Reduce Overexposure in Nvidia for Diversification

5 days ago

David IFG

"So if you have all of your money in two stocks, whatever they are, Nvidia, whether it keeps going up, whether it doubles from here, it's probably not a good idea. You want to be in a multitude of investments from fixed income where you're not earning much but it's safe. Now, if you've written this up and you were lucky or you were smart, if you were 25 years old and you put everything you owned in Nvidia, you know, 5 years ago and now you've got 100 grand off of nothing, now is the time to learn how to truly invest through these downturns and for the future. For example, let's say you had 30% of your wealth in Nvidia and I think you would want to trim that to at least half of that. And then what do you put it into? You can put it into a long-dated Treasury security which will pay you for 10 years, 15 years, four and a half, 5%."

The speaker advises investors to avoid concentration risk by trimming an overly large position in Nvidia (e.g., if holding 30% of wealth, consider reducing it by half) and reallocating into safer fixed income investments like long-dated Treasuries. This is risk management advice suggesting diversification as a hedge against potential market downturns.

Related Stocks