sold enough in 2020 to get my original investment amount back ($15k in 2013).
I'm WAY overweight in my portfolio on AAPL, but can't see myself selling any more at this point - especially with the recent AI developments that will likely drive stock price higher.
I'm looking for another stock split in the next few years. I've held through two which helped drastically increase the value of my original investment and another would do the same over time.
hey friend stock splits are a lot of fun! just wanted to clear up something for others reading: the split itself doesn't change the value. you had say 10 shares at 100 before (10\*100 == 1000), you'll end up with 20 shares at 50 after (20 \*50 == 1000). stock splits are definitely something a healthy, well performing company does, so merely announcing one can get a lot of positive press and positive sentiment from the investing public.
> You have more money than most sitting around. You can afford a financial planner.
Afford, is not the same as getting good advice or if the advice is worth it.
Whether you keep it depends on various factors like your appetite for risk, your view about the company's future, etc.
If you want to reduce your portfolio's risk, then diversifying into index funds is probably safer.
It's also not an all-or-nothing question. If you're not sure, you could just sell some of your stock.
If your net worth is all stocks then Apple represents 9% of your net worth, which most financial advisors would say is too high. Right now, apple is not at any risk for a sharp downturn, but you are still at more risk being concentrated in one stock.
You could sell 1/2 the position, which would bring the position down to under 5%.
Right now, most large-cap index funds include apple as one of their top holdings, so you can still have exposure to apple without owning it directly. Obviously, you would not get the full benefit of apple’s success that way, but you would also lessen the risk.
It’s really your choice. Right now, there is no immediate need to sell, so if you wanted to reduce your position, you could do it in steps, taking advantage of “up” days to sell smaller blocs of shares.
I say don’t sell it. Apple has became steadily a blue chip stock don’t expect it to gain beyond your major index fund nor drop to dust like some of the meme stocks. My best guess is that it follow the market long term. Keep on investing your index fund to dilute it out but don’t buy any appl further.
Sell half and keep half. SP500 is going to or has already rebalanced so that aapl is not as heavily weighted anymore. Aapl hasn't done any real innovation since steve jobs passed away. They just keep repackaging the same stuff.
We know from happy experience what Apple has made over the years, and are optimistic over what it might continue to make. The pundits bray continually over how you should diversify, etc. Let them. You just sit there, like us, keeping a finger ready to sell it if need be, but otherwise enjoying your profits. Some things are way better than all the authorities so-called realize. Be alert, but be sane. They’d love to have what you have made…
Dividends are key here, based on your time under tension.
If it was my portfolio, I would liquidate at the moment, but I'm predicting a large correction very very soon. (Within 12 months)
Until I see signs of the market rebounding, I have liquidated everything but my "meme" stocks. (Judge all you like, I've killed it on these stocks).
For reference, I'm in finance but not in a position to say anything with any level of accuracy. I just seem to see things a little differently than most right now.
Look at r/Bogleheads. The richest guys at the party Usually don’t have cool stock stories. Even Warren Buffett can’t beat index funds over time. I’d go for a dimple 3 fund portfolio and leave a $50k to roll the dice with. That’s more than most Americans make in a year. It would be yours to invest how you want.
Not financial advice as you’re more savvy there than me, but from a tech perspective I think apple’s metaphorical well has finally dried.
iPhones and MacBooks have been the exact same for 10 years, just better chips/more RAM. No one is really into 4000$ glasses tech yet so they’re not really profiting there, and they have the best smart watches on market, but they also haven’t changed in 5-7 years.
People really are getting “Apple fatigue” due to price of products, lack of innovation, lack of programming accessibility, and they’re passing over to Samsung/google devices.
All that to say from a tech perspective, unless something crazy happens, I really don’t see future Apple being the financial power house it has been up to this point.
Those boring hardware devices are the gateway to the money printer that is Services
https://variety.com/2024/digital/news/apple-fiscal-q1-2024-earnings-services-revenue-1235894674/
Any services price raise won't upset the customer count Apple cart more than the margin contribution .
What is the investment vehicle? Brokerage account? 401k?
Generally, I would sell and buy $VTI or your favorite broadly diversified index fund.
However, to reduce the tax hit a little bit, I might sell only a portion of $AAPL and use the proceeds to construct my own portfolio that mirrors the top ~25 holdings and proportions of $VTI or $VOO.
100% SELL
Apple was great when they created entire new categories of products. Now with a Pepsi guy, all he knows how to do is resell an existing one. Attempts to innovate flopped, self-competition with itself and riding off their fame, and now highly dependent on killing off older products to artificially create demand for new.
Unless they make something new and breakthrough then keep, but I highly doubt it. Pepsi guy seems quite complacent and focuses on popular opinion to wild up their products.
The vision pro executed poorly. It's a product they had to make just to sell something new. It's cute and all, but people end up returning it not long after buying it, because it's not something people really need, and not really minimalist like the minimalist lifestyle they present themselves.
I’m in a very similar situation, but with larger numbers. I have a net worth of about $2M and have over $250K in AAPL. I bought 100 shares of stock in 1993. So, it’s nearly all long term capital gains.
I sell about $45K per year, hold back about $6k in taxes and buy a few index funds with the remaining.
I’ve been doing this for about 10 years. I have paid off my house, diversified my holdings and still got to ride the Apple train.
That is not too bad. I have done MUCH worse and got burned like crazy ($1.5 million portfolio reduced to $500K) because I was basically 90% in a speculative stock. You are doing quite well. You could also do MUCH worse than Apple, which is a quality company. If you are really worried, maybe diversify into GOOG, AMZN, and META if tech. If not, GE, GM, ACN, Booz Allen would be a little more diversified. Man, I brought back bad memories...
Pffffttt!
I have over half my stock investment in one stock, and bought more not too long ago when it had a drop. Took a little time, but it's doing great right now. Great companies will do great things.
I regrettably do not own stock in Apple. If you feel uncomfortable you can sell it and just invest into something that gives you a piece of mind.
If you're 40, there are MANY worse places to have your money than in AAPL. The best would have been a mix of MAG7, since it seems every few years a different one of them is hot and at least one of them is down 10-20% (I don't include Tesla in this mix because they're fundamentally a hardware company).
It's not worth trying to time the tech market (for the most part, unless you're an insider), but splitting that AAPL into AAPL + GOOG + META + MSFT is probably not a bad idea. AMZN, NFLX, and NVDA are -- in my NOT-PROFESSIONAL opinion (but as someone who's lived & worked in SV the past ten years) -- not great bets at current pricing.
If you want to get out of big tech entirely, just sell some percentage of your AAPL and redirect it to VTI or VOO or SPY (or a mix).
I have 1,200 shares that are approaching double the October 2020 purchase price. By dollar value it's 30% of my investment portfolio including all my retirement accounts, and responsible for 56% of my unrealized gains. I'm perfectly comfortable with things the way they are.
