Author Topic: All my Eggs in one basket (AAPL)  (Read 19731 times)

ctuser1

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Re: All my Eggs in one basket (AAPL)
« Reply #50 on: August 20, 2019, 01:29:30 PM »
Sell a call option and buy a put option, around 10% out or more. There's some risk and you protect your current gains. Start unloading the position slowly.

You won’t save much on the 15% capital gains tax, of at all, trying this with the current LEAP options available from CBOT. Option premiums and time decay will make sure of that.

Most institutional investors use total return swaps for these types of tax avoidance schemes. I don’t know how a retail investor will access that. That stuff is only for ultra high net worth people ($30mm+) where an actual investment banker will work on it.

@ctuser1 if the OP sells a call and buys a put, time decay will increase their wealth as the call declines and decrease their wealth as the put declines. Depending upon exactly which calls and puts the OP trades, they could set up a time-neutral position where the decay of the call offsets the decay of the put. E.g if they sell $10k worth of calls that are worth $2k in a couple years, and buy $10k of puts that are worth $2k in a couple years, their initial outlay and their outcome would both be zero.

This feature makes the “collar” option strategy a very inexpensive way to protect gains or reduce portfolio volatility. Using LEAPS one can lock in protection for a couple years at a time.

That said, the OP might be forced to sell near the time of the options’ maturity if AAPL rallies beyond the short call’s strike price. In such a scenario, the OP could also trade both their options for higher strike prices, thus still avoid having to sell their stock.

That’s a nice strategy. Thanks.

KSP

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Re: All my Eggs in one basket (AAPL)
« Reply #51 on: August 20, 2019, 04:38:23 PM »
I have a very similar situation, I'm glad you started this thread. I invested 15k in Apple with an inheritance (at my dad's suggestion) back in the mid 90's. I've sold some along the way to put a down payment on a house, get through a couple tough spots, but I now have about $320k stock in a taxable account with a cost basis of $1.65. I'm in my mid thirties. I'm new to the whole investing FI thing, and when I set up my Vanguard account and had my free phone call I asked the financial advisor about it- he told me I would have to "rip the band-aid" at some point, but I've been wary to do that. We make about 150k per year and save half of it (it's my first year with a "real" job, I stayed home with kid for 2 years and then worked part time). I'm inclined to keep the Apple stock and throw all our new savings into index funds. We have about 80k in retirement funds and 250k equity in our house.

As a side note though I set up a Vanguard account in December and maxed it out, but instead of putting it in an index fund I put it in Apple on Dec 4th, which had dropped to 174. I sold it in July 30 for a 17.7% gain and put it VTSAX at this last little drop. If I had bought/sold VTSAX on those dates it would only have been an 11% gain....

Looking forward to reading the replies on this thread, it looks like a lot of good advice was given on how to diversify.

bwall

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Re: All my Eggs in one basket (AAPL)
« Reply #52 on: August 21, 2019, 10:54:49 AM »
mominca: Congratulations! That is amazing! Apple at a cost basis of $1.65 and it's now trading at $211 (or so). You get almost twice your cost basis annually in dividends. The power of the US stock market to generate wealth is like no other.

If you hadn't sold a share, it'd be worth $1.9m today. However, life is as it is and you still have to pay your bills no matter what. When emergencies arise, then it's nice to have alternatives. And, of course, there is no way to have known back then where the stock would be today--maybe it'd have been like Enron, GM or all the others that went belly up and you would've been very wise to cash out. All in all, it's a great story--part of your life!

Since it sounds like you're in good shape financially and don't need the money now or anytime soon, I'd encourage you to think long term. Very long term, in fact. You could set some of the stock aside for your child(ren) when they turn..... 30? 35? Not too young or else they may be too young to appreciate the value of money and squander it on poor decisions. Or maybe set up a trust (?) for your grandkids, for when they turn 30 or 35. It seems like ages away and it is. But you have the potential to secure the next generation(s) place in the middle class. Why not take it? YMMV.



frugalnacho

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Re: All my Eggs in one basket (AAPL)
« Reply #53 on: August 22, 2019, 09:38:06 AM »
You are taking on incredible, breath-taking, uncompensated risk. You got lucky.

