$14K Investor In TSLA, NVDA, And QQQ Faces Dilemma – 'Looking To Hold For At Least 10 Years' But Is That A Recipe For Disaster? Reddit Debates - MSCI (NYSE:MSCI)

Knowing which stocks to hold for the long term and which to sell before they drag down your portfolio is a challenge every investor faces at least once in their journey.

Some swear by the “buy and hold” strategy, while others advocate for constant rebalancing of a portfolio to mitigate risk. The issue becomes even more pronounced when a portfolio is heavily condensed in high-growth but volatile sectors like technology.

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One such investor recently took to Reddit to seek advice on his $14,228 portfolio, which includes tech giants like Tesla TSLA, Nvidia NVDA, Amazon AMZN, Alphabet GOOGL GOOG)), and Meta Platforms META, alongside ETFs like Vanguard S&P 500 ETF VOO and Invesco QQQ Trust QQQ, and even some crypto-linked stocks like Coinbase Global COIN and MicroStrategy MSTR.

The poster is considering adding Robinhood Markets HOOD to his portfolio but is unsure if now is the right time. He’s also wondering whether to keep high-risk stocks like TSLA, COIN, and MSTR or shift to more stable assets and how to diversify his portfolio further.

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The Reddit community has come forward with plenty of advice in the comments; let’s see what they say.

Hold or Sell? Investor With $14,000 Tech-Heavy Portfolio Ponders Diversification–Reddit Advises Him

Diversify into Other Sectors or Broader ETFs

Many Redditors indicated that the investor’s portfolio is way too concentrated in tech, which increases risk. Instead, they suggested reducing individual stock holdings and adding ETFs to gain exposure to other sectors.

“I am sure you know this, but VOO/QQQ includes all of the individual companies that you have the majority of your portfolio invested in,” a comment says.

Advising the poster to diversify his portfolio, one Redditor suggested choosing either VOO or QQQ, but not both.

“You own good companies! Personally, I would choose one of the two VOO/QQQ not both, but that’s just me and is not really a big deal… Other than that, I like everything else; I think I own all of them, except COIN. Look into buying other sectors, you are too heavily concentrated on tech.”

A commenter advised the poster to add a broad-market ETF to reduce complexity and risk.

“Too complex for this volume, many duplicates and missing diversification. Just do VOO or an [MSCI MSCI] world index and that's it,” he wrote.

“VOO and QQQ are redundant and lend even more weight to the Mag 7. COIN, MSTR, TSLA, and NVDA are no-go long-term, I think. Try to add something more stable like [Raytheon Technologies RTX], [UnitedHealth Group UNH], or [The Coca-Cola Company KO],” a user suggested.

A Redditor recommended the investor add a mix of ETFs and stable dividend-paying stocks to improve the portfolio’s resilience.

“Continue with VOO, [Invesco NASDAQ 100 ETF QQQM] only, and get some solid plays added from now on, diversify a bit. Can stick with ETFs or index, defense, utilities, energy, health care, precious metals, [Berkshire Hathaway BRK BRK.B)], with the trade war, you need stuff that can survive. Look for some balance now with solid legacy names with dividends,” he wrote.

Sell TSLA, COIN, and MSTR

The poster’s most controversial holdings were TSLA, COIN, and MSTR, and some commenters argued that he should get rid of them since they’re too risky for a 10-year hold.

“Sell the TSLA and take the win; it's overvalued dramatically,” a comment reads.

“I'd scrub TSLA and MSTR and put it in VOO or QQQ. Tesla's valuation is and has been insane forever, even after the sell-off. The fundamentals are just awful for its valuation. And that's not even dipping into political stuff. Plus, it's already a decent weight in VOO anyway. And MSTR is straight-up junk,” a Redditor said.

This user also suggested selling the three stocks, saying, “I would personally remove MSTR, COIN, and TSLA and buy more of QQQ/VOO.”

“Get rid of TSLA before it wrecks your portfolio!” another comment reads.

One Redditor shared he would never hold MSTR for the long term, and suggested HOOD instead of COIN.

“No way I would hold MSTR for 10 years. You are playing crypto with COIN; in my opinion, HOOD is the better bet now that they are getting into the higher-margin gambling business. If you want Bitcoin exposure, buy [iShares Bitcoin Trust IBIT].

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