I just did a Morningstar X-Ray of my retirement portfolio and Microsoft is at 3.36%, this includes what I own as an individually held stock as well as what is in my mutual funds. So at age 64, I have 3.36% of my retirement in Microsoft compared to a couple who has 20% of their portfolio in Nvidia.I really doubt, at 66, that you have 20% of your retirement portfolio on one stock? I would call that Gambling, by any stretch of the imagination. OP's husband is not 29.
While I am at it, Nedsaid has not rebalanced his portfolio since just before Covid hit. December of 2019, I think. I just have let the portfolio run and the allocation to stocks within the retirement portfolio is about 65% now. So the old geezer is getting a bit frisky in his old age and feeling the bull market. I am feeling more confident and I like the feeling. Not quite the stuff of toupees, a new sports car, and a new flame but for me, it will have to do. Haven't even done the Nvidia thing yet. I guess getting a bit of a caffeine rush from a Mocha at the coffee place is about as wild as it gets for me.
So lets see how this goes before hubby gets sent to Gambler's Anonymous. I think what he did was perfectly normal for a lot of men, could be a problem but maybe not. I have seen guys do some crazy things. What enquiring minds want to know is what Dr. Phil thinks about this.
I agree men tend towards overconfidence in their own abilities, even in provably random situations.
This may be testosterone at work, or it could be something else.
One can see the evolutionary advantage. A semi-nomadic tribal group (of up to 300 people, which anthropologists tell us was sort of the maximum for pre agricultural man) needs individuals who take excessive risks. Because sometimes they pay off.
In particular, if males take those risks, and some of them get killed as a result, then they can be replaced. And the payoff for the group of high risk strategy, succeeding, can be very great. We move to a more fertile area. We escape a looming natural disaster. We cross the Siberian land bridge into North and South America (some hypothesis/ evidence suggests this may have been done by outrigger log canoe, down the coast, all the way to Chile).
It's just for the individual, this is counterproductive to their own survival. Nature's cruel logic discriminates in favour of the group over the individual.
Not here to do a psychological analysis on the Original Poster's husband, I think having such a big position in one stock is foolhardy but within the range of what normal human males might do. I just hope the OP and her husband can come to an agreement to trim his position in this stock quite a ways down. There are both relationship and financial issues here.
Though I do not own Nvidia individually, the X-Ray says that it is the number 10 stock holding with my portfolio. The Nedsaid Magnificent Two, which is Microsoft and Applied Materials are 5.28% of my portfolio, they are stocks number 1 and 2. That is high for me, but I am hardly hanging way out there. My stock allocation is now 65.85% of the retirement portfolio. I haven't rebalanced my portfolio since December 2019. I am enjoying the ride atop a bull market, at some point I will reallocate.
Statistics: Posted by nedsaid — Wed Jun 05, 2024 9:07 pm — Replies 144 — Views 17559