Uncompensated? Really? He's up 7x his original investment in 10 years. That sounds like great compensation to me. If I were in his shoes my only regret would be not investing more, or else not investing the same amount another 10 years prior.

If you'd invested in the Dow at it's all time low this century, March 3, 2009, (6500 points), then the Dow would have to be well over 40,000 points to match his returns (now its around 25,000 to 26,000). So, not only has he been very well compensated for his risk, he's beaten the market!
We agree that he got lucky. I mean the textbook definition of uncompensated risk when it comes to investing.
https://en.m.wikipedia.org/wiki/Uncompensated_risk


“, if you owned only an individual stock or only a single market sector you would have significant uncompensated risk. By investing in one stock or one single market sector, you are not compensated for that extra risk (since that risk can be diversified away by owning the Total Stock Market). You should expect to get the same return as the market, but you have a lot more risk in your portfolio.

The efficient market hypothesis states that you are not rewarded for taking uncompensated risk.”


Investing in stocks versus bonds is taking more risk and therefore we expect (and with a broad index fund receive) higher return for that risk. With a single stock you are taking on magnitudes more risk without an average expected return that is greater than a broad stock market index. The standard deviation is much higher. You could get very lucky as this OP has been and you could also have your entire investment be wiped out, as has happened with examples already mentioned in this thread.

Thanks for the thoughtful reply and link. In the link you provided, uncompensated risk is defined as:
"Uncompensated risk is the level of additional risk for which no additional returns are generated and when taking systematic withdrawals make the probability of failure unacceptably high."

If we run the numbers, we see that AAPL beat the market and thus did provide additional returns. I don't believe that the systematic withdrawals clause applies either, but dunno, maybe it does. So as I see it, his investment example does not meet the threshold of compensated risk since additional returns were indeed generated.

Maybe the term is an academic one that by definition applies to any concentrated position. Dunno. But, it still seems like the OP has done very well for himself and now has a very high quality problem to solve.

That's backwards though. You are defining the risk retroactively based on the outcome.  AAPL was not projected to perform as well as it did, otherwise that would have been built right into the price from the start.  Everyone buying individual stocks is assuming more risk than anyone just indexing.  Some will perform better than the index, some will perform worse, but overall they will in aggregate perform the same as the market (by definition), but with higher volatility and risk.  By buying an individual stock you are taking on more risk, but you are not receiving more compensation on average. 

A Fella from Stella

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Re: All my Eggs in one basket (AAPL)
« Reply #54 on: August 22, 2019, 12:34:59 PM »
Apple was started by a child-abandoning, cancer-incubating weirdo who had only 1 outfit. Forget what you heard on the TED talks; it's not okay to have just 1 outfit, and it's probably what gave him the sickness that killed him from the inside out.

Sell most of your Apple stock and pay your 15% gains taxes. If you think the market is going to tank, hang on to the remaining $500k because stuff's about to go on sale. If you want some interest on the money, put it into 1 year CDs at 2 different banks so you're insured against a banking collapse.

KSP

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Re: All my Eggs in one basket (AAPL)
« Reply #55 on: August 22, 2019, 03:50:26 PM »
You could set some of the stock aside for your child(ren) when they turn..... 30? 35? Not too young or else they may be too young to appreciate the value of money and squander it on poor decisions. Or maybe set up a trust (?) for your grandkids, for when they turn 30 or 35. It seems like ages away and it is. But you have the potential to secure the next generation(s) place in the middle class. Why not take it? YMMV.

