[USER]

I’ve been considering selling my individual stocks to diversify to the safer option of VOO. I was fortunate to make some good gains on Nvidia last year, and also hold Microsoft for the last few years.

My holdings cost me around $90k, and we’re valued at $250k – $270k towards the end of last year. It’s since dropped 20% and is now around $220k.

When the market has a downturn we’re advised not to sell, however would you sell now to buy into VOO whilst the market is down knowing this is the safer option for long term gains for when it climbs back up?

Or would you hold NVDA and MSFT in the hope they recover a bit first?

Just thinking if it’s a good time to buy VOO now, or a bad idea to sell, given the above two stocks are down quite low.

Thanks

[Raffaele]

Isn’t VOO down too? If you have to wait that it goes up again chances are that individual stocks might go up to, no?

[Mark]

I would take a birds eye view and tealize investing is for the long hau.

Then I would re visit my investment plan and remember why I was investing w this allocation to begin with and keep investing according to my investment plan before I make a costly mistake

[Molly]

Given you don’t say if these stocks are in a reg brokerage account or Roth or IRA/401k, so tax consequences can’t be determined, I’d find new money to start buying VOO and keep the others.

[Nick]

If you currently held $220,000 in VOO would you sell it tomorrow to purchase the same amount of Nvidia?

If the answer is no, you should make the switch because the two choices are equivalent.

Congrats on doubling your money – the best thing you can do is forget this happened and jump into a diversified index, otherwise you will be chasing the high of individual stocks for the rest of your investing life.

p.s. have you thought about whether there will be any tax implications of switching from NVDA to VOO?

[Mario]

Depends if you think that said individual stock is a precursor or it’s going through the motions.

[Kenneth]

I only hold one individual stock now and that’s apple. Held it over a decade.

It’s done well.

[Steve]

If these are held in the after tax brokerage account, then selling them at a somewhat lower amount means you will owe less in capital gains taxes

[Stacey]

I have a ton of individual stocks. My strategy is just going to be to live off of them first in retirement.

[Zach]

I like to keep around 10% of my portfolio in what I call “play money.” Which is mainly individual stocks. Keeps me from moving a lot of money from the core holdings (like VOO or VTI).

Makes the entire thing a lot more interesting & fun without the need to feel like I have to make big sweeping changes to my portfolio.

In short, don’t put too much in a stock or you’re gonna be pulling out your hair if it drops.

[Author]

Posts