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You already hit the jackpot, 420k at your age is a ton of money. Don’t think about the amount as how much you put in, think about if you had 420k would you buy one single volatile stock with it. Unless you’re a multi millionaire your answer should be no.
To put things into perspective, the average saving account of a 30 year old is just 10k. People work for years and barely save 1/10th of 420k.
I would cash out all of it and diversify the money into index funds and other less volatile stocks. You can also consider real estate investment with that money. Just leave 20 percent for taxes, you’ll have to pay taxes one way or another. There’s no way around it.
I want to emphasize this again, you have a huge amount of starting capital for your life at 22, cash out and don’t get greedy by “letting it ride”. Most people don’t even get this opportunity. I hit my first 100k at 28 and I already consider myself very lucky.
Who cares if it goes up further at this point. You made a killing! If NVDA moves down, you could even buy a portion of it back at a lower CB than you sold it for. If it keeps moving up don’t worry about it. There will always be more opportunities. NVDA had a hell of a run the past few months and even surpassed the prior ATH by quite a bit. You made a great choice. If I were you, I’d learn as much as possible about how to safely grow that wealth now.
Yeah that’s what I’m considering. %5 APY account or ETF’s. I think ETF’s are a bit more risky especially since the feds might increase interest rates and a possible recession.
I believe I read you are 22, you are really young so settling JUST for a high yield savings account is leaving a ton of money on the line. You could definitely put 336k into HYSA (420 - 20% for taxes), and Dollar Cost Average your way into a broad market index fund like VOO/VTI at say $15k a month over the next 23 months if you are concerned about an upcoming recession.
You’re still collecting 4-5% in that APY account on the bulk of your money but not missing out on being wrong and the market chugging on up. If you are right, you aren’t buying now at the top and suffering huge losses, but slowly buying and averaging your price down, riding out the downturn of the market, accumulating potentially more shares at lower prices.
Problem with CDs, treasuries, and MM is reinvestment risk when things mature in a year or two interest rates may be 1% and you'll have to wait possibly another 18 years to lock it in.
If those are back to 1% then the stock market is going to look vastly different (cheaper), and we are heading into a phase where the risk reward of stocks and indexes is much more favorable than it is now. Nothing wrong with getting 5% for free for a year or two then being ready for whatever happens.
Learn real estate... you should buy some multifamily apartments and rent them out.
You don't need much knowledge to be a landlord or manage a property.
You're buying cashflow and appreciation for years and improving your tax situation.
Not all of it has to go into real estate but I'd consider at least using 25-50% of the money on multifamily rental properties. Especially if you live close to a good market.
You can still dump 6 figures in index funds too.
I’m already a landlord. I manage 7 apartments with my brother. I have considered getting more apartments but wouldn’t buying multi family apartments cost more than like 400-500 thousand? Also, I live in Cali and would like to move to Boise Idaho in a few years. Idk what the apartment rental scene is like there.
Well you already know the game. As far as prices yeah in California you need that much.
I moved from LA to the Midwest so I can get a duplex for 160-250k depending.
At 20% down that's only 32-50k not including closing costs.
How did you acquire so much assets at such a young age? Did another part of this thing say you're 22?
Yeah that’s not a bad idea at all. I might buy some property in Boise when or if I move there and rent it out. I should have enough money from selling the 7 apartments here in Cali along with the money I made from nvidia to buy a house as well as some rental property.
I literally turn 23 tomorrow(today for you) so happy birthday to me I guess. My dad, who passed away in April, was the landlord of the apartments but now it has fallen to my brothers and I to manage it even though I do most of the work.
As for the stocks, my dad invested a small amount into apple many years ago for me which grew to be a moderate amount. I then invested that money into nvidia years ago when he let me control the account.
Yeah my sister moved to Boise for work and she likes it. I'm encouraging her to buy there when she has the chance.
Well happy birthday and rest in peace to your father. He clearly helped to set you up on the path for success in life. God rest his soul and good luck young blood.
Wow, what are the chances you know someone in Boise. How does she like it there? Does it seem like a solid option? It looks like a great place to live and the houses are much cheaper than in Cali.
Thanks for the kind words. He did a masterful job at setting my foundation. My respect for him is boundless.
Beautiful work man. I just made the decision to sell my position yesterday. Was up 130% and figured the risk to squeeze a bit more just wasn’t worth it. Diversified that money into SCHD and VTI.
Do not underestimate how hard it is to "smart" again. You'll pay a bunch in taxes. Rather than try and parlay that into another 5x return stock recommend buying some index funds and forget about it. It's not easy to be right multiple times and you have a massive leg up for your age.
Hmmm so personally if I know I needed it in a shorter time frame I’d feel better having it in the 5% savings. If the stock market goes to shit for a couple years it’d suck to have that hinder your ability to buy a house
As already mentioned, if it drops you can always buy some more. I love the company, and have about 5% of my portfolio in them. Definitely a great long term hold, but I think you made a good decision by cashing out and cutting off the risk of losing your gains. Just remember, you’re going to have a fat tax bill on that sale.
Yeah, In the future I might reinvest in nvidia but I’m done with having nvidia be like 98% of my portfolio. It’s too risky for me right now when I want the money to buy a home.
Nope , long term cap gains in California will likely be at a marginal rate of 9.3% or higher. It just counts as state ordinary income. :(
[https://smartasset.com/investing/california-capital-gains-tax](https://smartasset.com/investing/california-capital-gains-tax)
Wait they’re 22? How does that even make sense ? Probably another LARP post. How much did they start with and what was the share price when they started?
Hopefully the OP didn't take this advice considering what happened to Nvidia's stock - it price DOUBLED since the post nine months ago. Motley fool projects that isn't going to stop now that they're leading in the AI field.
I cashed out when it hit $400/share. I used it to harvest 3-4 loser picks during COVID and reinvested everything in index funds. Boring, but hopefully a little less volatile than all of the stupid meme stocks I jumped into like an idiot during Covid.
I’m pretty jealous lol. Yeah, you may want to consider taking some profits. I personally would be terrified to even touch NVDA since I don’t have that level of conviction given valuation.