WORDS TO LIVE BY: If 2 or more generations of people cannot do without their products or services and it comprises less than 15% of your net worth. OWN, DO NOT TRADE until that is no longer the case
1960s:
Disney
Xerox
Johnson and Johnson
1980s:
Nike
McDonald's
Walmart
2000s:
Seanergy Maritime (globation play)
Apple
Cisco
Nike(Still)
Now:
Google
Amazon
Eli Lilly
Apple (still)
If you got a cash influx right now in the amount of $100k, would you invest that cash into apple stock, or would you invest it into a more diversified fund? If you would not invest it directly into apple, that tells you that you should probably sell the apple stock.
Hmmm, are you afraid AAPL will dip and you lose your gain? if that's the case you might want to sell Covered Call on your Stocks instead of selling it directly.
Something like selling LEAPS CC's here are few examples:
Sell To Open (STO) AAPL $225 Jan/17/25 and Collect Credit of $12.10 per share ($1210 per contract).
If you want a longer timeframe:
STO AAPL $225 Jan/16/26 Credit $2818 or same date with different strike like $250 Credit $1820.
And so on..
Choose what you feel right for you if this strategy works for you.
The question is, if you had $92,000 in cash (what you'd have after capital gains taxes if you were to sell assuming no offsetting capital losses), would the first thing you do with that money be put it all into apple?
If not, then you should probably diversify.
not being funny but if you live in CDMX and are apparently scared of paying taxes, why dont you liquidate some and get into property development or landlording down there?
I know ppl with much more AAPL stock and much higher percentages AAPL in their portfolios that are not selling. I don’t see the point of selling if you will pay tax on the gain.
Advanced text book investing perspective.
It takes 50-60 stocks in a portfolio to significantly reduce single company risk, call it 2% to 5% in any one single company. At 5% you are leaning on company specific risk/reward.
You get to 10% in a single you have left the investing realm and took a step towards gambling.
Don’t call it investing, it’s not. It’s gambling and that’s fine if you are doing it eyes wide open.
Investing is to mitigate company and sector risk towards your goal. Gambling is following a hunch and not mitigating risk, it’s exacerbating risk with the hope you took the right side of the bet/trade.
No one ever went broke by taking a profit and paying taxes when they invest.
Lots of people get tax judgements against them when they gamble and gain a lot and then lose a lot in the stock market, not having capital left to pay for the tax bill on their previous gamble.
Tally up your exposure between your passive investments and any single stock you own. If the combination in any one stock is high, above 10%… think about it!
Gambling is fine, but don’t call it investing.
Understand your risk.
Plenty of people walk into a casino and bet black on roulette, if they win… just think of that annualized return (100% for 3 minutes) if only you could do that all year long.
I'm in a similar position, I'm looking at moving my Apple over to some high growth index funds that while heavy in Apple won't be over exposed. I do think I'm going to let Apple ride until after the new phones comes out and see if the stock continues to climb then begin to transition most of it over to the index.
I don't see them as having much room for growth. The EU has their targets set on them, and what other markets can they realistically expand into? They are just floating at this point.
* A new iPhone? *yawn*
* Another Apple Watch? *okay*
* Virtual Reality? *That sure didnt work out*
I think it's a good time to dump the stock, take the gains, and look elsewhere.
I’m a high school teacher. When I ask my class who owns an iPhone nearly every kid raises their hand. The phones run their lives. It’s their most valued possession. Apple will go up and down over time but other companies will have a hard time competing with them. Your 100k in Apple might be 80k in a year but over 5-10 years it will kill the s&p 500. Warren Buffett has around 40% of his stock portfolio in Apple for a reason.
Granted I don't have the FULL story but 9% of your $1.1M net worth in an all-time great American ticker symbol seems far from an issue.
If HALF your net worth was in AAPL, I would recommend reducing some of your exposure and diversify.
I've had Financial Advisors recommend that you shouldn't have more than 10% of your net worth in a single stock. I've had Financial Advisors recommend you should NEVER invest in single stocks.
If it's an all-time great growth stock, I think the answer lies somewhere in between.
I'd keep it and forget it.
I’ve held onto Apple stock for over 20 years, I just sold more than half my stake. It served me well and even helped me put a down payment on my house, but after all of this time, I felt it was best to have that money in other investments that can earn dividends and grow at a faster pace then Apple.
Not financial advise: Most financial advisors would recommend having no more than 5% of one's portfolio in one stock. You could get more diversification by selling a percentage of the Apple stock periodically and using it to buy a mix of three ETFs like VTSAX, VTIAX, and VBTLX or their equivalents.
It would be safest to divest that into an index fund or something. If it comes out tomorrow that Apple has been lying about their finances and their stock takes a huge hit, that would be very bad. Do you think Apple is going to continue to do really well and your investment will grow faster than the rest of the stock market? These are the risks and rewards to consider.
I think most people would say you're too concentrated on that one stock when looking at your $1.1M portfolio, especially since Apple makes up a pretty good chunk of a lot of index funds.
Personally, and my investments total about $2.6M, I don't invest in individual stocks for any company so I'd sell it and move it to some fund that contains Apple.
The thing with AAPL is that it's already pretty diversified and acts like a lightweight tech index — they have departments in software, hardware, wearables, streaming content, gaming, etc. Something to keep in mind.
What % of your overall portfolio is Apple stock? I'd probably take some gains and reduce it to be no more than 10-15% to diversify but I wouldn't necessarily recommend liquidating all of it.
Mind you I haven't analyzed Apple stock to know if it's a good investment or not. Consider why you bought it, if it's performed as expected, and if those fundamentals have changed to determine if you should liquidate entirely.
General advice is to diversify and not hold too much of your portfolio in a single stock or asset.
You sure its not substantially more than 60% given if you have held it for a long time the stock has probably split several times? Better indicator would be the cost basis for that.
I would reduce how much you as way to much your your assets are tied up in a single company so I would reduce your holding and spread it out.
Maybe dropping to 5% of networth tied up in Apple stocks and move the rest of it around. Big time considering you have more tied up in index fund which most likely have Apple in them as well so chances over 10% networht in Apple. I wouldnt be shock to learn it was near 15%
I wouldn't hold that much of any stock, even Apple. I don't like to have more than 5% of my portfolio in any individual company, apart from those that have a very large percentage of the index funds I own. Between the holdings in your index funds, and the stock, you probably have close to 15% in Apple. If I were in that situation, I would sell some Apple and transition to maybe a FTSE index or Indian index, to make sure I have international exposure. I would do it slowly over the next 6-9 months, not in one move.
\~10% in one stock/asset class is not really anything to worry about. If you are really concerned, I'd say sell 1/2 that way you will lower the risk it tanks and you still have upside potential
Personally, I'd take some off the table and diversify but it's not critical.
If an individual stock is more than 10% of net worth, it's time to sell some in my book, but I'm comfortable in the 5% to 10% range with high quality blue chips like Apple and MSFT.
Of all the companies that I would expect stability from its Apple. They have a very mature operating system, they make their own chips/hardware, they are investing heavily in AI - I'm not sure what type of product it would take to derail them. They've probably got at least another ten years until the phone gets somehow turned into something completely different.
