I’ve made ~4x on SOFI, 3x on GOOG, and 2x on AMZN. I also hold VTI (up ~1x). I don’t need this money anytime soon and I’m fine paying long-term capital gains tax. Does it make sense to sell a portion of these winners and move more into VTI for long-term diversification, or just hold as-is?
Sitting on 2x–4x gains in SOFI/GOOG/AMZN, should I rebalance to VTI?
byu/ramkris1988 ininvesting
Posted by ramkris1988
13 Comments
If you had all the money in cash right now, what would you want your investment strategy to be?
Unless you’re like, about to retire tomorrow, why?
u gonna lose an entire year by paying long-term capital gains tax
No
Let your winners ride
I would argue no just because you lose on capital gains, and VTI is not massively different from Google + Amazon.
There is no risk of Google and Amazon going under or even under performing the rest of VTI, so while VTI is “safer” it’s like going from 99.999% safe to 99.99999%.
Sell only when you have an urgent expense to pay for. Otherwise you are panic selling and calling it something else.
Add new monies with the diversification you seek.
The only thing to regret on your 3x’s is that you didn’t add more (you left money on the table). This is the dangers of good things happening from stock picking. You fall in love with the basis and never buy again. Learn the lesson.
If you want to be more safe, yes. If you want to be more risky, no.
Keep in mind, none of these people are in your shoes. They don’t see the results that you do directly.
When stocks are ripping past all time highs, there’s many reasons.
1. Extremely profitable and growing
2. Political benefits
3. Economic certainties
4. Inflation
If you don’t see this as continuous, sell
If you’re okay with paying the capital gains taxes.
Also, if i decide to sell then I would sell a third of stocks and not the entire position.
If you own enough shares you could consider selling covered calls on these at a decently aggressive pace then rebalancing the cash as the contracts get executed
trim googl and amzn if you want but don’t sell. Those are long term holds. Sofi sure. I would just take some profits and roll them over to something more stable. Doesn’t necessarily have to be an ETF. Take casy for example. Rural gas stations that sells pizza. Has basically beat voo.