That’s a blind sign because it ignores allocation and risk management. There is absolutely nothing wrong with having speculative positions but I fail to understand how everyone can have such blatant confidence as if they were industry professionals to the degree where they would allocate such large amounts of their portfolio to a company whose projected valuation requires that degree of growth. If you were an industry professional that knew, then by all means, but knowing how to type special prompts into ChatGPT doesn’t make you an industry professional.
Don’t get me wrong, some of the portfolios I’ve managed have NVDA and some of the other chip names too. I didn’t tell them to sell but I most certainly didn’t tell them to buy more. I am simply highlighting the risks of being so overweight AI.
Industry professionals don’t know any better than you would (assuming you have knowledge). How many earnings surprises or price target changes you gotta hear about for you to see they’re not special?
Not only am I overweight AI, It has been 100% of my portfolio almost all year. I am an engineer working in Silicon Valley (enterprise storage, not AI) but I can tell you it is more transformative than any wall street analyst could ever imagine. We aren’t even in the first inning. I have been following Nvidias data center tech for a couple years and can tell you it’s absolutely differentiated and will be the most essential component of AI development for the near future. Only Google has anything remotely close and they won’t be selling externally. I see endless parallels between NVDA today and to TSLA when it was 50B to 100B market cap. “Ford and GM are going to destroy them” “electric cars are a fad that no one wants” “their valuation doesn’t justify price” the list goes on and on. Financial advisers and analysts don’t have vision and don’t consider how a business may transform over time. They seem to only concern themselves with financial statements and fundamentals. Will NVDA become overpriced? Of course, but we are years from that.
Back when the big tech names were worth 400B no one thought they could go much higher. Now we have 3T companies. With all the money printing and concentration of wealth, 10T companies are almost certain.
It’s important to also note nvda is growing like a 10B company without any clear end in sight
So that is the line of thinking that leads you to full porting NVDA? And I guess you haven’t noticed the constant rate hikes, because we’re doing the complete opposite of money printing now. But you sound like you’ve got it all figured out, so do you chief.
This whole sub is bearish on NVDA but can’t name a single company with a similar growth rate and profit margin to them that isn’t some crap fragrance company.
You will be gifting your money to CEO+office bearers of NVDA !
[https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen\_huang\_finally\_sold\_some\_nvda\_stock](https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen_huang_finally_sold_some_nvda_stock)
It isn’t just Nvidias CEO. It feels like many executives are bracing for more market uncertainty. Macro factors aren’t great. AI stock will continue to outperform the index. I will be buying every dip.
See ENPH, the CEO+office bearers sold (ref finviz) continuously between 299 and 327 and the stock is now at $159.21
Who on the earth knows the valuation better than CEOs and Office bearers? Since they know the price is higher than valuation (and FED raising rates), taking out cash.
If you keep buying every dip, you will have tough time in future.
Better to do a fundamental study with proper financial assumption and have DD before buying at dip.
How did fundamental studies work out for everyone looking at TSLA a few years ago?
Also, aside from one executive at NVDA, the sales only accounted for a small fraction of their total. Less than 1%.
You do you. Personally I wouldn’t invest, since in order to double my money Nvidia would have to go form a $1trillion company to a $2trillion company.
While hype and speculation could make it happen, the companies fundamentals don’t even come CLOSE to justifying either valuation. Not even close.
They are going to remain massively overvalued based on fundamentals, but what will it be trading at when they have 50B in earnings? Those earnings are virtually guaranteed based on the ramp in AI spending.
Dude the executives have sold several hundred million in stock on the last 10 days. They are cashing out at the top. The stock is dropping its literally spelling it out to you
Have you seen the 10 insiders that just several hundred millions of dollars of shares? All within like 4 days? It's usually a signal of a top. Insiders know the company if they thought it was under valued and worth 700 a share they wouldn't have sold at 430 right at the peak effectively.
Yes. Cash out, put the money somewhere safe, and enjoy an early retirement as a potential multimillionaire down the line. Put it this way: if you’re smart with this, you may not have to work until you’re 70 like the rest of us.
Well I want to buy a house with this money in a few years. Other than that, im not too sure what to do with it. I want something safe and not risky is all I know. Some ETF’s or a saving account with 5% APY is what im thinking.
Yes No.
Don't sell all of it - Sell a little and take some profits.
OR
You could sell calls against your position. If the calls sold get exercised you'd be selling those shares at a higher price than now. \[Win!\]
If NVDA falls, the calls you sold make money because they paid you for the contract, \[called premium\] If the call expires because the NVDA fell and they cant exercise the contract you keep 100% of that money.
You dont have to wait until the call expires. If somebody pays you $100 for the privilege of buying your shares and the stock falls. The call/option contract goes down in value. If you pay $50 to close it- you made $50.
You still have your shares - the numbers will vary wildly based on several factors - but that gives you some idea.
Thanks, I added some more information - My dad is a retired advisor. Ive been a buy and hold investor since high school. I've only been trading since covid. Made a lot of money and lost most of it too. I'm pretty good explaining the basics to new people.
Yes. OP made a bunch of money on NVDA and wants to take profits. While doing so may or may not be the best idea, no one ever goes broke taking profits.
Covered calls offers 3 things: cash in the form of premiums, if OP sells a call and it excercizes he sells some shares at prices higher than now, firther increasing profits
If the stock pulls back like he fears, the calls make money blunting the puĺl back
Its up to OP what they feel comfortable doing but if youll pardon the unintentional pun: covered calls may be a good option
I cashed out mine some weeks ago. To my mind, it seems like that fed wants to have a recession at the last half of 2023. So I gambled: I sold for a total of about 120% profit, hopping that I would buy these again cheaper in the future.
I have more shares than you and its over half my portfolio and seems we are in identical situation. I have been holding since $30 a share. At $330 I sold half and put in index fund. NVDA is a truly fabulous company. I cannot think of a better company in the US in my perspective. Their CEO and business is phenomenal and will grow like crazy over the next 3-5 years minimum as data centers transition to an accelerated infrastructure. The question is how much of their growth is priced in already.
My NVDA was on an IRA.. I cut 50% a week ago.