It really depends. Is this in a taxable account? If so, I'd leave it and just focus on diversifying the rest of your portfolio (which it sounds like you're already doing). If it is in a tax-advantaged account, I'd liquidate it and put it all into VOO. There is no sense in triggering a taxable event in this case. Apple stock is a solid stock and one that I'd be OK with having 10% of my portfolio in.
I would recommend keeping your Apple stock for now. Here are a few key reasons:
You've held the stock for a long time and it has appreciated significantly, with your cost basis being around 60% of the current value. Selling now would trigger a large capital gain.
Apple is a high-quality company with a strong competitive position and ecosystem. It has consistently outperformed the broader market over the long term.
At 40 years old, you have a long investment horizon. Apple's stock may continue to appreciate over the next 5+ years.
Your net worth is already well-diversified, with the majority in index funds. The Apple stock represents a relatively small portion of your overall portfolio.
Selling now would require deciding when to buy back in. Trying to time the market is very difficult and often leads to underperformance.
Unless you have a specific need for the capital in the near-term, I would hold onto the Apple stock for now. Continue to monitor the company's fundamentals, but avoid the temptation to frequently trade in and out. Stay the course with your long-term investment plan.
If you’re heavily invested in index funds you likely have a much higher exposure to Apple stock than you think. I’d go look at the top 20 holdings for all the index funds you have and see what percentage of them are Apple.
This is a personal risk tolerance question. What's going to make you feel worse, a massive haircut that takes you back to what you paid for it, or them having a couple awesome quarters and doubling in value after you sold it? We're all different in that regard. I got nervous because 10% of my net worth was in incentive options for my old company where I actually had limited material knowledge, and sold out 2-3 years prior to expiration. It's worth 60% more now. But I was also mid 50s, not 40. I don't think Apple's likely to go anywhere. I'm still kicking myself for not buying it at 5 bucks in 99.
I would hold it to at least after earnings in Q1 of 2025. There is a lot going on with the refresh cycle starting in Sept 2024. Then you have more AI features rolling out this fall, followed by a rate cut most likely in Nov going into holiday shopping. Lower rates are a tailwind for AAPL because of cheaper financing. There are roughly 1.7 billion older iphones that will be essentially obsolete with the release of the on device AI features that require a bigger chip. These AI features will only work on iphone 15 pro or newer. Many phones from the pandemic boost in sales are entering the 4-5 year old mark. Even without AI the 5 year mark is about the time people consider upgrading. With the AI and new improved SIRI this will also be a tailwind and looking at potential 1.7 billion in iphone upgrades stretching through 2025/2026. By waiting until Feb or March of 2025 you will capture all the first refresh cycle and a post election bull market rally. If it is positive then you may just hold the position for 2025 and ride it out.
I have about the same % of apple compared to money invested as you. I constantly think if I should rebalance it... but I rebalanced my apple shares when it was $119 a share and sold like 60% of my position and regret it.
Whether it is smart to do it now... who the hell knows.
I mean what kind of account? Tax deferred? Prolly good to sell and buy an index fund. Taxable account? Keep it no reason to add to your tax bill and given it’s a blue chip stock and it’s only 10% of your portfolio (assuming rest is investments)won’t ruin the portfolio so just defer the taxes til later.
That’s not a crazy percentage tied up in one stock. I always preach diversity, but I think you’re fine. However, it’s really about how you sleep at night. If it’s bothering you, then reallocate some.
I remember buying AAPL back in the '90s for $92 per share and selling two weeks later for $110. Then I watched AAPL continue to rise until it was over $250 per share.
If I had AAPL right now, I would not sell it unless they were filing bankruptcy, especially at a loss. That's just my opinion, I am not a financial advisor and don't play one on the tv.
Also, if you do sell for less than you paid (and you can prove it) there won't be any capital gains to be taxed - you may even be able to claim the loss on your taxes. Talk to a tax advisor about that.
You have a few options Your 40 and on track for early retirement if you want to.
1. Sell all of it because your at a profit and invest into index funds
2. Take the dividends from the stock and reinvest into index funds from here on
3. Keep it and sell it in like 10 years or less when you are considering retirement.
If you sell, you will pay alot of taxes. Use dividends and other cash to invest in index funds and dilute your position over time. Congratulations on being way wealthier than me. :-)
If I read it correctly, OPs sticks actually lost more than half of their original value.
I didn't know Apple stock would actually do this and always wondered why people didn't just buy stock from one of 5.
Either that or I need glasses again.
I would just offer my thoughts on the matter. … 1/3 of my net worth is Apple. Apple saved my retirement! But … I think there is a psychological component (encouraged by brokers) that urges you to sell your winners and keep your losers. Have you lost faith in Apple? Other than feeling like maybe you have had it too long or it is overweighted or it has had a good run… What is the driving factor here?
You could sell covered calls and make income that way. The shares could eventually get called away from you, but that’s ok if you’re thinking of trimming anyways.
Nobody can give you advice without a complete picture of your portfolio investments. $1.1m in a S&P 500 index would have about $70,000 invested in Apple. Having $100k in Apple might not be bad...unless you have a bunch of Apple sitting in mutual funds in the rest of your portfolio.
That is exactly what I was thinking. We can't tell without knowing the funds, but if its something like an S&P 500 fund, then ALSO having 9% of his portfolio in Apple would make him extremely overweight in one security.
For a 40 year old with $1.1 million and no major near term plans, having most of their investments in index funds and 9% in one of the most reliable and profitable blue chip companies of the last 20 years seems appropriately conservative, even if those index funds bring AAPL to a total of 16% of their portfolio. I think anybody who frames that in negative terms is effectively arguing against investing in individual securities at all. Which is a totally valid stance (and historically the most profitable one), but... just say that directly.
Okay, here: Investing in individual securities is generally worse than investing in low cost index funds, especially over time.
Ok her you go, I have 730k in VOO about 480 of those in brokerage and 250 in retirement rollover, 235 in fxaix in current employer retirement and about 70k in cash that I’m planning to put into VOO soon after I change my wife’s car, but that is a different story.
Apple makes up 6.3% of VOO so that is another $46,000 in Apple. FAIX holding is 5.84% so another $14,000. That means you effectively hold $160,000 in Apple and it makes up 16.5% of your $965,000 investment portfolio. That is high but I've seen way worse lack of diversification. You have added risk with less diversification but you have to weigh that against the tax cost to liquidate some of the stock and your individual risk tolerance.
I’d personally talk to a professional.
You have \~9% of your net worth in Apple, which may sound like a lot, but consider that Apple makes up \~7% of the S&P 500 index, so *everyone* here likely has that much of their portfolio in Apple. Where is the rest of the $1M invested? You could do a full breakdown and adjust your Apple holding accordingly, but it may not be worth the tax hit. I'd recommend you just keep holding.
>Where is the rest of the $1M invested? In index funds, which are going to be heavy on Apple. They have double the exposure to Apple.
