For context, I am about 30 years out from retirement and have two main accounts. The hope is for my work managed 401k to overtake and make this self-managed account far less important/a smaller portion of my funds (mostly because I'm bad at managing this and would rather someone else be in charge). At this point the 401k still has some time before it overtakes this account, so I'm still trying to make sure I don't ruin the larger fund.
I'll be honest, I don't know why/when I picked up ANET, but in a random stroke of luck it is up roughly 600%+ and almost literally carrying my retirement. I don't like the idea of selling the golden goose, but at the same time I know if this single stock crashes, so too does my account with it.
Should I sell some of it to lower my risk, or let it ride, knowing eventually the 401k (hopefully) surpasses this account and lowers the risk that way?
A random buy into ANET from years ago is roughly 30% of my account. Should I sell some?
byu/aceswildfire instocks
Posted by aceswildfire
7 Comments
Nothing wrong with selling parts of your winners and rebalancing into other picks or ETFs. But should you sell? That’s up to you.
Retire early and do what you love.
Anet has a lot of room to grow based on the scaling of the ai sector and their current limitations on datacenters. Even with the ai bubble bursting, datacenters are not going away as we look towards cloud computing and more online services. With that said, it’s always smart to diversify. I’d sell perhaps half or a third into more solid etfs in the event there is a larger correction.
It’s down significantly lately and I bought it and it’s dropping further
Dunno 🤷♂️
Sell covered calls on up days. Buy them back on down days.
You could always sell out of the money covered calls. If ANET continues to increase, you’ll be forced to sell at higher prices, and if they come back down, you’ll still own the stock and the money from selling the calls. Since the stock is up about 700% since you bought it, those premiums from selling calls will be a pretty hefty chunk of your original investment.
Having a single stock grow to 30% of your portfolio is a high-class problem, but it definitely increases your idiosyncratic risk. Since you’re 30 years from retirement, you have time on your side, but ‘locking in’ some of those 600% gains by rebalancing into a broader index (like VTI or QQQM) could provide peace of mind without exiting the position entirely. A common strategy is to trim the position back to a target weight (e.g., 10-15%) and let the rest ride. This way, you reduce the impact of a potential crash while still benefiting from ANET’s long-term growth.