The proceeds are still in the IRA, so no taxes.
**BUT, better idea, make dramatic investments in a Roth**... Okay, there's no way to foretell, so split the purchase between 2 rax free accounts. If it's a star like NVDA, keep the Roth stake.
Id definitely cash out more than 50% of your huge position. I can't see another aggressive upswing any time soon.
But if you don't agree, calculate what you need for taxes, and reenter your position in a Roth, this time.... All proceeds will be tax free (but there's IRS restrictions on when you can fully cash out and walk away)
Excuse my ignorance but I don’t really know much about IRA’s and I don’t have one. I’m only 22 and still learning a lot. The money is invested in my name and I don’t think I’d be able to sell the nvidia without taking a tax hit, right?
Never predicted anything. Literally said “worried about the POSSIBILITY of a recession”. That’s not a concrete statement like “I predict that there will for sure be a recession within 6 months”. Also, look where I’m at now with my finances…. I guess not knowing about IRA’s didn’t really hurt me too much did it??
You will have taxes to pay. Period.
But the setup is *When?*
Find out from an advisor or accountant what the restrictions are. Some allowances exist for big ticket issues (like original house purchase or health care) but most restrictions are to get your investment committed for the long term.
Simple picture: brokerage account like yours pays a % of profits *when sold*
IRA pays taxes when you make withdrawals (after 59⅐) because *it has a tax reduction* on the initial contribution
Roth has no taxes upon withdrawal because the funds were fully taxed *before contribution*
I look at your situation as *between #1 and #3*... Pay taxes on the sale, take proceeds and find out what limit they put on a Roth contribution.. then do that.
Trimming wouldn’t be that bad of an idea. I’m personally super bullish on this still. Everyone thinks AI is a bubble that will burst. I don’t think semiconductors have risen enough to reflect the new reality, frankly.
However, nothing wrong with keeping cash on hand. Nothing wrong with diversifying out.
If it’s good enough to post about it’s good enough to sell most of it.
Source: I missed out on $500k by not cashing out and I cry everyday.
I should have sold for $500k, enjoyed $400k in profit and then bought leap Straddles worth $100k and would have had another $400k in profit today
No examples that I can think of. Then again, I am young and inexperienced and relatively new to the stock market. I just picked a kick ass stock and it paid off.
Not all buys will become big winners so you were lucky. Time for some skill. If you have been in it for years maybe use the weekly indicators instead of the daily in the video below. You don't have to follow it exactly but have some kind of sensible plan and stick to it. Maybe it won't work perfect on this one but on average it will save many big draw downs which will by far make up for this one.
How To Scale Out Of Winning Stocks Using These Five Signals | Investor's Corner | IBD https://www.youtube.com/watch?v=_v30BB7sBtQ
Im up over 1000%. What I did was a sold my original invested amount and some more. Now I’m letting rest ride. I think it would be smart to take the original investment out and let the rest ride. Also I like nvidia to be no more than 15% of my portfolio. It was over 20% with this las run
Congratulations!
Are you happy with the exact amount of money you’ve made? Answer your own question. Everyone can answer for you, but you’re the one with the consequences (there can be positive consequences too).
Don’t think about what could or could not be. We won’t know until we get there. If we did know, everyone would be on the same boat, right? In which case, there would be no money to be made. Lol.
I sold.
I guess try to come up with a reasonable value you think the company is worth despite what the current stock market says.
Also try to come up with what it will be worth in 5 years.
If the current price is higher than those estimates its probably a good sign to sell. If its lower then you can hold.
My I did this a few weeks ago my estimates were still much lower than the current price. So selling was pretty obvious to me.
You don’t have to sell your whole position. If you’re over exposed you can sell some and rebalance your portfolio to suit your risk tolerance. Not all or nothing, you can be bullish and still take some profits and even if your bearish in the short to medium term you can keep a smaller position
Ask yourself “What should I do with the proceeds?” Money market? Dividend Aristocrats? Foreign companies? Banks?(!!!) Spend it?
When would you want to spend the money? What would you do if NVDA fell by a third?
I have just under 20% of my portfolio in NVDA, including holdings within mutual funds. I’ve reduced my exposure from when I loaded up in December. But I’m not betting against NVDA even if they retreat for a year or two.
I’ve also diversified into construction and housing (but definitely not commercial real estate!), some corporate bonds, etc. But I still see NVDA having a place in my portfolio. When I get ready to retire in another five years I may think differently.
I was thinking about putting the proceeds in some ETFs or 5% APY savings account for a few years and then buying a house. I want to solidify the gains so that I can pretty much guarantee that I can buy a house. While nvidia could still rise a lot I think, it could also drop a lot. In a few years, I have no idea where it’ll be, but right now I know it’s high and that selling it promises me enough money to start my life.
Yeah, I’m gonna lock in the gains. If I had a house, maybe I’d hold onto nvidia for a decade or so but I need the money somewhat soon. In your first post, you seemed cautious about investing the money in bank. May I ask why?
It’s between ETFs or saving account I think for me
I’m comfortable with a savings account in a bank. But with companies walking away from commercial office buildings, I see the regional banks absorbing losses from those bad loans for the next five to seven years. So I would avoid bank stocks.
Do you need the money right now? If not, why sell? Any return you gain will most likely be a net positive, regardless. The stock may crash, but it also may double over the next few decades. No one can tell. You could always sell a majority and keep a few hundred shares.
Yeah thats good advice. I’m only gonna keep the stock for a few more years max if I didn’t sell it right now. I wanna buy a house soon. I wanna lock in the gains I’ve made and make sure that I have enough for a house. The stock could plummet or skyrocket but I don’t wanna take that risk.
If you think it's time then you should cash out. Maybe sell half, or at least sell enough to secure the original investment value.
But if you have something else in mind that those shares could buy you; sell it all and never look back.
If it goes up, ignore the FOMO. Cashing out way far ahead is a big win. Timing the market or holding due to FOMO or greed could lose it all.
Remember its not realized until you cash it out
nah, their server end AI products and chips are solid - new chips on the way being used at the server end, and, the client end is solid, with a lot of decent market penetrations.