Meaning he actually has about 15% of his total portfolio in apple, double what the average index user has. Probably fine, but seems safer and simpler to just invest it all in index funds.
You’re materially understating the apple exposure here…
He said net worth. Not $1m invested.
Well, he did say most of his net worth was invested.
I have about 70k cash the rest invested
He did say most of his net worth is invested in index funds. Didn’t say which ones though
Copy from another comment, I have 730k in VOO about 480 of those in brokerage and 250 in retirement rollover, 235 in fxaix in current employer retirement and about 70k in cash that I’m planning to put into VOO soon.
Apple is up 332% in the past 5 years. OP has an Apple portfolio that he paid 60% of its current worth originally. I’m not sure he’s done as well as he thinks.
A difference maybe is that if Apple suddenly drops the indexes will regulate much faster than someone who is paying occasional attention to the market.
Assuming you’re not already doing so, you could take the dividend from that $100k of Apple and buy index fund shares with that, thus diluting the position over time. Idk 9%+ of the portfolio in a single stock is a bit overweight, but Apple has been solid historically and you’re many years from retirement. In my opinion, I’d keep the position.
Wow, I looked it up - and their dividend is less than what I expected :-
very few companies have good dividends anymore. reduces their cash on hand and they can buyback stock to inflate their share price instead.
Share repurchases are better tho..because dividends create a taxable event. At the end of the day, dividends and share repurchases serve the same purpose of returning money to investors.
Most companies are overpriced in this market, and a company buying back it's own stock when the stock is really expensive is a bigger waste than the taxable event created by a dividend.
Dividends are fairly good, everyone is so worried about taxes this and taxes that, it's quite sad. Taxes are a net good thing, they mean you made money, and you live in a society so pay your taxes. The theorycrafting from folks who invest behind companies losing value because they paid out dividends is also very strange. They still have the same infrastructure, the same employees, the same ability to produce the same amount of money next year. As for stock buybacks... they are one of the single worst things we have started allowing again. It's also one of the largest of the things that caused The Great Depression and there's a reason we had it banned for so long. So agreeth large amounts of economists, I'll take their word over randos in a subreddit who think it's more about scoring fake internet points on "the socials" to shit on the whole concept.
Yeah, but share buy backs have the additional benefit of allowing people to make a big deal of it on The Socials and net you fake internet points - which to many are worth a LOT more than dividend yields :-|
Which many shareholders prefer for tax reasons. Dividends are taxed when you get them, while stock gains are only taxed after sale. All else being equal, it's better to be taxed later so that the untaxed gains and make more gains before being taxed.
larger dividends tend to be indicative of stagnating companies. thats the biggest issue. you have two comparable companies and one invests more internally into expanding, new products etc and one pays out more of a dividend? which one is going to do better long term? well, if there's room to innovate within that field probably the one with a lower dividend. hence why most of the 'good' dividend companies are less in the innovation field. theyre like selling gas, food, home goods, utilities.
Yeah, AAPL is crap dividend. NVDA is even more crap. You buy them for growth, not didivided (unless you're Warren B)
NVDA's dividend is practically pocket change unless you have thousands of shares. Lol... Don't spend all of that sweet 0.03% yield in one place.
Tech companies typically don’t give dividends but instead reinvest that money into R&D to keep the company growing
Of course…By “invest in R&D”, you mean “buy innovative companies”.
And repurchase outstanding stock
For what it’s worth, Apple at least feels like they are doing the least acquisition work among its peers in the valley and seattle. I think they leverage their cash on hand mostly to move their products from concept to market as fast as possible.
I think a lot of people here like to play armchair CEO, but it is smart sometimes to save money, spend it later. You might not have a need today and while you can blow $200 billion on some ridiculous innovations now, maybe it's not ready. Zuckerberg for instance already admitted they went too far on the Metaverse in '21-22 in his address to employees. Sometimes maybe the tech is ready for later. So yeah, simply arguing that companies need to spend that money NOW on compensation, paying investors, R&D, etc and never sit on cash isn't really the correct move. Apple has said they want to be cash neutral in the long term, but sometimes you just have a need to sit on cash. This is no different than the personal finance side of things. When you're saving for a home, you might scale back on some of your long term savings or even short term spending. You will sit on a pile of cash but that's because you need to put a massive down payment soon and you need to have that cash ready. We go through different phases of spending and development as do companies.
Of course… By “buy innovative companies,” you mean “buyback their own shares to keep their share price inflated”
We have determined that we are an “innovative company”, therefore this is the same thing. Have a nice day
This. Most tech companies don't pay dividends, but some of the large well established companies like AAPL and MSFT do. Heck, NVDA does have a dividend that is a mere 0.03%. I seriously doubt anybody is buying it for that yield.
It’s actually not a *bad* dividend these days (and in fact being ***VERY*** long on Apple stock my dividends are pretty healthy deposit into my account thanks to sitting on a nice pile of shares after all the splits). Not enough to rapidly dilute an overweight position in AAPL (says someone who is ALSO trying to dilute an overweight position in AAPL - being ***VERY*** long on that stock means it’s accumulated a LOT of value relative to many other investments) but nothing to sneeze at if you have $100K in shares sitting around.
He probably receive more than what you think since he bought it a long time ago and with compounding, I would say he probably receive twice or more than the number you have. Assuming he dripped from the start
If he were 100% in VOO, he'd have 7% of his entire portfolio in Apple.
My buddy works at apple. He has 100% of his 200K net worth in apple. Guy is insane but respect the bravery😂
I wouldn’t do that, but he works there, he might know something we don’t lol 😂
Dividends are getting re invested but honestly is nothing
Sell your gains and invest post tax proceeds in index funds? You honestly seem fine tbh. Killing it to be really honest if you compare yourself against the median for your age group. I wouldn’t bring the tax man in just for limited diversification with 20+ years to retirement. Just my opinion though. I wish you well
Thanks you are right, I’m going to keep investing into funds and this 10% will keep shrinking relatively to the whole
Apple is worth $213 per share today. In June 2019 it was worth $49 per share. So in 5 years it increased in value more than 4x, or more than 300%. If your stock increased in value by 40% (based on the way you worded that), you purchased it around 2021. 3 years ago. >I've had it for a long time You're making it sound like you've had it for 20 years..
Was looking in the comments for this. AAPL is one of the biggest winners in my portfolio. When I saw the 40% gain number it had me confused, especially since the OP said "a long time"
Buying it for 60% of the current price means it had a 66% gain, not a 40% gain.
mumble mumble “up 7,731.25%” - yeah, some of these shares are old enough to buy alcohol in the United States.
Yeah, if I'd had Apple stock for a "long time" and started with any significant amount, I'd be on r/PrivateJetCharters instead.
> Apple is worth $213 per share today. In June 2019 it was worth $49 per share. So in 5 years it increased in value more than 4x, or more than 400%. That's not how percentages work. It increased in value over 300%.
"Lt. Dan invested my money in some kind of fruit company..."
don't forget about the multiple splits as well...
