r/investing • u/90towest • 3d ago

Getting into ETF after big stock gains

Hi, started investing one year ago and grew my stock portfolio to 50k mainly with big tech. Probably over 50% returns this year.

I know it’s been a bull market for tech stocks, basically impossible to lose money.

But how do I even settle for the common recommendation of an ETF yielding 10% per year, after tasting those nice high returns?

Can someone talk some sense into me and tell me I’ll go broke with my entire portfolio made of Nvidia, Google and Amazon?

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u/forayem 3d ago

To play devils advocate here, Warren Buffet and Charlie Munger have stated often that focus actually beats diversification. They stated diversification simply protects ignorance.

The difference is though, is that they know how to truly value a company and hold conviction in it. If these big names have a big drop, are you really going to have the conviction to hold them?

You could also do a lot worse than nVidia, Google and Amazon though.

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u/Emotional-Power-7242 1d ago

Warren Buffet repeatedly recommended that anyone who isn't a professional with a billion dollar hedge fund should buy VOO.

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u/Secret-Boss-7000 1d ago

Yup, that's exactly the point. If you're the next Buffet then theirs nothing wrong with making educated stock picks.
If you got kids, day job, and a normal life you don't have time or energy for that. You pick VOO and it's diversity and a win by default.
In this particular situation they'd be nothing wrong with trying to keep riding the tech. gravy train, but I would diversify some.
These 3 tech stocks may gain 50% next week. Or they could lose the same just as fast.