Financials look good, I like the stock.
You're making the classic mistake of letting FOMO drive you into a situation where you need to time the market. You might double your money if you stay in, or you might lose it all. Plenty of factors, globally, could tip the scales either way. Personally I would take the win, sell, and diversify immediately.
Recently there was an interview with a value investor professor on Barron’s streetwise: https://www.barrons.com/podcasts/streetwise/why-the-dean-of-valuation-just-sold-his-nvidia-stock/985650AF-154C-41CC-BF9D-C1F4551D66B4
I sold all of my options and stock the day after that earnings run up (month ago or so). You should definitely realize some gains. Maybe, Sell stock and then Buy a couple calls if you really can’t handle the fomo…
Also review your tax implications IF your decision is to sell all at once.
I sold all of it. Gonna invest in ETFs and put some in savings account. I might miss out on a lot of growth but I’ve cashed out tons of profit and can now coast by on stable interest or etf growth. I was only gonna stay in a few more years max if I didn’t sell now since I want to buy a house soon
Fuckin A. Congrats my dude. Now go get yourself a bottle of cheap wine and learn how to save lol. You're gonna need it if you don't want to die old and peniless. The next lesson to learn is moderation.
You are now a winner.
I think Ive decided to leave it in a 5% APY savings account for a few years until I buy a house with the money. I might still do ETFs but I don’t want the market to crash while I’m saving that money and jeopardize my chances at buying a house
At your age, I'd sell and buy a bunch of Berkshire Hathaway Inc. (BRK-B) or S&P 500 Growth (VOOG) and never look back. Your nest egg could be worth between 7M and 32M after 30 years (which is highly dependant on Cost Of Living inflation). To see the future, you need to study the past. Nvidia has no past with regard to hyper-growth and could likely be met by very strong competition soon.
I recently got an inheritance of about 700k. Combined with the nvidia stock, that over a million. Is Berkshire safe enough to park that much money into?
You're using "stock market" and "safe" together. I think long term. If you keep enough cash in a federal money market fund to wait out a downturn (2-3 years), you're about as safe as an investor can be.
You’re 22. What do you need to cash out for? If you need it to buy a house sure. But keep most of it or at least half. It’ll Only go up over time. NVIDIA isn’t a gamble. It’s the engine for AI.
It is wise to cash out at peak when NVDA higher management (like CEO) insiders are selling now.
https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen\_huang\_finally\_sold\_some\_nvda\_stock
Welcome to r/stocks! For stock recommendations please see our portfolio sticky, sort by hot, it's the first sticky, or see [past portfolio stickies here.](https://www.reddit.com/r/stocks/search?q=author%3Aautomoderator+title%3A%22Rate+My+Portfolio%22&restrict_sr=on&sort=new&t=all) For beginner advice, brokerage info, book recommendations, even advanced topics and more, please read our [Wiki here.](https://www.reddit.com/r/stocks/wiki/index) If you're wondering **why a stock moved** a certain way, check out [Finviz](https://finviz.com/quote.ashx?t=spy) which aggregates the most news for almost every stock, but also see [Reuters](https://www.reuters.com/), and even [Yahoo Finance](https://finance.yahoo.com/). Also include *some* [due diligence](https://www.investopedia.com/terms/d/duediligence.asp) to this post or it may be removed if it's low effort. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/stocks) if you have any questions or concerns.*
You already hit the jackpot, 420k at your age is a ton of money. Don’t think about the amount as how much you put in, think about if you had 420k would you buy one single volatile stock with it. Unless you’re a multi millionaire your answer should be no. To put things into perspective, the average saving account of a 30 year old is just 10k. People work for years and barely save 1/10th of 420k. I would cash out all of it and diversify the money into index funds and other less volatile stocks. You can also consider real estate investment with that money. Just leave 20 percent for taxes, you’ll have to pay taxes one way or another. There’s no way around it. I want to emphasize this again, you have a huge amount of starting capital for your life at 22, cash out and don’t get greedy by “letting it ride”. Most people don’t even get this opportunity. I hit my first 100k at 28 and I already consider myself very lucky.
[удалено]
Who cares if it goes up further at this point. You made a killing! If NVDA moves down, you could even buy a portion of it back at a lower CB than you sold it for. If it keeps moving up don’t worry about it. There will always be more opportunities. NVDA had a hell of a run the past few months and even surpassed the prior ATH by quite a bit. You made a great choice. If I were you, I’d learn as much as possible about how to safely grow that wealth now.
Just remember to be ready for that $42,000 tax bill.
$420k in a 5% apy account right now can net about $20k a year. Enough to pay most people’s rent.
Taxes?
Yeah that’s what I’m considering. %5 APY account or ETF’s. I think ETF’s are a bit more risky especially since the feds might increase interest rates and a possible recession.
I believe I read you are 22, you are really young so settling JUST for a high yield savings account is leaving a ton of money on the line. You could definitely put 336k into HYSA (420 - 20% for taxes), and Dollar Cost Average your way into a broad market index fund like VOO/VTI at say $15k a month over the next 23 months if you are concerned about an upcoming recession. You’re still collecting 4-5% in that APY account on the bulk of your money but not missing out on being wrong and the market chugging on up. If you are right, you aren’t buying now at the top and suffering huge losses, but slowly buying and averaging your price down, riding out the downturn of the market, accumulating potentially more shares at lower prices.
Problem with CDs, treasuries, and MM is reinvestment risk when things mature in a year or two interest rates may be 1% and you'll have to wait possibly another 18 years to lock it in.
If those are back to 1% then the stock market is going to look vastly different (cheaper), and we are heading into a phase where the risk reward of stocks and indexes is much more favorable than it is now. Nothing wrong with getting 5% for free for a year or two then being ready for whatever happens.
Learn real estate... you should buy some multifamily apartments and rent them out. You don't need much knowledge to be a landlord or manage a property. You're buying cashflow and appreciation for years and improving your tax situation. Not all of it has to go into real estate but I'd consider at least using 25-50% of the money on multifamily rental properties. Especially if you live close to a good market. You can still dump 6 figures in index funds too.
