gabrewer
Dryer sheet aficionado
First of all, my apologies if this has been covered elsewhere. I did some searching and did not get any hits.
Anyway, I would say this is an asset allocation issue. Many years ago I bought some stock in one of Atlanta's "favorite son" companies -- let's call it HD. As many of you probably know, it's done quite well over the years - both in actual price appreciation and in becoming a pretty reliable dividend payer as well.
So I now find myself in that position of cognitive tension of having to consider selling some of an investment winner so as not to be too exposed to any potential downturn. It's percentage of my total portfolio has been moving up and down around the 10% mark for a couple of years now.
I would be interested in opinions/experiences here as to what is an appropriate percentage to have in any one individual stock. In the broader online environment, I find rules of thumb ranging from 5% to 10%. A work colleague I talked to ask me if it meets the rule "would you buy this stock today if you did not own it?" For me the answer is yes. He seemed to feel that was a reason not to worry about it.
Any and all thoughts appreciated.
Anyway, I would say this is an asset allocation issue. Many years ago I bought some stock in one of Atlanta's "favorite son" companies -- let's call it HD. As many of you probably know, it's done quite well over the years - both in actual price appreciation and in becoming a pretty reliable dividend payer as well.
So I now find myself in that position of cognitive tension of having to consider selling some of an investment winner so as not to be too exposed to any potential downturn. It's percentage of my total portfolio has been moving up and down around the 10% mark for a couple of years now.
I would be interested in opinions/experiences here as to what is an appropriate percentage to have in any one individual stock. In the broader online environment, I find rules of thumb ranging from 5% to 10%. A work colleague I talked to ask me if it meets the rule "would you buy this stock today if you did not own it?" For me the answer is yes. He seemed to feel that was a reason not to worry about it.
Any and all thoughts appreciated.