I'm new to this, short background: came into a little bit of money last year and was able to pay off all debt and put some aside to invest. Right now I have 13k in a taxable account and 12k in a Roth. I'm putting about $500 each month into those accounts. I'm 40, and apart from that all I have is 12k in a HYSA and 5k in a 401k (I've made some poor financial decisions, but I've learned my lesson.) My strategy at first was to play it safer with ETFs, but the more I researched the returns and data, the more I gradually sold those positions in favor of individual stocks. I want to be aggressive and grow my portfolio, but I don't want to be reckless--at my age I have a LOT of catching up to do. I've built a somewhat aggressive portfolio, heavy in tech and finance. I believe in all of these stocks, but I'm wondering--should I diversify by opening new positions in different sectors, or if I would be better off growing the positions I have now (I really like Visa) Or is it diverse enough because it's many different companies? For reference, this is roughly the breakdown of both portfolios. I feel like I'm "supposed to" diversify, but realistically I don't think Microsoft or Apple or Meta or going anywhere anytime soon, I think they all will continue to grow as they utilize AI in new ways, and the returns seem to have been pretty consistently higher than other sectors. So is it worth it to diversify with other sectors? Or is it already diverse because I have many different positions?
Would love to hear your thoughts!
AXP: 11%
JPM: 8%
V - 12%
COST - 13%
AAPL- 7%
MSFT - 15%
META - 7%
GOOG - 8%
NVDA - 5%
TSM - 4%
AMD - 1%
MRVL - 3%
RKLB - 3%
ASTS - 3%
STRO - .64%
SOUN - .61% (these last two are speculative I know)
I also have 8% of AVUV in one of the accounts and no GOOG in that one.