So, I've got an investment portfolio that includes index funds, some managed funds (in 401k), an international account handled by a money manager, but also a portfolio of about 30 stocks and 2 bonds that I manage myself.
I started putting together this stock portfolio about 12 years ago and I have taken a buy and hold approach, adding to positions during downturns, but have rarely (I think twice in that timeframe) sold anything. This approach has served me well and as I have mentioned on this site before, I have consistently beaten the indexes. However, recently, due to the performance of a few stocks (mainly NVDA and FB where my gains are 1300% and 350% respectively) my portfolio has gotten quite a bit unbalanced. For instance, technology has grown to a whopping 39% of this stock portfolio. And these 2 stock alone make up nearly 9% of my total investable NW (107K out of about 1.2mln).
What I am struggling with is that if I take some of those profits off the table I don't have any good ideas for reinvestment. Also, none of my other positions are really at a point where I'd like to add to them. I could go to cash, but I already have a 6 figure balance there that I've been looking to do something with. You might have seen another thread from me where I was asking what to do with this cash (pay down mortgage, etc.). Or, I could just let them ride and be ok with the new normal allocation in my portfolio.
Anyway, with the market over the last few years, I'm sure others on hear have found themselves getting out of balance in one area or another, so I thought I'd solicit a little advice. Any is welcomed and appreciated.
I started putting together this stock portfolio about 12 years ago and I have taken a buy and hold approach, adding to positions during downturns, but have rarely (I think twice in that timeframe) sold anything. This approach has served me well and as I have mentioned on this site before, I have consistently beaten the indexes. However, recently, due to the performance of a few stocks (mainly NVDA and FB where my gains are 1300% and 350% respectively) my portfolio has gotten quite a bit unbalanced. For instance, technology has grown to a whopping 39% of this stock portfolio. And these 2 stock alone make up nearly 9% of my total investable NW (107K out of about 1.2mln).
What I am struggling with is that if I take some of those profits off the table I don't have any good ideas for reinvestment. Also, none of my other positions are really at a point where I'd like to add to them. I could go to cash, but I already have a 6 figure balance there that I've been looking to do something with. You might have seen another thread from me where I was asking what to do with this cash (pay down mortgage, etc.). Or, I could just let them ride and be ok with the new normal allocation in my portfolio.
Anyway, with the market over the last few years, I'm sure others on hear have found themselves getting out of balance in one area or another, so I thought I'd solicit a little advice. Any is welcomed and appreciated.