The best problem in investing: your winner got too big.
Now it's 40% of your portfolio. You're thrilled. You're also terrified.
This is where most people freeze — torn between greed (it could keep going!) and fear (what if it crashes?).
Here's the boring truth: if you wouldn't buy more at today's price, you probably own too much.
You don't have to sell it all. But trimming back to a sane allocation (10-20%) locks in gains, reduces sleepless nights, and lets you diversify into things that aren't riding on one company's next earnings call.
Concentration builds wealth. Diversification protects it.
Know which phase you're in.
Now it's 40% of your portfolio. You're thrilled. You're also terrified.
This is where most people freeze — torn between greed (it could keep going!) and fear (what if it crashes?).
Here's the boring truth: if you wouldn't buy more at today's price, you probably own too much.
You don't have to sell it all. But trimming back to a sane allocation (10-20%) locks in gains, reduces sleepless nights, and lets you diversify into things that aren't riding on one company's next earnings call.
Concentration builds wealth. Diversification protects it.
Know which phase you're in.