That's a great idea! All the stock was in my Dad's name, so when it came time to transfer it he and my step mom had to "gift" it over a few years to my husband and I to avoid taxes. I could start transferring some into a trust to my kid (singular) each year. Having it in my dad's name definitely helped me restrain from selling more though... I had to answer to his longwinded response of how I shouldn't be selling it if I wanted to sell any portion. I did sell some in my early 20's to buy a $2000 dollar cyclocross bike, not a proud moment. My sister had the same investment and sold it at less than the original investment a few years after it was invested.

nereo

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Re: All my Eggs in one basket (AAPL)
« Reply #56 on: August 22, 2019, 07:13:39 PM »
Apple was started by a child-abandoning, cancer-incubating weirdo who had only 1 outfit. Forget what you heard on the TED talks; it's not okay to have just 1 outfit, and it's probably what gave him the sickness that killed him from the inside out.

Sorry, but no.  A person's fashion sense does not cause pancreatic cancer. 
Yes, Jobs was a very odd duck, and often not a very nice person, but many (most?) founders of large companies are not 'normal' people. Edison, Musk, Woz, Gates, Disney... all highly abnormal human beings

A Fella from Stella

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Re: All my Eggs in one basket (AAPL)
« Reply #57 on: August 23, 2019, 06:01:58 AM »
Apple was started by a child-abandoning, cancer-incubating weirdo who had only 1 outfit. Forget what you heard on the TED talks; it's not okay to have just 1 outfit, and it's probably what gave him the sickness that killed him from the inside out.

Sorry, but no.  A person's fashion sense does not cause pancreatic cancer. 
Yes, Jobs was a very odd duck, and often not a very nice person, but many (most?) founders of large companies are not 'normal' people. Edison, Musk, Woz, Gates, Disney... all highly abnormal human beings

The sickness I refer to was not pancreatic cancer, which is terrible, and I wouldn't wish on anyone, including someone who would name a computer "Lisa," and then claim that Lisa was not his daughter, and take no responsibility for being her father.

Blueberries

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Re: All my Eggs in one basket (AAPL)
« Reply #58 on: August 26, 2019, 08:39:06 AM »
Apple was started by a child-abandoning, cancer-incubating weirdo who had only 1 outfit. Forget what you heard on the TED talks; it's not okay to have just 1 outfit, and it's probably what gave him the sickness that killed him from the inside out.

Sell most of your Apple stock and pay your 15% gains taxes. If you think the market is going to tank, hang on to the remaining $500k because stuff's about to go on sale. If you want some interest on the money, put it into 1 year CDs at 2 different banks so you're insured against a banking collapse.

What a very strange and hate-filled comment.  He wore a uniform, he didn't have one outfit.  There is a psychologically sound reason people do this and he wasn't unique in that.

ChpBstrd

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Re: All my Eggs in one basket (AAPL)
« Reply #59 on: August 26, 2019, 10:11:48 AM »
A better critique of Jobs is that while he was smart enough to found Apple, rescue Apple, and design the iPhone, he was also dumb enough to fall for the fabulous claims of the “alternative medicine” practitioners who ultimately killed him (pocketing who knows how much money).

Ask any modern psychologist- intelligence is very domain-specific. It was said Bill Clinton could shake the hands of a hundred strangers and remember all their names the next day. Yet his genius level social intelligence did not make up for a lack of self-discipline - which I would call another type of intelligence.

Perhaps any “genius” is a person whose talent has been concentrated in an extremely narrow scope of capability, and who is thus vulnerable to many weaknesses. Because the rise of geniuses will expose them to more opportunities to fail, it is inevitable that geniuses will regularly rise and fall.

This is also a metaphor about companies and their investors. Jobs should have outsourced his medical decision-making to cover his weakness for untested ideas. Clinton should have made his advisors impose discipline on him or perhaps hired a Stoic counselor/coach, to cover his weakness around self discipline. Individual investors should stick to indices to cover for their biases around information availability, selection and survivorship, or our expectations that the future will resemble the past. Expect individual companies to regularly fail when their weaknesses are tested.

seeyalater

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Re: All my Eggs in one basket (AAPL)
« Reply #60 on: November 13, 2019, 11:24:24 AM »
3-Month Update:

So that $600K of AAPL a few months ago is now worth $793K. I'm glad I just left it alone!