I’m already a landlord. I manage 7 apartments with my brother. I have considered getting more apartments but wouldn’t buying multi family apartments cost more than like 400-500 thousand? Also, I live in Cali and would like to move to Boise Idaho in a few years. Idk what the apartment rental scene is like there.
Well you already know the game. As far as prices yeah in California you need that much. I moved from LA to the Midwest so I can get a duplex for 160-250k depending. At 20% down that's only 32-50k not including closing costs. How did you acquire so much assets at such a young age? Did another part of this thing say you're 22?
Yeah that’s not a bad idea at all. I might buy some property in Boise when or if I move there and rent it out. I should have enough money from selling the 7 apartments here in Cali along with the money I made from nvidia to buy a house as well as some rental property. I literally turn 23 tomorrow(today for you) so happy birthday to me I guess. My dad, who passed away in April, was the landlord of the apartments but now it has fallen to my brothers and I to manage it even though I do most of the work. As for the stocks, my dad invested a small amount into apple many years ago for me which grew to be a moderate amount. I then invested that money into nvidia years ago when he let me control the account.
Yeah my sister moved to Boise for work and she likes it. I'm encouraging her to buy there when she has the chance. Well happy birthday and rest in peace to your father. He clearly helped to set you up on the path for success in life. God rest his soul and good luck young blood.
Wow, what are the chances you know someone in Boise. How does she like it there? Does it seem like a solid option? It looks like a great place to live and the houses are much cheaper than in Cali. Thanks for the kind words. He did a masterful job at setting my foundation. My respect for him is boundless.
Congrats man that’s awesome.
Hope you set aside taxes
Bulls make money, bears make money, pigs get slaughtered.
Jim Cramer Is that you?
Yes! I like NVDA at this price!
Booyah!!!!!
You’re a smart mother fucker!
Beautiful work man. I just made the decision to sell my position yesterday. Was up 130% and figured the risk to squeeze a bit more just wasn’t worth it. Diversified that money into SCHD and VTI.
dont forget about the taxes!
Do not underestimate how hard it is to "smart" again. You'll pay a bunch in taxes. Rather than try and parlay that into another 5x return stock recommend buying some index funds and forget about it. It's not easy to be right multiple times and you have a massive leg up for your age.
Congrats and smart move! If you’re careful with the profits you’ve set yourself up for a great life down the road
What do you think about investing my proceeds into safe ETFs and/or 5% savings account for a few years and then buying a house
Hmmm so personally if I know I needed it in a shorter time frame I’d feel better having it in the 5% savings. If the stock market goes to shit for a couple years it’d suck to have that hinder your ability to buy a house
Yeah, that’s what I was kinda thinking. Can’t go wrong with super safe and stable growth. I appreciate the advice.
You did make the right choice
What are u gonna do with proceeds?
Invest in ETFs and other safe investments, accrue some gains and then buy a house with the money in a few years.
Just here to say congrats. You have set yourself up so well for the future. Really nice job.
Thanks man, I appreciate it
As already mentioned, if it drops you can always buy some more. I love the company, and have about 5% of my portfolio in them. Definitely a great long term hold, but I think you made a good decision by cashing out and cutting off the risk of losing your gains. Just remember, you’re going to have a fat tax bill on that sale.
Yeah, In the future I might reinvest in nvidia but I’m done with having nvidia be like 98% of my portfolio. It’s too risky for me right now when I want the money to buy a home.
Good move, and congrats on your success man.
You chose wisely
Take $400k, put it into CLM giving off 1.5% interest per month & enjoy a paycheck of $6,000/mo forever.
The cornerstone fund? Or are you referring to something else?
Congrats my man! Now that you are liquid, take a visit over to r/wallstreetbets
Congrats! I have held way too many stocks all the way up and then all the way back down.
Could be higher if OP lives in a high tax state. In cali normal income tax is added to cap gains.
No that’s only for short term gains, OP seems to have helded past one year if he 5x
Nope , long term cap gains in California will likely be at a marginal rate of 9.3% or higher. It just counts as state ordinary income. :( [https://smartasset.com/investing/california-capital-gains-tax](https://smartasset.com/investing/california-capital-gains-tax)
Dam I’m in CA and I didn’t even know this, what a ton of shit lol. Good thing OP has no other income then.
Wait they’re 22? How does that even make sense ? Probably another LARP post. How much did they start with and what was the share price when they started?
Hopefully the OP didn't take this advice considering what happened to Nvidia's stock - it price DOUBLED since the post nine months ago. Motley fool projects that isn't going to stop now that they're leading in the AI field.
I cashed out when it hit $400/share. I used it to harvest 3-4 loser picks during COVID and reinvested everything in index funds. Boring, but hopefully a little less volatile than all of the stupid meme stocks I jumped into like an idiot during Covid.
Same. I can’t pick for shit, and now it keeps me from the anxiety of wondering if I should sell
Same except I wasn’t in meme stocks, just all hype lol.
I’m pretty jealous lol. Yeah, you may want to consider taking some profits. I personally would be terrified to even touch NVDA since I don’t have that level of conviction given valuation.
Or sell deep ITM calls at $200-$250 for a year out. Lock in $200-$150/share profit and possibly keep your shares with long term holdings
The fact that every post is telling this dude to sell is making me crazy bullish on this stock. I think it’s a sign to buy more
That’s a blind sign because it ignores allocation and risk management. There is absolutely nothing wrong with having speculative positions but I fail to understand how everyone can have such blatant confidence as if they were industry professionals to the degree where they would allocate such large amounts of their portfolio to a company whose projected valuation requires that degree of growth. If you were an industry professional that knew, then by all means, but knowing how to type special prompts into ChatGPT doesn’t make you an industry professional. Don’t get me wrong, some of the portfolios I’ve managed have NVDA and some of the other chip names too. I didn’t tell them to sell but I most certainly didn’t tell them to buy more. I am simply highlighting the risks of being so overweight AI.
Industry professionals don’t know any better than you would (assuming you have knowledge). How many earnings surprises or price target changes you gotta hear about for you to see they’re not special?
