Wonder what long-time investors will say to my stock portfolio situation.
I’m 46, married, living in VHCOL Silicon Valley. We have about $1.4M together in 401K/IRAs, almost all of it in low-cost Vanguard funds. Also an additional $160K in REITs and ~$210K cash as a rainy day fund. So far so good.
This is about my non-401K investments. Over the last 10 years, but mainly in 2013-2016, I have invested ~290K in a mixture of tech companies. Overall, that portfolio has now grown to 728K, mainly in Microsoft ($190K), Amazon ($105K), Apple ($55K), Google ($51K), and Netflix ($40K). The rest is in other tech stocks (PayPal, Splunk, Salesforce, etc.) In all that time, I sold just one stock — $30K of Tesla that I bought for $14K. (I couldn’t bear the wild and crazy swings Tesla was going through at the time. Would’ve been worth almost $100K today but I can live with that.)
I have thought multiple times over the last few years of balancing the tech portfolio but it kept increasing, and so I didn’t touch it and just let it be. It shrunk down to ~$470K back in March, but I hung on and it has grown well past its previous high water mark.
All of this started before I knew a lot about indexing. I know that I've been lucky. I work in tech in the Bay Area and do know more about tech that the average guy, but not more than the typical analyst. I didn’t look at a single financial statement before investing. I just bought companies that I thought were well-positioned for the cloud and AI shifts underway. When Microsoft or Amazon went up, I bought some more every month, and that process just continued. It wasn't systematic at all and I didn't have a pre-set exit criteria for a single stock. Like I said, I've been lucky. :-)
I stay convinced that the companies in my portfolio are for the long term, but I do think that they are overvalued today. Question is, what would you do in my situation? Taking some profits (minus long term capital gains) and reinvesting someplace else makes sense but would appreciate more of a plan from experienced investors.