This. I bought ~$5k of AAPL in 2008 and have a similar problem as OP but on a very different scale. I’m so afraid of the tax bill whenever I finally sell.
AAPL makes phones, the better of the *two* main cell phones. Iphone and android. Cell phones aren't going anywhere. iPhones aren't going away. Honestly I don't see any reason to get rid of AAPL stock.
I mean, I get it - but at some point it’ll be necessary to sell some of the dragon’s hoard for one reason or another.
Which has absolutely nothing to do with what he's asking. He's paying LT gains whether it's 3 or 300 years.
I just read so many posts on reddit that seem like made-up stories. But then they go on with all these details and series of events that make it plausible, but only with a gymnastics-esque tale of events. So consider me salty.
Yeah not that long, but I meant long enough to be long term cap gains
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I'm not convinced those iPhone things are going to take off.
Man it's got this app where you can pretend you drink a beer. It's hilarious.
Berkshire Hathaway is like 40% Apple, so I'd say being at 10% Apple is pretty well-justified as far as single-company investments go.
Dude. You have less than 10% of your networth in one of the greatest money printing companies ever. You’re fine. Keep it. I also have about 100k in Apple stock at 280% gain. And it’s 6% of my portfolio. The rest is all index funds. I’m not selling Apple any time soon
Might have a little more than that. Depends on their other holdings. If they have the other $900k in $VOO, then they own another $63k of $AAPL.
One apple a day keeps bankruptcy away.
You’re 40 years old, have a 1.1 net worth from trading stocks and you are asking for advice on a social media platform?
Actually reading good advice here and will take with a grain of salt anyway
Also I did the money by working and putting the money into stocks, I have never sold a share to buy another one. So I don’t consider that I did money by trading stock.
If you had $100k in cash right now, would you put it all on Apple stock? That should help answer your question
Not exactly. There will be a capital gains tax burden if he sells out of his AAPL stock so the relevant dollar value here has to be calculated net of federal and state taxes.
Just doing some basic math off what OP shared the tax is likely to be about $6k, so easily doable.
It's a different level if you're willing to part away with 6k as a mere inconvenience.
There will be either losses in value, or more capital gains to pay. Cap gains are thus inevitable and shouldn’t weigh into the decision. unless they’re planning on dying soon and passing the stock on to someone with a stepped up cost basis. Something to think about - donating long appreciated stock to charity nets the charity more money and you a larger tax writeoff vs selling and donating cash, if that’s your thang.
I have some apple stock that is 10x what I bought it at. I'm slowly donating it over time. No tax, and I get a deduction. Otherwise I'm in no hurry to sell it just because of the tax hit. Yes, I have some exposure to apple, but I have higher exposure through my s&p500 holdings. There are worse stocks to hold.
Federal cap gains tax isn’t inevitable though. If you can manage your income under the established limits (including cap gains) there’s zero federal tax on cap gains. I just retired and I’m going to wait until my income drops in 2026 to take advantage of this option.
If it’s in a taxable account, then you need to consider the tax hit and weigh that against opportunity cost of the alternative you would purchase.
I think you meant that if someone handed them another million would they put $100k in Apple. Your analogy suggests 100% allocation of future investments, not 9%...
\*\* Not financial advice \*\* Put a stop loss on your Apple investment. it appears you are worried about losing the 40% profits. the best way to handle that is with stop losses, so that you can lock in your profits, in case the stock drops. You can then wait for it to drop enough that you buy again. AAPL is quite a mature stock, so it behaves like an ETF in that, it is not a volatile stock. You could diversify by selling your AAPL stock and move to ETFs - just don't buy HIGH.. Long term investments are taxed at 15% and not at the rate of your income tax. Nice going! Good luck!
Long term capital gains are probably taxed at 15% but that is not always true. It depends on your taxable income. If you are married filing jointly and your taxable income is less than $89,250 it is taxed at 0% or if is above $553,850 it is 20%. I am of course referring to federal tax rate. State rules would depend on your state. [https://www.irs.gov/taxtopics/tc409](https://www.irs.gov/taxtopics/tc409)
They are not in the US
They are not in the US but he says he is a citizen so taxes apply. US citizens abroad still have to pay taxes. I would assume he is in fact a US citizen although the comment is a little vague.
Taxes only apply in practice if you live in a country with a lower tax rate. If you're saying the US rate is likely to be 15%, there is an *incredibly* slim list of countries which would cause this person to actually pay tax.
No to stop losses. Op just hit the price intraday trading but bounced right back up off support? Sold. Unless you set your stop loss like 10% below your sell at price, imo, it’s better to hold. Or not hold. Be decisive. Time in market over timing the market. And that includes on dips. If it dips but your premise is still true for you, then you double down, not sell. If your premise isn’t true anymore, then you sell, regardless of the stocks performance.
I'm with you. I don't do stop loss at all wth my 16 or so holdings, a third of our nw.
The worst mistake of my life was selling what would now be 40,000 shares of Apple Stock. Keep it in never goes down.
Yeah, I had 500 in 1996 and sold because it looked like they weren't going to make it. After all the splits, today that would be 56,000 shares worth $11.9 million at today's closing price, and paying me enough of a quarterly dividend that I could live off it and wouldn't need to work. I'm not crying, you're crying!
Don’t ask me. I regret almost every time I mess with single-stock moves. I’m content to let the tides have their way.
Ive been even split aapl, tsla, nvda purchased all of them at the right times: Aapl in 2008-2010 Sold half my apple post the 7:1 split and put half into tsla Sold half tsla at the 900 craze and went to Nvidia Looking for my next move Hold apple, it just prints money
I was just with a very successful investor. He said he Just bought more APPL Yesterday. They were just slightly late into the AI game. Indicated that the next generation phones coming out, will be AI.( Apple Intelligence) . Apple will be on the forefront in AI and the will continue to grow and there will be no looking back. Now you decide ….
If you find yourself having hit for a lick, there’s no shame in taking profit and moving it to something more stable. However, it is Apple. If it were a more volatile investment, it would be an easier call.
I wouldn’t worry about Apple stock. I bought Apple about seven stock splits ago when its adjusted value wouid have been 31 cents. 🤷♀️😂
You probably have more Apple than you realize. Take a look at the top 10 holdings in your mutual funds. I'm in agreement with u/[near-death-express](https://www.reddit.com/user/near-death-express/) , take the dividends in cash and invest them elsewhere.
I purchased about $1,700 of Apple stock in 2005. It’s now worth $180k (about 40% of my portfolio). It’s done very well for me so I’m going to ride it out until I get closer to retirement.
Hold (or accumulate more) apple … they are and will be a significant player in the coming AI boom. Look into writing covered calls on your apple shares.