I did, however, put some new money into VTSAX and will be putting the AAPL dividends into it going forward.
« Last Edit: November 13, 2019, 11:26:33 AM by seeyalater »

ysette9

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Re: All my Eggs in one basket (AAPL)
« Reply #61 on: November 13, 2019, 12:52:24 PM »
It is like watching someone rock climb without a harness or safety rope. Congrats on going higher but damn, I am so nervous for your risky situation!

lemonlyman

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Re: All my Eggs in one basket (AAPL)
« Reply #62 on: November 13, 2019, 01:20:37 PM »
3-Month Update:

So that $600K of AAPL a few months ago is now worth $793K. I'm glad I just left it alone!

I did, however, put some new money into VTSAX and will be putting the AAPL dividends into it going forward.

Owning shares in a good company is not a bad idea. You did research and identified it as such. Awesome! Most here will point you towards index funds which is a mantra in the community. If you can justify continued growth with your research, have confidence in yourself. If you can't justify your investment with a forward look at the financials, perhaps consider changing your investment strategy.

nereo

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Re: All my Eggs in one basket (AAPL)
« Reply #63 on: November 13, 2019, 01:28:11 PM »
Do not confuse luck with skill.

tedman

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Re: All my Eggs in one basket (AAPL)
« Reply #64 on: November 13, 2019, 01:59:04 PM »
When I was 17 I inherited 20k from a deceased relative. My parents who were bankers and who I later found out have been in index funds for decades, let me do research and pick stocks after pitching it to them. I put 3500 into five companies and the balance in a municipal bond.

The five companies were :

Gateway
Dell
Yahoo
Amazon
Northpoint (where I got DSL from after the local telecoms not doing anything).

So am I an idiot? Or a genius? I’m up as of now on that investment, but only very recently and only due to Amazon, every single other stock purchase was awful. Furthermore the only reason I never ended up selling the Amazon stock was because it didn’t matter to me at all. Another site I wanted to invest in was IVillage, because I saw it ALL the time on AOL.

Apple wasn’t even on my radar, “the iPod sucks” I remember thinking later when I was looking for more “investments”.

My mom on some level hates the story because she expected me to lose money gradually compared to the market but nothing like what ended up happening where 3/5 ended up worthless and 1/5 went nowhere and stayed there and 1/5 went nowhere and then all of a sudden went to the moon.

If the money wasn’t “play” money on some level it would have ended in disaster long ago... much like apple owners who got out in 2000 or there abouts. 

Over the last 10 years I’ve been selling 5% a year and moving the money into vtsax. I have been insanely lucky, and not due to nearly ANYTHING in my original proposal to my parents, “the best book store” and my safe stocks “the two best personal computing companies!”. I even proposed selling 25% a year (the account is still a joint account from when I got the money) and to avoid a tax hit we settled 5%.

I don’t consider myself a moron, but it is plainly obvious to me that anything other than some type of hedged position in a stock market is a fools game.

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #65 on: November 13, 2019, 03:00:55 PM »
3-Month Update:

So that $600K of AAPL a few months ago is now worth $793K. I'm glad I just left it alone!

I did, however, put some new money into VTSAX and will be putting the AAPL dividends into it going forward.

Why would you be happy about that? What you should have done was move it all to TSLA and it would be worth $912k now. You just missed out on $119k!

Seriously though, all of the good advice given in this thread is still good advice. Having a majority of your net worth in a single stock is insane. Just because you won the bet doesn't mean the odds were in your favor and it certainly doesn't mean they're in your favor moving forward.

alienbogey

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Re: All my Eggs in one basket (AAPL)
« Reply #66 on: November 14, 2019, 09:00:22 AM »
3-Month Update:

So that $600K of AAPL a few months ago is now worth $793K. I'm glad I just left it alone!