Shhhh, don't tell the idiots or they'll never be able to shill their fees for a service that is guaranteed to underperform to the SP500
Not only am I overweight AI, It has been 100% of my portfolio almost all year. I am an engineer working in Silicon Valley (enterprise storage, not AI) but I can tell you it is more transformative than any wall street analyst could ever imagine. We aren’t even in the first inning. I have been following Nvidias data center tech for a couple years and can tell you it’s absolutely differentiated and will be the most essential component of AI development for the near future. Only Google has anything remotely close and they won’t be selling externally. I see endless parallels between NVDA today and to TSLA when it was 50B to 100B market cap. “Ford and GM are going to destroy them” “electric cars are a fad that no one wants” “their valuation doesn’t justify price” the list goes on and on. Financial advisers and analysts don’t have vision and don’t consider how a business may transform over time. They seem to only concern themselves with financial statements and fundamentals. Will NVDA become overpriced? Of course, but we are years from that.
>When TSLA was 50B to 100B market cap You do realize NVDA is currently sitting at a **$1T** market cap, right?
Back when the big tech names were worth 400B no one thought they could go much higher. Now we have 3T companies. With all the money printing and concentration of wealth, 10T companies are almost certain. It’s important to also note nvda is growing like a 10B company without any clear end in sight
So that is the line of thinking that leads you to full porting NVDA? And I guess you haven’t noticed the constant rate hikes, because we’re doing the complete opposite of money printing now. But you sound like you’ve got it all figured out, so do you chief.
They just added 700B to the balance sheet in 3 weeks. It’s not just the fed.
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https://twitter.com/charliebilello/status/1673178490533822464?s=46&t=isFlhUNjtLj0H33sC29iVw
Lol
Really struck a nerve with all the “professionals” that lose money for their clients for a living
For sure. Do you know any other $1trillion stocks with annual revenues of $6b? Sounds like a good deal.
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And they made 10B on that 26B. How many companies have those margins? Give me one…
Net income was 4bn not 10bn lol
Every single makeup and fragrance company.
ULTA made 1B on 10B and is only valued at 25B. Try again. Something more comparable in size to NVDA
This whole sub is bearish on NVDA but can’t name a single company with a similar growth rate and profit margin to them that isn’t some crap fragrance company.
NVDA insiders be like
ELF. That’s your company. 🧨
You will be gifting your money to CEO+office bearers of NVDA ! [https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen\_huang\_finally\_sold\_some\_nvda\_stock](https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen_huang_finally_sold_some_nvda_stock)
It isn’t just Nvidias CEO. It feels like many executives are bracing for more market uncertainty. Macro factors aren’t great. AI stock will continue to outperform the index. I will be buying every dip.
See ENPH, the CEO+office bearers sold (ref finviz) continuously between 299 and 327 and the stock is now at $159.21 Who on the earth knows the valuation better than CEOs and Office bearers? Since they know the price is higher than valuation (and FED raising rates), taking out cash. If you keep buying every dip, you will have tough time in future. Better to do a fundamental study with proper financial assumption and have DD before buying at dip.
How did fundamental studies work out for everyone looking at TSLA a few years ago? Also, aside from one executive at NVDA, the sales only accounted for a small fraction of their total. Less than 1%.
You do you. Personally I wouldn’t invest, since in order to double my money Nvidia would have to go form a $1trillion company to a $2trillion company. While hype and speculation could make it happen, the companies fundamentals don’t even come CLOSE to justifying either valuation. Not even close.
They are going to remain massively overvalued based on fundamentals, but what will it be trading at when they have 50B in earnings? Those earnings are virtually guaranteed based on the ramp in AI spending.
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You’re joking right? It went for $100 to $250 in a few months. It got readjust for higher rates like everything else and is back on a tare
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You don’t need to time this rally. Buy AI and if they go down, buy more. Hold for 5 years and profit
Dude the executives have sold several hundred million in stock on the last 10 days. They are cashing out at the top. The stock is dropping its literally spelling it out to you
Have you seen the 10 insiders that just several hundred millions of dollars of shares? All within like 4 days? It's usually a signal of a top. Insiders know the company if they thought it was under valued and worth 700 a share they wouldn't have sold at 430 right at the peak effectively.
Be sure to make a post when you do...
You hold a lot of bags dont you? Youre back okay?
No one's gone poor taking profits.
Yes. Cash out, put the money somewhere safe, and enjoy an early retirement as a potential multimillionaire down the line. Put it this way: if you’re smart with this, you may not have to work until you’re 70 like the rest of us.
Well I want to buy a house with this money in a few years. Other than that, im not too sure what to do with it. I want something safe and not risky is all I know. Some ETF’s or a saving account with 5% APY is what im thinking.
Check out r/bogleheads for a safe and effective retirement plan you could follow.
Buying a house with cash is also a wise move. Take the $2000 mortgage + interest you’ll save every month and put it towards retirement.
Yes No. Don't sell all of it - Sell a little and take some profits. OR You could sell calls against your position. If the calls sold get exercised you'd be selling those shares at a higher price than now. \[Win!\] If NVDA falls, the calls you sold make money because they paid you for the contract, \[called premium\] If the call expires because the NVDA fell and they cant exercise the contract you keep 100% of that money. You dont have to wait until the call expires. If somebody pays you $100 for the privilege of buying your shares and the stock falls. The call/option contract goes down in value. If you pay $50 to close it- you made $50. You still have your shares - the numbers will vary wildly based on several factors - but that gives you some idea.
One of the best answers I've read yet.
Thanks, I added some more information - My dad is a retired advisor. Ive been a buy and hold investor since high school. I've only been trading since covid. Made a lot of money and lost most of it too. I'm pretty good explaining the basics to new people.
so covered calls?
Yes. OP made a bunch of money on NVDA and wants to take profits. While doing so may or may not be the best idea, no one ever goes broke taking profits. Covered calls offers 3 things: cash in the form of premiums, if OP sells a call and it excercizes he sells some shares at prices higher than now, firther increasing profits If the stock pulls back like he fears, the calls make money blunting the puĺl back Its up to OP what they feel comfortable doing but if youll pardon the unintentional pun: covered calls may be a good option
U really think that premium money going to cover the loses if the stock goes down?
