I have around 35% of my networth in AMZN (~250K in AMZN). I am in dilemma whether to keep it or sell some of it and diversify (Buy other growth stocks like MSFT, FB, GOOG etc). Just wanted to get input on how others diversify the money. Is 35% money in single stock risky? My remaining money is diversified in other stocks(~100k), real estate(350k), emergency funds and 401K
I'm in the exact same situation. All my initial stocks were vested and I haven't sold a single stock yet, which turned ~220K worth. I also own a property worth ~500k, which I actually never considered an investment because I live here and don't own any other property. So, this means my portfolio is 100% on my AMZN stocks. I know a lot of people say diversify them.. but I've kept them because I didn't see any good reason to sell and thought it is the safest stock in the market (totally my opinion and belief). The stock has been performing really well so far, but now I'm more skeptical about the market itself in this time of crisis. However, I decided to hold because I'm considered myself a long term investor at this point. I'm talking about holding them for 5-10 years more. In fact, I need to diversify... but I just don't know well about other stocks since I've been only studying and following AMZN so far and I don't like to invest in something that I don't know enough. I'm following this thread to see what's people's advise!!
Risky as hell.
Definitely risky but whether you stay in it depends on your risk tolerance
High risk, high reward.. no one will be rich by investing in s&p, but they won’t be poor either. On the other hand, look at Msft employees who kept their stock from 80s or early 90s.. all of them are millionaires! But we have many people who also lost everything (like Yahoo employees). Personally, I would put half of that 35% into something less risky (like s&p500)
I had the same problem 2 years ago. Then I started selling half of what vested.
Never sell amazon, I have 200k in it and I don't even work there
Sell until you can sleep at night
+1 if it’s actually impacting your personal life/health, then sell.
More than 20% net worth in 1 stock is extremely risky!!
More like 10%
Remember you have unvested Amazon stock. That's enough exposure, sell the vested and buy index and other blue chip stocks
Definitely risky since your job is also at Amazon. Look into index funds, move everything to a 3-fund (local, intl stock, bonds) setup that matches your needs.