What percentage of your total portfolio is your employer's stocks? Currently, almost 67% of my portfolio is AMZN. My current holding looks like the following: Total - 150k AMZN - 100K Investment - 50k (80% ETFs, 20% Crypto) ETFs - 40k : SMH, QQQ, VTI equal split Crypto - 10k : 60% BTC, 40% ETH I am thinking of limiting my exposure to AMZN at constant 100k while diversifying all my upcoming vests in the above-mentioned ratio, 8:2 ETF:CRYPTO. TC: 400k (Roughly 200k vests in 2024) SDE | L5
Superficially, around 20% in company stocks. Realistically, like 50% or more considering that the other investments I have (ETFs, 401k, etc.) have MSFT at the top of their holdings at approximately 8% to 11%. That is with vested RSU. If I count unvested RSU too, my exposure to Microsoft’s performance is closer to 50%-70% but I try to diversity a bit as they vest.
VT
Your QQQ has another 15% of AMZN and overall the correlation of your assets is likely > .9 Diversification is actually invest in things that will behave differently when your main asset would go down. Think of it this way, if AMZN is hit by hard regulations, they have an accounting problem that no one saw or just if the economy tanks and drags overvalued tech, you may lose your job at the same time that your portfolio tanks… Try exploring international markets, gold miners, oil producers and short term treasuries to reduce your assets correlation
I own $1,800 of META, and my non-retirement portfolio is $449,000 so it is 0.4% of my portfolio. (though I have about $200k of S&P 500 which has a lot of META in it so it's still a good chunk of my portfolio) I also have $2.1M of unvested META so I don't really need to hold any more at this point…
Go international with your 401k. Add energy but it’s volatile.
Damn you OP, I've read this as "diversity RSUs" and started to worry about my upcoming comp letter.
Works great until it doesn't!
Diversify with international equity
Which ETF would you recommend?
Look up how Betterment does it I think VEA and a bit of VWO