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How much Microsoft is too much in a Roth IRA

J
Jun 24, 2026 · 17:55

I'm constantly seeing posts about Microsoft, and while I'm not super well-versed in stock fundamentals, it just seems like such a strong company to me. They have growing revenue, a massive business, and a lot of products and services that people rely on every day.

Since the stock has been down quite a bit this year, I've been buying more shares, both because of recommendations I've seen and because I genuinely think it's a great company. To me, it feels like a solid buying opportunity, especially for the long term. I'm buying it in my Roth IRA.

I know a lot of people recommend not having more than 5% of your portfolio in any individual stock, but Microsoft is currently more than 5% of mine. Do you think that's a poor decision, or is Microsoft one of those companies where it's reasonable to have a larger allocation? Curious to hear thoughts.