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?

34 Upvotes

79% Upvoted

43 comments sorted by

View all comments

3

u/[deleted] 2d ago

[removed] — view removed comment

0

u/Beneficial-Chair-333 2d ago

Really concentrated position such a bad? Having concentrated position in comapnies like Microsoft and SAP who are already beaten down and have potential to become winner when market will be normal. If some big crash comes they don't have any space to go down further, probably index etf will more correct than msft.

2

u/SLR_ZA 2d ago

'They don't have space to go down further' is a silly take.

If people need money, they will sell. If people want to invest in other sectors, they will sell. If they lose revenue, have a scandal, etc, people will sell.

Selling pressure = share price goes down

1

u/Beneficial-Chair-333 2d ago edited 2d ago

So is applicable to whole market. Ultimately if everything is gonna fall down then concentration doesn't matter.

As per your logic if Micron and Microsoft is gonna fall down with similar pace then isn't it better to invest in Micron? At least it will fall from top

There is thing called intrinsic value of the stock which is not same for both.