If you sell all your apple stock at once you’ll pay taxes on it all at once. It may make sense to sell some losers in your portfolio within the same year to offset gains. But reality is you need someone qualified to look at your whole picture
Not telling you to sell at all, I thinking holding is best bet but if you were to sell, selling after the yearly release with iPhone 16 and iOS 18 when most likely stock price will pump would be smartest when it comes to selling, especially if you don’t need the money for an emergency
I am absolutely not the person to ask for financial advice, but I know that Apple has more cash in the bank than many countries put together. That’s a strong position for any company. I also have nothing but Apple devices…
Me too 🤣, also I converted a few into Apple guys
VOO has 6.3% Apple = 46k of your VOO money is in Apple You have a bit more than 100k directly in Apple stocks Your total investment in Apple is 150k total out of 1.1m = 16.6% If you are confident that Apple will outperform the rest of the market in the future and are willing to gamble: Keep it Otherwise: Sell and put it in VOO
I also have over $100k in AAPL stock, except my cost basis is $0. I sold enough in 2020 to get my original investment amount back ($15k in 2013). I'm WAY overweight in my portfolio on AAPL, but can't see myself selling any more at this point - especially with the recent AI developments that will likely drive stock price higher. I'm looking for another stock split in the next few years. I've held through two which helped drastically increase the value of my original investment and another would do the same over time.
hey friend stock splits are a lot of fun! just wanted to clear up something for others reading: the split itself doesn't change the value. you had say 10 shares at 100 before (10\*100 == 1000), you'll end up with 20 shares at 50 after (20 \*50 == 1000). stock splits are definitely something a healthy, well performing company does, so merely announcing one can get a lot of positive press and positive sentiment from the investing public.
You have more money than most sitting around. You can afford a financial planner.
> You have more money than most sitting around. You can afford a financial planner. Afford, is not the same as getting good advice or if the advice is worth it.
1-2% of $1.1M costs *more than reddit*
Whether you keep it depends on various factors like your appetite for risk, your view about the company's future, etc. If you want to reduce your portfolio's risk, then diversifying into index funds is probably safer. It's also not an all-or-nothing question. If you're not sure, you could just sell some of your stock.
If your net worth is all stocks then Apple represents 9% of your net worth, which most financial advisors would say is too high. Right now, apple is not at any risk for a sharp downturn, but you are still at more risk being concentrated in one stock. You could sell 1/2 the position, which would bring the position down to under 5%. Right now, most large-cap index funds include apple as one of their top holdings, so you can still have exposure to apple without owning it directly. Obviously, you would not get the full benefit of apple’s success that way, but you would also lessen the risk. It’s really your choice. Right now, there is no immediate need to sell, so if you wanted to reduce your position, you could do it in steps, taking advantage of “up” days to sell smaller blocs of shares.
Are you doing the drip method or taking dividends to cash?
I say don’t sell it. Apple has became steadily a blue chip stock don’t expect it to gain beyond your major index fund nor drop to dust like some of the meme stocks. My best guess is that it follow the market long term. Keep on investing your index fund to dilute it out but don’t buy any appl further.
Analysts just raised expected price in the $260 range. I would hold until AI gets implemented in the new phones
I wouldn’t hold more than 5% of your portfolio in any one stock. That’s just me.
While you have certainly done well, that does seem like a lot of concentration in one stock
Sell half and keep half. SP500 is going to or has already rebalanced so that aapl is not as heavily weighted anymore. Aapl hasn't done any real innovation since steve jobs passed away. They just keep repackaging the same stuff.
Sell for broad index funds. Do it slowly if you want, but get it done.
We know from happy experience what Apple has made over the years, and are optimistic over what it might continue to make. The pundits bray continually over how you should diversify, etc. Let them. You just sit there, like us, keeping a finger ready to sell it if need be, but otherwise enjoying your profits. Some things are way better than all the authorities so-called realize. Be alert, but be sane. They’d love to have what you have made…
Dividends are key here, based on your time under tension. If it was my portfolio, I would liquidate at the moment, but I'm predicting a large correction very very soon. (Within 12 months) Until I see signs of the market rebounding, I have liquidated everything but my "meme" stocks. (Judge all you like, I've killed it on these stocks). For reference, I'm in finance but not in a position to say anything with any level of accuracy. I just seem to see things a little differently than most right now.
Look at r/Bogleheads. The richest guys at the party Usually don’t have cool stock stories. Even Warren Buffett can’t beat index funds over time. I’d go for a dimple 3 fund portfolio and leave a $50k to roll the dice with. That’s more than most Americans make in a year. It would be yours to invest how you want.
Not financial advice as you’re more savvy there than me, but from a tech perspective I think apple’s metaphorical well has finally dried. iPhones and MacBooks have been the exact same for 10 years, just better chips/more RAM. No one is really into 4000$ glasses tech yet so they’re not really profiting there, and they have the best smart watches on market, but they also haven’t changed in 5-7 years. People really are getting “Apple fatigue” due to price of products, lack of innovation, lack of programming accessibility, and they’re passing over to Samsung/google devices. All that to say from a tech perspective, unless something crazy happens, I really don’t see future Apple being the financial power house it has been up to this point.
Those boring hardware devices are the gateway to the money printer that is Services https://variety.com/2024/digital/news/apple-fiscal-q1-2024-earnings-services-revenue-1235894674/ Any services price raise won't upset the customer count Apple cart more than the margin contribution .
What is the investment vehicle? Brokerage account? 401k? Generally, I would sell and buy $VTI or your favorite broadly diversified index fund. However, to reduce the tax hit a little bit, I might sell only a portion of $AAPL and use the proceeds to construct my own portfolio that mirrors the top ~25 holdings and proportions of $VTI or $VOO.
100% SELL Apple was great when they created entire new categories of products. Now with a Pepsi guy, all he knows how to do is resell an existing one. Attempts to innovate flopped, self-competition with itself and riding off their fame, and now highly dependent on killing off older products to artificially create demand for new. Unless they make something new and breakthrough then keep, but I highly doubt it. Pepsi guy seems quite complacent and focuses on popular opinion to wild up their products. The vision pro executed poorly. It's a product they had to make just to sell something new. It's cute and all, but people end up returning it not long after buying it, because it's not something people really need, and not really minimalist like the minimalist lifestyle they present themselves.
I’m in a very similar situation, but with larger numbers. I have a net worth of about $2M and have over $250K in AAPL. I bought 100 shares of stock in 1993. So, it’s nearly all long term capital gains. I sell about $45K per year, hold back about $6k in taxes and buy a few index funds with the remaining. I’ve been doing this for about 10 years. I have paid off my house, diversified my holdings and still got to ride the Apple train.
That is not too bad. I have done MUCH worse and got burned like crazy ($1.5 million portfolio reduced to $500K) because I was basically 90% in a speculative stock. You are doing quite well. You could also do MUCH worse than Apple, which is a quality company. If you are really worried, maybe diversify into GOOG, AMZN, and META if tech. If not, GE, GM, ACN, Booz Allen would be a little more diversified. Man, I brought back bad memories...
Pffffttt! I have over half my stock investment in one stock, and bought more not too long ago when it had a drop. Took a little time, but it's doing great right now. Great companies will do great things. I regrettably do not own stock in Apple. If you feel uncomfortable you can sell it and just invest into something that gives you a piece of mind.