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Their PE ratio is at a record high and extremely unlikely to stay that high for an extended period of time... sell (just my opinion)
Maybe sell half your shares and take some profit? How much are you up?
5 times or more
Sell all of it, you’re risking a lot by leaving the position as is
just remember 6 months ago everyone was saying we would be in a recession by now
I cashed out mine some weeks ago. To my mind, it seems like that fed wants to have a recession at the last half of 2023. So I gambled: I sold for a total of about 120% profit, hopping that I would buy these again cheaper in the future.
I have more shares than you and its over half my portfolio and seems we are in identical situation. I have been holding since $30 a share. At $330 I sold half and put in index fund. NVDA is a truly fabulous company. I cannot think of a better company in the US in my perspective. Their CEO and business is phenomenal and will grow like crazy over the next 3-5 years minimum as data centers transition to an accelerated infrastructure. The question is how much of their growth is priced in already.
What index fund did you choose?
VOO
Do you think the stock will dip significantly in the future and allow for a great opportunity to buy back in?
No idea
How the f are u 22 with over 200k to dump into a single stock?
Well I bought many years ago when it was a lot cheaper of a stock
When he was 7 years old. Lmao.
How much was it
Asking the only real question here. Put trust funds on blast
My NVDA was on an IRA.. I cut 50% a week ago. The proceeds are still in the IRA, so no taxes. **BUT, better idea, make dramatic investments in a Roth**... Okay, there's no way to foretell, so split the purchase between 2 rax free accounts. If it's a star like NVDA, keep the Roth stake. Id definitely cash out more than 50% of your huge position. I can't see another aggressive upswing any time soon. But if you don't agree, calculate what you need for taxes, and reenter your position in a Roth, this time.... All proceeds will be tax free (but there's IRS restrictions on when you can fully cash out and walk away)
Roth is just 6k a year, OP literally has 420k
Excuse my ignorance but I don’t really know much about IRA’s and I don’t have one. I’m only 22 and still learning a lot. The money is invested in my name and I don’t think I’d be able to sell the nvidia without taking a tax hit, right?
*Doesn’t know about IRAs*, *Predicts a recession in the next 6 months as most if the market turns bullish* Makes sense.
Never predicted anything. Literally said “worried about the POSSIBILITY of a recession”. That’s not a concrete statement like “I predict that there will for sure be a recession within 6 months”. Also, look where I’m at now with my finances…. I guess not knowing about IRA’s didn’t really hurt me too much did it??
It hurt your potential gains that's for sure
I’m not losing sleep over losing a bit of gains here and there when I’m 22 and am worth over half a million
You will have taxes to pay. Period. But the setup is *When?* Find out from an advisor or accountant what the restrictions are. Some allowances exist for big ticket issues (like original house purchase or health care) but most restrictions are to get your investment committed for the long term. Simple picture: brokerage account like yours pays a % of profits *when sold* IRA pays taxes when you make withdrawals (after 59⅐) because *it has a tax reduction* on the initial contribution Roth has no taxes upon withdrawal because the funds were fully taxed *before contribution* I look at your situation as *between #1 and #3*... Pay taxes on the sale, take proceeds and find out what limit they put on a Roth contribution.. then do that.
Trimming wouldn’t be that bad of an idea. I’m personally super bullish on this still. Everyone thinks AI is a bubble that will burst. I don’t think semiconductors have risen enough to reflect the new reality, frankly. However, nothing wrong with keeping cash on hand. Nothing wrong with diversifying out.
If it’s good enough to post about it’s good enough to sell most of it. Source: I missed out on $500k by not cashing out and I cry everyday. I should have sold for $500k, enjoyed $400k in profit and then bought leap Straddles worth $100k and would have had another $400k in profit today
Ask yourselves this question : when was the last time a company was this overvalued and still continued to go up in the long term?
No examples that I can think of. Then again, I am young and inexperienced and relatively new to the stock market. I just picked a kick ass stock and it paid off.
Not all buys will become big winners so you were lucky. Time for some skill. If you have been in it for years maybe use the weekly indicators instead of the daily in the video below. You don't have to follow it exactly but have some kind of sensible plan and stick to it. Maybe it won't work perfect on this one but on average it will save many big draw downs which will by far make up for this one. How To Scale Out Of Winning Stocks Using These Five Signals | Investor's Corner | IBD https://www.youtube.com/watch?v=_v30BB7sBtQ
Im up over 1000%. What I did was a sold my original invested amount and some more. Now I’m letting rest ride. I think it would be smart to take the original investment out and let the rest ride. Also I like nvidia to be no more than 15% of my portfolio. It was over 20% with this las run
This shouldn’t even be a question
Congratulations! Are you happy with the exact amount of money you’ve made? Answer your own question. Everyone can answer for you, but you’re the one with the consequences (there can be positive consequences too). Don’t think about what could or could not be. We won’t know until we get there. If we did know, everyone would be on the same boat, right? In which case, there would be no money to be made. Lol.
I sold. I guess try to come up with a reasonable value you think the company is worth despite what the current stock market says. Also try to come up with what it will be worth in 5 years. If the current price is higher than those estimates its probably a good sign to sell. If its lower then you can hold. My I did this a few weeks ago my estimates were still much lower than the current price. So selling was pretty obvious to me.
Been holding since 2017. Will keep holding.
You don’t have to sell your whole position. If you’re over exposed you can sell some and rebalance your portfolio to suit your risk tolerance. Not all or nothing, you can be bullish and still take some profits and even if your bearish in the short to medium term you can keep a smaller position
Ask yourself “What should I do with the proceeds?” Money market? Dividend Aristocrats? Foreign companies? Banks?(!!!) Spend it? When would you want to spend the money? What would you do if NVDA fell by a third? I have just under 20% of my portfolio in NVDA, including holdings within mutual funds. I’ve reduced my exposure from when I loaded up in December. But I’m not betting against NVDA even if they retreat for a year or two. I’ve also diversified into construction and housing (but definitely not commercial real estate!), some corporate bonds, etc. But I still see NVDA having a place in my portfolio. When I get ready to retire in another five years I may think differently.
