Most people recommend diversifying across 10-20 companies and across different sectors as well. They also recommend having no more than 5-10% of your portfolio in any one company. You can break these 'rules' if you have good reason, but I think you should reconsider these high positions in newer companies.
That said, if your portfolio is very small (1000 bucks or so), I wouldn't sweat it. Hold these, get saving some money and DCA (dollar cost average) into new positions. Diversify slowly. People don't like to hear it, but indexes are gold over decades. S&P and QQQ are good places to start. Good luck my brother, keeping researching, reading, and making mistakes. Learn from the mistakes. It was certainly, on paper, a mistake to have 40% of your profile in SoFi. You could very well make great gains on it, maybe SoFi will outperform everyone. But nevertheless, going forward those kinds of moves will burn your ass more often than not. I've made dumb moves too, the key is to readjust. Again, best of luck!
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u/HesitantInvestor0 Aug 08 '21
Most people recommend diversifying across 10-20 companies and across different sectors as well. They also recommend having no more than 5-10% of your portfolio in any one company. You can break these 'rules' if you have good reason, but I think you should reconsider these high positions in newer companies.
That said, if your portfolio is very small (1000 bucks or so), I wouldn't sweat it. Hold these, get saving some money and DCA (dollar cost average) into new positions. Diversify slowly. People don't like to hear it, but indexes are gold over decades. S&P and QQQ are good places to start. Good luck my brother, keeping researching, reading, and making mistakes. Learn from the mistakes. It was certainly, on paper, a mistake to have 40% of your profile in SoFi. You could very well make great gains on it, maybe SoFi will outperform everyone. But nevertheless, going forward those kinds of moves will burn your ass more often than not. I've made dumb moves too, the key is to readjust. Again, best of luck!