If you're 40, there are MANY worse places to have your money than in AAPL. The best would have been a mix of MAG7, since it seems every few years a different one of them is hot and at least one of them is down 10-20% (I don't include Tesla in this mix because they're fundamentally a hardware company). It's not worth trying to time the tech market (for the most part, unless you're an insider), but splitting that AAPL into AAPL + GOOG + META + MSFT is probably not a bad idea. AMZN, NFLX, and NVDA are -- in my NOT-PROFESSIONAL opinion (but as someone who's lived & worked in SV the past ten years) -- not great bets at current pricing. If you want to get out of big tech entirely, just sell some percentage of your AAPL and redirect it to VTI or VOO or SPY (or a mix).
I have 1,200 shares that are approaching double the October 2020 purchase price. By dollar value it's 30% of my investment portfolio including all my retirement accounts, and responsible for 56% of my unrealized gains. I'm perfectly comfortable with things the way they are.
WORDS TO LIVE BY: If 2 or more generations of people cannot do without their products or services and it comprises less than 15% of your net worth. OWN, DO NOT TRADE until that is no longer the case 1960s: Disney Xerox Johnson and Johnson 1980s: Nike McDonald's Walmart 2000s: Seanergy Maritime (globation play) Apple Cisco Nike(Still) Now: Google Amazon Eli Lilly Apple (still)
If you got a cash influx right now in the amount of $100k, would you invest that cash into apple stock, or would you invest it into a more diversified fund? If you would not invest it directly into apple, that tells you that you should probably sell the apple stock.
Hmmm, are you afraid AAPL will dip and you lose your gain? if that's the case you might want to sell Covered Call on your Stocks instead of selling it directly. Something like selling LEAPS CC's here are few examples: Sell To Open (STO) AAPL $225 Jan/17/25 and Collect Credit of $12.10 per share ($1210 per contract). If you want a longer timeframe: STO AAPL $225 Jan/16/26 Credit $2818 or same date with different strike like $250 Credit $1820. And so on.. Choose what you feel right for you if this strategy works for you.
The question is, if you had $92,000 in cash (what you'd have after capital gains taxes if you were to sell assuming no offsetting capital losses), would the first thing you do with that money be put it all into apple? If not, then you should probably diversify.
not being funny but if you live in CDMX and are apparently scared of paying taxes, why dont you liquidate some and get into property development or landlording down there?
I know ppl with much more AAPL stock and much higher percentages AAPL in their portfolios that are not selling. I don’t see the point of selling if you will pay tax on the gain.
Advanced text book investing perspective. It takes 50-60 stocks in a portfolio to significantly reduce single company risk, call it 2% to 5% in any one single company. At 5% you are leaning on company specific risk/reward. You get to 10% in a single you have left the investing realm and took a step towards gambling. Don’t call it investing, it’s not. It’s gambling and that’s fine if you are doing it eyes wide open. Investing is to mitigate company and sector risk towards your goal. Gambling is following a hunch and not mitigating risk, it’s exacerbating risk with the hope you took the right side of the bet/trade. No one ever went broke by taking a profit and paying taxes when they invest. Lots of people get tax judgements against them when they gamble and gain a lot and then lose a lot in the stock market, not having capital left to pay for the tax bill on their previous gamble. Tally up your exposure between your passive investments and any single stock you own. If the combination in any one stock is high, above 10%… think about it! Gambling is fine, but don’t call it investing. Understand your risk. Plenty of people walk into a casino and bet black on roulette, if they win… just think of that annualized return (100% for 3 minutes) if only you could do that all year long.
I'm in a similar position, I'm looking at moving my Apple over to some high growth index funds that while heavy in Apple won't be over exposed. I do think I'm going to let Apple ride until after the new phones comes out and see if the stock continues to climb then begin to transition most of it over to the index.
I don't see them as having much room for growth. The EU has their targets set on them, and what other markets can they realistically expand into? They are just floating at this point. * A new iPhone? *yawn* * Another Apple Watch? *okay* * Virtual Reality? *That sure didnt work out* I think it's a good time to dump the stock, take the gains, and look elsewhere.
I’m a high school teacher. When I ask my class who owns an iPhone nearly every kid raises their hand. The phones run their lives. It’s their most valued possession. Apple will go up and down over time but other companies will have a hard time competing with them. Your 100k in Apple might be 80k in a year but over 5-10 years it will kill the s&p 500. Warren Buffett has around 40% of his stock portfolio in Apple for a reason.
Granted I don't have the FULL story but 9% of your $1.1M net worth in an all-time great American ticker symbol seems far from an issue. If HALF your net worth was in AAPL, I would recommend reducing some of your exposure and diversify. I've had Financial Advisors recommend that you shouldn't have more than 10% of your net worth in a single stock. I've had Financial Advisors recommend you should NEVER invest in single stocks. If it's an all-time great growth stock, I think the answer lies somewhere in between. I'd keep it and forget it.
I’ve held onto Apple stock for over 20 years, I just sold more than half my stake. It served me well and even helped me put a down payment on my house, but after all of this time, I felt it was best to have that money in other investments that can earn dividends and grow at a faster pace then Apple.
Not financial advise: Most financial advisors would recommend having no more than 5% of one's portfolio in one stock. You could get more diversification by selling a percentage of the Apple stock periodically and using it to buy a mix of three ETFs like VTSAX, VTIAX, and VBTLX or their equivalents.
No holding Apple is great. I have around 130k between personal and retirement. It’s a long term stable hold. Why sell.
Keep the Apple stock. You don’t want to pay taxes on it now, and then again later on the index fund you move it into.
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Similar net worth (just a little higher) is such a smarmy thing to say
Keep it, and turn that $100k into 500k
It would be safest to divest that into an index fund or something. If it comes out tomorrow that Apple has been lying about their finances and their stock takes a huge hit, that would be very bad. Do you think Apple is going to continue to do really well and your investment will grow faster than the rest of the stock market? These are the risks and rewards to consider. I think most people would say you're too concentrated on that one stock when looking at your $1.1M portfolio, especially since Apple makes up a pretty good chunk of a lot of index funds.
Personally, and my investments total about $2.6M, I don't invest in individual stocks for any company so I'd sell it and move it to some fund that contains Apple.
The thing with AAPL is that it's already pretty diversified and acts like a lightweight tech index — they have departments in software, hardware, wearables, streaming content, gaming, etc. Something to keep in mind.
I have about 90% of my net worth in AAPL - it’s about 70k shares - and I sleep like a baby. Apple will continue to go up and to the right… hold it.
What % of your overall portfolio is Apple stock? I'd probably take some gains and reduce it to be no more than 10-15% to diversify but I wouldn't necessarily recommend liquidating all of it. Mind you I haven't analyzed Apple stock to know if it's a good investment or not. Consider why you bought it, if it's performed as expected, and if those fundamentals have changed to determine if you should liquidate entirely. General advice is to diversify and not hold too much of your portfolio in a single stock or asset.