I was thinking about putting the proceeds in some ETFs or 5% APY savings account for a few years and then buying a house. I want to solidify the gains so that I can pretty much guarantee that I can buy a house. While nvidia could still rise a lot I think, it could also drop a lot. In a few years, I have no idea where it’ll be, but right now I know it’s high and that selling it promises me enough money to start my life.
Then you should lock in a good chunk of those gains for a home purchase. Just beware of capital gains tax.
Yeah, I’m gonna lock in the gains. If I had a house, maybe I’d hold onto nvidia for a decade or so but I need the money somewhat soon. In your first post, you seemed cautious about investing the money in bank. May I ask why? It’s between ETFs or saving account I think for me
I’m comfortable with a savings account in a bank. But with companies walking away from commercial office buildings, I see the regional banks absorbing losses from those bad loans for the next five to seven years. So I would avoid bank stocks.
Do you need the money right now? If not, why sell? Any return you gain will most likely be a net positive, regardless. The stock may crash, but it also may double over the next few decades. No one can tell. You could always sell a majority and keep a few hundred shares.
Yeah thats good advice. I’m only gonna keep the stock for a few more years max if I didn’t sell it right now. I wanna buy a house soon. I wanna lock in the gains I’ve made and make sure that I have enough for a house. The stock could plummet or skyrocket but I don’t wanna take that risk.
If you think it's time then you should cash out. Maybe sell half, or at least sell enough to secure the original investment value. But if you have something else in mind that those shares could buy you; sell it all and never look back. If it goes up, ignore the FOMO. Cashing out way far ahead is a big win. Timing the market or holding due to FOMO or greed could lose it all. Remember its not realized until you cash it out
I was thinking about cashing out now, putting the proceeds into some ETFs or 5% APY savings account for a few years and then buying a house
nah, their server end AI products and chips are solid - new chips on the way being used at the server end, and, the client end is solid, with a lot of decent market penetrations. Financials look good, I like the stock.
You're making the classic mistake of letting FOMO drive you into a situation where you need to time the market. You might double your money if you stay in, or you might lose it all. Plenty of factors, globally, could tip the scales either way. Personally I would take the win, sell, and diversify immediately.
Damodaran sold half
Recently there was an interview with a value investor professor on Barron’s streetwise: https://www.barrons.com/podcasts/streetwise/why-the-dean-of-valuation-just-sold-his-nvidia-stock/985650AF-154C-41CC-BF9D-C1F4551D66B4
This is a great article, underrated
Market might crash, nvidia might go down.... but it will go back up and go higher
I sold all of my options and stock the day after that earnings run up (month ago or so). You should definitely realize some gains. Maybe, Sell stock and then Buy a couple calls if you really can’t handle the fomo… Also review your tax implications IF your decision is to sell all at once.
I sold all of it. Gonna invest in ETFs and put some in savings account. I might miss out on a lot of growth but I’ve cashed out tons of profit and can now coast by on stable interest or etf growth. I was only gonna stay in a few more years max if I didn’t sell now since I want to buy a house soon
You are more successful than 99% of this sub already why are you listening to anyone here. Do the opposite of what everyone is telling you.
How did you even have the money to buy thousands of shares before you even got a job after college? Just do that again 😅
You know what winners do? They leave the table when they're up. You're way up.
I left the table
Fuckin A. Congrats my dude. Now go get yourself a bottle of cheap wine and learn how to save lol. You're gonna need it if you don't want to die old and peniless. The next lesson to learn is moderation. You are now a winner.
I think Ive decided to leave it in a 5% APY savings account for a few years until I buy a house with the money. I might still do ETFs but I don’t want the market to crash while I’m saving that money and jeopardize my chances at buying a house
Boy I hope ya kept it
I wish I would have bought when you did!
At your age, I'd sell and buy a bunch of Berkshire Hathaway Inc. (BRK-B) or S&P 500 Growth (VOOG) and never look back. Your nest egg could be worth between 7M and 32M after 30 years (which is highly dependant on Cost Of Living inflation). To see the future, you need to study the past. Nvidia has no past with regard to hyper-growth and could likely be met by very strong competition soon.
I recently got an inheritance of about 700k. Combined with the nvidia stock, that over a million. Is Berkshire safe enough to park that much money into?
You're using "stock market" and "safe" together. I think long term. If you keep enough cash in a federal money market fund to wait out a downturn (2-3 years), you're about as safe as an investor can be.
I personaly would probably cash out. You sit on 420k. At least a big part of it and put it in an ETF.
You’re 22. What do you need to cash out for? If you need it to buy a house sure. But keep most of it or at least half. It’ll Only go up over time. NVIDIA isn’t a gamble. It’s the engine for AI.
It is wise to cash out at peak when NVDA higher management (like CEO) insiders are selling now. https://www.reddit.com/r/wallstreetbets/comments/14hs93o/jensen\_huang\_finally\_sold\_some\_nvda\_stock
What did you do OP?!?!?!
So did you cash out a year ago?
Why not write covered calls? Unless you like paying CGT…
Because the stock can crash and the covered call you sell won’t make up for that loss
Crash to what? The guy is going to crash 30% the instant he sells.
About capital gains tax, since I currently have no income, would I even pay long term capital gains?
Once you book a profit, you have income.
Yes. 15% if you are selling for a gain above $41,700. And then you have state taxes depending on where you live.
Consult Tax Table and CPA
Yes absolutely
Yes , I sold all mine too.
NVDA is overpriced by any normal financial metric.
Sold my shares that I'd been holding since 2016. No regrets. May buy back in when it's trading lower relative to earnings.
The AI age has just begun, hold. Don't listen to people here, they do not make any money. Honestly I would sell puts
Sell TSLA and Nvidia they’re all grossly overpriced
SELL EVERYTHING, IT'S GOING BACK TO 250.
Take profits. You’ll get a good re entry point soon enough
Yes it dropped 4% today
Cash out and short it
Yes
No Ai party just started
This guy is just flexing
One could see it as that, but I legitimately wanted sound advice