‘The company is a household name': My husband’s tech firm gave him stock. It's now 40% of our net worth. Should we diversify or hold?

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‘I’m 44 and want to retire in 10 years’: My husband’s tech firm gave him stock. It’s now 40% of our net worth. Should we diversify or hold?

He was granted this stock during his five years employed with a tech company. It wasn’t worth much at the time. Now the company is a household name.

When we talk with our financial advisers they have brought up diversification, but it is a non-starter for my husband.What would you recommend in this situation?You can’t win without losing, or lose without winning. You diversify and the stock continues to climb Amazon- or Tesla-style, or you hold 100% of the stock and it takes a nosedive along with an increasingly volatile stock market.

People bring their own experiences: If someone invested in Enron and their portfolio blew up, they’re going to plead with you to diversify ASAP. If they were an early Amazon employee, they’ll be smiling from their San Francisco manse.Just because you use a product or service does not mean you should hold that stock, and emotional involvement does not equal success. So do your own due diligence on the stock and analyst reports, and familiarize yourself with competitors.

One more tale, this time from the Moneyist Facebook group: “My mother’s friend had stock her husband earned and he wouldn’t diversify. The company was a household name. They had a 40-room house in Denver. He died. The company no longer exists.”You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter.

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Diversify , look at Valeant Pharma 😎

sell most of it and get into VTI if you're that close to retiring

Which tech firm is it?

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