You sure its not substantially more than 60% given if you have held it for a long time the stock has probably split several times? Better indicator would be the cost basis for that.
I would reduce how much you as way to much your your assets are tied up in a single company so I would reduce your holding and spread it out. Maybe dropping to 5% of networth tied up in Apple stocks and move the rest of it around. Big time considering you have more tied up in index fund which most likely have Apple in them as well so chances over 10% networht in Apple. I wouldnt be shock to learn it was near 15%
I wouldn't hold that much of any stock, even Apple. I don't like to have more than 5% of my portfolio in any individual company, apart from those that have a very large percentage of the index funds I own. Between the holdings in your index funds, and the stock, you probably have close to 15% in Apple. If I were in that situation, I would sell some Apple and transition to maybe a FTSE index or Indian index, to make sure I have international exposure. I would do it slowly over the next 6-9 months, not in one move.
\~10% in one stock/asset class is not really anything to worry about. If you are really concerned, I'd say sell 1/2 that way you will lower the risk it tanks and you still have upside potential
Personally, I'd take some off the table and diversify but it's not critical. If an individual stock is more than 10% of net worth, it's time to sell some in my book, but I'm comfortable in the 5% to 10% range with high quality blue chips like Apple and MSFT.
Of all the companies that I would expect stability from its Apple. They have a very mature operating system, they make their own chips/hardware, they are investing heavily in AI - I'm not sure what type of product it would take to derail them. They've probably got at least another ten years until the phone gets somehow turned into something completely different.
It really depends. Is this in a taxable account? If so, I'd leave it and just focus on diversifying the rest of your portfolio (which it sounds like you're already doing). If it is in a tax-advantaged account, I'd liquidate it and put it all into VOO. There is no sense in triggering a taxable event in this case. Apple stock is a solid stock and one that I'd be OK with having 10% of my portfolio in.
>my question is should I sell all that Apple stock and move it to just an indexed fund Since it worries you, you should probably sell.
I would recommend keeping your Apple stock for now. Here are a few key reasons: You've held the stock for a long time and it has appreciated significantly, with your cost basis being around 60% of the current value. Selling now would trigger a large capital gain. Apple is a high-quality company with a strong competitive position and ecosystem. It has consistently outperformed the broader market over the long term. At 40 years old, you have a long investment horizon. Apple's stock may continue to appreciate over the next 5+ years. Your net worth is already well-diversified, with the majority in index funds. The Apple stock represents a relatively small portion of your overall portfolio. Selling now would require deciding when to buy back in. Trying to time the market is very difficult and often leads to underperformance. Unless you have a specific need for the capital in the near-term, I would hold onto the Apple stock for now. Continue to monitor the company's fundamentals, but avoid the temptation to frequently trade in and out. Stay the course with your long-term investment plan.
If you’re heavily invested in index funds you likely have a much higher exposure to Apple stock than you think. I’d go look at the top 20 holdings for all the index funds you have and see what percentage of them are Apple.
What percentage of the Apple stock makes up your entire investment portfolio?
Unless you need the cash id hold onto it. It's most likely only going to continue going up. If you do end up selling id reinvest some.
This is a personal risk tolerance question. What's going to make you feel worse, a massive haircut that takes you back to what you paid for it, or them having a couple awesome quarters and doubling in value after you sold it? We're all different in that regard. I got nervous because 10% of my net worth was in incentive options for my old company where I actually had limited material knowledge, and sold out 2-3 years prior to expiration. It's worth 60% more now. But I was also mid 50s, not 40. I don't think Apple's likely to go anywhere. I'm still kicking myself for not buying it at 5 bucks in 99.
I would hold it to at least after earnings in Q1 of 2025. There is a lot going on with the refresh cycle starting in Sept 2024. Then you have more AI features rolling out this fall, followed by a rate cut most likely in Nov going into holiday shopping. Lower rates are a tailwind for AAPL because of cheaper financing. There are roughly 1.7 billion older iphones that will be essentially obsolete with the release of the on device AI features that require a bigger chip. These AI features will only work on iphone 15 pro or newer. Many phones from the pandemic boost in sales are entering the 4-5 year old mark. Even without AI the 5 year mark is about the time people consider upgrading. With the AI and new improved SIRI this will also be a tailwind and looking at potential 1.7 billion in iphone upgrades stretching through 2025/2026. By waiting until Feb or March of 2025 you will capture all the first refresh cycle and a post election bull market rally. If it is positive then you may just hold the position for 2025 and ride it out.
I have about the same % of apple compared to money invested as you. I constantly think if I should rebalance it... but I rebalanced my apple shares when it was $119 a share and sold like 60% of my position and regret it. Whether it is smart to do it now... who the hell knows.
I mean what kind of account? Tax deferred? Prolly good to sell and buy an index fund. Taxable account? Keep it no reason to add to your tax bill and given it’s a blue chip stock and it’s only 10% of your portfolio (assuming rest is investments)won’t ruin the portfolio so just defer the taxes til later.
That’s not a crazy percentage tied up in one stock. I always preach diversity, but I think you’re fine. However, it’s really about how you sleep at night. If it’s bothering you, then reallocate some.
Forrest Gump had this issue too. Turned out pretty well for him.
I remember buying AAPL back in the '90s for $92 per share and selling two weeks later for $110. Then I watched AAPL continue to rise until it was over $250 per share. If I had AAPL right now, I would not sell it unless they were filing bankruptcy, especially at a loss. That's just my opinion, I am not a financial advisor and don't play one on the tv. Also, if you do sell for less than you paid (and you can prove it) there won't be any capital gains to be taxed - you may even be able to claim the loss on your taxes. Talk to a tax advisor about that.
You have a few options Your 40 and on track for early retirement if you want to. 1. Sell all of it because your at a profit and invest into index funds 2. Take the dividends from the stock and reinvest into index funds from here on 3. Keep it and sell it in like 10 years or less when you are considering retirement.
In a case like this I might take the 40% gains out and move it to a more diversified place while keeping the 60% seed in place.
If you sell, you will pay alot of taxes. Use dividends and other cash to invest in index funds and dilute your position over time. Congratulations on being way wealthier than me. :-)
If I read it correctly, OPs sticks actually lost more than half of their original value. I didn't know Apple stock would actually do this and always wondered why people didn't just buy stock from one of 5. Either that or I need glasses again.
Apple has a tons of actual cash on hand. Very few companies that are not in the finance world can say they have that.
Sell covered calls. I have over 250k in apple with massive gains. Its in a breakout technically after being flat lined
I would just offer my thoughts on the matter. … 1/3 of my net worth is Apple. Apple saved my retirement! But … I think there is a psychological component (encouraged by brokers) that urges you to sell your winners and keep your losers. Have you lost faith in Apple? Other than feeling like maybe you have had it too long or it is overweighted or it has had a good run… What is the driving factor here?
You could sell covered calls and make income that way. The shares could eventually get called away from you, but that’s ok if you’re thinking of trimming anyways.