I did, however, put some new money into VTSAX and will be putting the AAPL dividends into it going forward.

Owning shares in a good company is not a bad idea. You did research and identified it as such. Awesome! Most here will point you towards index funds which is a mantra in the community. If you can justify continued growth with your research, have confidence in yourself. If you can't justify your investment with a forward look at the financials, perhaps consider changing your investment strategy.

^^ This

BicycleB

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Re: All my Eggs in one basket (AAPL)
« Reply #67 on: November 20, 2019, 11:17:52 AM »
All my eggs are in the refridgerator.

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #68 on: November 20, 2019, 11:31:16 AM »
All my eggs are in the refridgerator.

Silly Americans, if you didn't wash them you could keep them on the counter :)

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #69 on: November 20, 2019, 12:03:37 PM »
Good news OP, you can safely continue to ignore all the advice in this thread.

https://9to5mac.com/2019/11/20/aapl-stock-will-rise/

"Three factors mean AAPL stock will rise 11% in next 12 months"

Apple top is not in...

Villanelle

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Re: All my Eggs in one basket (AAPL)
« Reply #70 on: November 20, 2019, 12:14:40 PM »
Congratulations! You won the lottery.

That does not mean that the best strategy going forward is to continue to buy lottery tickets.  But it doesn't really sound like you are open to advice.  You are a gambler who just won big at the craps table, high on the adrenaline of success and a big pay out, unable to walk away. 

dragoncar

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Re: All my Eggs in one basket (AAPL)
« Reply #71 on: November 20, 2019, 03:37:48 PM »
All my eggs are in the refridgerator.

Silly Americans, if you didn't wash them you could keep them on the counter :)

For optimal diversification keep some in the fridge and some on the counter

ChpBstrd

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Re: All my Eggs in one basket (AAPL)
« Reply #72 on: November 21, 2019, 08:24:25 AM »
All my eggs are in the refridgerator.

Silly Americans, if you didn't wash them you could keep them on the counter :)

For optimal diversification keep some in the fridge and some on the counter

And really you should consider the role of eggs in your overall GA (grocery allocation). Their short duration is best offset by something like dried beans, which can improve the sustainability of your food portfolio if you experience an extended Sequence of Grocery Runs event.

nereo

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Re: All my Eggs in one basket (AAPL)
« Reply #73 on: November 21, 2019, 08:44:56 AM »
I’ve put all my eggs into actual eggs.  I’m banking on a bird-flu pandemic which will force US egg-layers to euthanize their flock, spiking the price.  If it pans out I’ll be FI around Christmas.  If not... lots of eggnog.

frugalnacho

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Re: All my Eggs in one basket (AAPL)
« Reply #74 on: November 21, 2019, 09:04:40 AM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #75 on: November 21, 2019, 09:12:30 AM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

Godspeed

Villanelle

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Re: All my Eggs in one basket (AAPL)
« Reply #76 on: November 21, 2019, 11:40:20 AM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in. 

dragoncar

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Re: All my Eggs in one basket (AAPL)
« Reply #77 on: November 21, 2019, 11:54:53 AM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #78 on: November 21, 2019, 12:33:52 PM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

This thread has been infected, but it's not bird flu...

GuitarStv

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Re: All my Eggs in one basket (AAPL)
« Reply #79 on: November 21, 2019, 12:45:09 PM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

Guys, I just made a mint investing in buttcoin.  Have you heard of blockchain??????  EVERYONE GETS RICH, EVERY TIME!

ChpBstrd

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Re: All my Eggs in one basket (AAPL)
« Reply #80 on: November 21, 2019, 12:48:38 PM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

Guys, I just made a mint investing in buttcoin.  Have you heard of blockchain??????  EVERYONE GETS RICH, EVERY TIME!

