Buy ? Hold ? Sell ?
- Thread starter vaquerizo
- Start date
I bought alot of NVDA the last 2 years and that stock has made my 401K double in about 7 months
That makes more sense. I rolled over an old 401k into an IRA so I could invest in more than just a limited batch of mutual funds. I got killed on some "hot tips" and weed stocks, but overall, it's been kicking ass.
exact same. did it in august 2022. mostly into NVDA, ASML, & AVGO. Been a really nice 2 years. i made a little more in that account than i would have if i was still working.
the other side of that coin... gonna be real fun riding the inevitable downturn, now that i'm living off investments & savings.
Are you able to stockpile enough in cash, treasuries, and/or bonds to weather the inevitable storm? If not, sequence of return risk could bite you.
Related topic, assuming you have a lot in tax advantaged accounts, have/did you do Roth conversions? I'm in prep mode (stockpiling after tax money/investments) and a big part of the plan will be to do Roth conversions in the first few years of retirement.
My IRA has doubled since Dec/January because of NVDA. Im seriously all in on NVDA in my IRA 100% of NVDA. Also have some in a personal account with Apple and Eli Lilly
yeah, well, that touches upon both the good and bad of what i did. only time will tell if it ends up being smart, but so far i'm really kicking myself. i only invested 1/3 of the old 401(k)/new IRA, keeping the rest in a MM. my thinking was that, eventually, the market will drop and i wanted to make sure i had plenty of "dry powder" to take advantage. now, even if i'd invested 100% of it, i probably wouldn't have simply tripled the investments i made. but if i had... right now i'd have roughly an extra $340K. so that's kind of worst case, that keeping that money basically in cash has cost me over $300K (and counting). and when (not if) the downturn comes, if prices on some of those stocks don't drop below what i paid, then i definitely screwed up. that said, there will be other very nice opportunities when that downturn comes.
but in current hindsight, i absolutely should have invested a much higher percentage.
ugh. i have so little in a roth. primarily because i haven't been able to contribute to my roth in years. and i don't think it makes sense for me to convert my other accounts to a roth now, because i'm probably in about the highest tax bracket i'm gonna be in.
NVDA has been absolutely insane. i bought my first shares shortly after the covid crash, and after the splits my cost basis is roughly $3/share.
it's hard to see anything slowing them down for a while, unless china finally invades taiwan.
Take the huge win and reduce the risk you're assuming. I'd be driving that NVDA position down to 20% or less and spreading the rest out in index funds (eg., VTI, VOO) or a combo of index funds and a wide variety of sector stocks. You're putting your future in the hands of something you likely barely understand.
It's fine to be kicking yourself, hidsight is 20/20, just try not to play catch up by going the super risky route. I was convinced the market was going to tank on more than one occasion and I acted on it in a big way....lost out "bigly". Like you said above, look at the downturn(s) as opportunities to jump on. Easier said than done. All you can do is chart the best path forward from here on.
I have nothing in Roth IRAs. I'm not eligible now due to my income and when I was, I didn't understand WTF it was. I've thought about starting to contribute to the Roth, 401k but at this point, I'd rather all my after tax investments be directed into 100% liquid assets I can use to bridge the gap to access of my tax-deferred monies.
oh, absolutely not. overall, i'm happy with where i'm at. we all know the market will drop significantly at some point, just no idea when it will happen. and i've already learned i can stick with one of warren buffett's most important lessons... be fearful when others are greedy and greedy when others are fearful. when the covid crash happened, i didn't have a lot to invest, but i knew i wanted to be a buyer at that time. so i picked up what i could while it was on sale.
