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Selling large position ($1M+) in single stock - DCA or sell all?

T
Feb 17, 2025 · 05:26

As the title says, I’m planning to sell a large position (rougly $1.5M) in a single stock in order to diversify.

The stock has buy/hold ratings by analysts across the board, but given it’s a substantial portion of my portfolio, I’m planning to diversify into index funds and other holdings.

All of the stock is subject to long-term capital gains tax and I have enough cash to cover the tax. Would a good strategy be to gradually sell the lots acquired at higher prices (like doing a reverse DCA) and thus reduce the tax bill and possibly reap some gains on the unsold stock or is there a better strategy to follow?