The “simpler” path to wealth:

https://www.marketwatch.com/story/millennial-consultant-sees-extremely-risky-investment-deliver-a-13-million-return-but-hes-still-not-quite-ready-to-sell-2019-11-20?mod=home-page

bacchi

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Re: All my Eggs in one basket (AAPL)
« Reply #81 on: November 21, 2019, 12:54:01 PM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

Guys, I just made a mint investing in buttcoin.  Have you heard of blockchain??????  EVERYONE GETS RICH, EVERY TIME!

The “simpler” path to wealth:

https://www.marketwatch.com/story/millennial-consultant-sees-extremely-risky-investment-deliver-a-13-million-return-but-hes-still-not-quite-ready-to-sell-2019-11-20?mod=home-page

He'll lose it all.

Davnasty

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Re: All my Eggs in one basket (AAPL)
« Reply #82 on: November 21, 2019, 12:56:53 PM »
I've put my entire asset allocation into turkeys.  It's been going up the whole month of November, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in!

January?  No.  Sell now.

Flock is in.

Pumpkin spice is back, wet bulb temperature (WBT) below 15, cranberry supply chain breaking down. Mashed potatoes to follow, weigh-in will be a reality check.

Guys, I just made a mint investing in buttcoin.  Have you heard of blockchain??????  EVERYONE GETS RICH, EVERY TIME!

The “simpler” path to wealth:

https://www.marketwatch.com/story/millennial-consultant-sees-extremely-risky-investment-deliver-a-13-million-return-but-hes-still-not-quite-ready-to-sell-2019-11-20?mod=home-page

He'll lose it all.

Aaaand it's gone.

Laura Ingalls

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Re: All my Eggs in one basket (AAPL)
« Reply #83 on: November 25, 2019, 07:22:29 AM »
Could you just sell two shares each pay period and use those to fund a 401k contribution and basically trade w-2 income for long term capital gains?

You back out of the position slowly and become more tax efficient than you are presently.  DH and I had a similar situation at one point it was probably about 35% of total net worth.  It’s pared down to about 4% presently.  I suspect that you will sleep better if you shrink your position.


Niceday

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Re: All my Eggs in one basket (AAPL)
« Reply #84 on: January 19, 2020, 05:42:03 PM »
Amazing, OP!  Congrats.  Wondering if you have done anything to your AAPL shares.  Are you going to wait and see the upcoming earnings report?

TheAnonOne

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Re: All my Eggs in one basket (AAPL)
« Reply #85 on: January 20, 2020, 01:27:05 PM »
From Nov 13th to now, AAPL is up another ~20% (Though the market as a whole is up A LOT as well, so the delta might not be that much) putting him around 950k.

Not too shabby for dumb luck!

seeyalater

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Re: All my Eggs in one basket (AAPL)
« Reply #86 on: January 21, 2020, 07:53:09 AM »
@TheAnonOne, $945K to be exact.

This is what I've done so far. I sold $100K in December and put it into VTSAX. I sold another $100K a couple of weeks ago and bought MSFT at $163.00. So I'll pay $15K of long term capital gains in my 2019 income taxes and another $15K for 2020.

I'll keep monitoring AAPL for now and sell some more if I see things changing, but I think both AAPL and MSFT will do well in 2020.

talltexan

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Re: All my Eggs in one basket (AAPL)
« Reply #87 on: January 21, 2020, 08:13:43 AM »
What about using some put options to limit your downside?

nereo

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Re: All my Eggs in one basket (AAPL)
« Reply #88 on: January 21, 2020, 09:45:48 AM »

I'll keep monitoring AAPL for now and sell some more if I see things changing, but I think both AAPL and MSFT will do well in 2020.

Posting for posterity.

seeyalater

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Re: All my Eggs in one basket (AAPL)
« Reply #89 on: June 09, 2020, 02:06:38 PM »
I'm a millionaire!!

Today my portfolio hit $1M for the first time. Here are my positions:

77% AAPL
12% VTSAX
6% MSFT

I also bought some TSLA around $690 at the beginning of the COVID thing and sold around $800 a few weeks later. I should have bought some BA stock, but oh well.

