User question: Now I find my balance shows 20.65% in TTD and 17.8% in MBD. Would you sell to get them at or below 15%?
Victor Nunnemaker:
Tough problem to have, eh?!😜. I personally like to keep the positions at or less than 15%, as a general rule, but you also have to consider your other assets and holdings. For example, if you have a stock portfolio of only $10k or even $50k or $100m in these stocks, but have a $1m home, 4 rentals worth $1m and a $1m 401k, then having 20% or more in a great stock like MDB would absolutely not even phase me, and in fact if your other investment are relatively conservative, MDB and TTD might be the perfect balance. It’s all relative. $100k in growth stocks with the above $3m in real estate and other 401k is only 3.3% of your entire holdings…not likely something you truly need to di-worsify or further thin out as even if you lost it all, it would not impact you. Side note: You also want to consider if it is a taxable account or if you might incur significant tax penalties by selling a stocks with significant gains… hope that helps. Cheers!