Definitely not bad considering I was around $600K last August.

BicycleB

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Re: All my Eggs in one basket (AAPL)
« Reply #90 on: June 09, 2020, 02:14:44 PM »
Despite your screen name, you came back!  :)

Joking aside, congrats.

talltexan

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Re: All my Eggs in one basket (AAPL)
« Reply #91 on: June 09, 2020, 02:45:34 PM »
I would never encourage someone who was starting to invest to have more than 80% of their NW in individual stock positions.

But I think the $MSFT is really smart, as they're clearly a beneficiary of the virtual meeting culture that is suddenly so common.

nereo

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Re: All my Eggs in one basket (AAPL)
« Reply #92 on: June 09, 2020, 02:47:57 PM »
I’m anxious just thinking about it. 

Retire-Canada

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Re: All my Eggs in one basket (AAPL)
« Reply #93 on: June 09, 2020, 07:44:53 PM »
I'm a millionaire!!

Today my portfolio hit $1M for the first time. Here are my positions:

77% AAPL
12% VTSAX
6% MSFT

Congrats on hitting $1M.

I worked with a guy who hit $1M in an individual tech stock before Y2K so like ~$1.5M in today's dollars. He was stoked and called his wife from Europe where he was on an assignment to tell her they were retiring when her got back. Stock crashed wiping him out and he is planning on retiring in 2022 after rebuilding his financial life and huge heartache. BTW - he'll be 70 when he retires. :-(

Being lucky is great, but being smart and lucky is better. FFS diversify some of that Apple stock even if you keep a significant chunk of it. The company my co-worker was invested in seemed rock solid until it suddenly wasn't.
« Last Edit: June 09, 2020, 07:48:29 PM by Retire-Canada »

MustacheAndaHalf

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Re: All my Eggs in one basket (AAPL)
« Reply #94 on: June 09, 2020, 11:07:35 PM »
I'm a millionaire!!
Today my portfolio hit $1M for the first time. Here are my positions:
77% AAPL
12% VTSAX
6% MSFT
Definitely not bad considering I was around $600K last August.
AAPL went up +82% in 12 months (it was up +90% days ago).  I don't get why Apple did the best among the top 5 tech companies (as a group, up +50% in 12 months).

Mighty-Dollar

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Re: All my Eggs in one basket (AAPL)
« Reply #95 on: June 17, 2020, 12:46:23 PM »
I'm a millionaire!!

Today my portfolio hit $1M for the first time. Here are my positions:
77% AAPL
12% VTSAX
6% MSFT
And AAPL has done about 15% better than the S&P since the peak of the market on 2/13/2020.
I would still aim to pull money out of AAPL in a tax efficient manner. Try splitting sales up into several tax years to reduce your tax bracket. You're taking on a lot of risk. And no bonds???? You are swinging for the fences.
https://finance.zacks.com/risk-single-stock-portfolio-5299.html

talltexan

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Re: All my Eggs in one basket (AAPL)
« Reply #96 on: June 18, 2020, 06:25:45 AM »
Again, it's not that Apple is a bad company, so much as it is that the volatility associated with an individual stock position means you are bearing much more risk than is necessary to achieve your financial goals.

Cadman

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Re: All my Eggs in one basket (AAPL)
« Reply #97 on: August 01, 2020, 09:37:20 AM »
Seeing that AAPL closed at $425/share yesterday (and announced a 4/1 split) reminded me of this thread.

OP, what did you eventually decide on doing?

talltexan

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Re: All my Eggs in one basket (AAPL)
« Reply #98 on: August 01, 2020, 09:43:37 AM »
Turning out to be a damn fine basket

KBecks

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Re: All my Eggs in one basket (AAPL)
« Reply #99 on: August 02, 2020, 06:48:04 AM »
Congrats to all the AAPL longs.  It has clawed its way up to the #1 slot in our portfolio, and that is vs. some very strong companies as competition.