r/stocks
Should I trim my AMD position? Looking for thoughts on this portfolio reallocation
Trimming AMD from 50% to 12.5% due to volatility, reallocating to SMH ETF and non-semi stocks while remaining bullish on the core thesis.
- Investment thesis remains intact and author is still bullish.
- No capital gains tax implications if trimmed at current levels.
- Extreme recent volatility causing mental stress and unhealthy obsession with daily price checks.
- Position concentration has ballooned to over 50%, posing portfolio construction risks.
I've been invested in AMD for close to 5 years now. It started the year at roughly 25% of my portfolio, but it has since ballooned to over 50%.
My thesis is still intact and I remain bullish on AMD. That said, I've developed an unhealthy obsession with checking its share price every day since it has never felt this volatile before, and the concentration is starting to get to me mentally.
There's no capital gains tax if I trim here, so the question is purely about portfolio construction.
Here's the reallocation I'm considering:
Before: AMD \~50% of portfolio
After:
- AMD: \~12.5% of portfolio
- SMH.L ETF: \~12.5% of portfolio (London-listed version of SMH; AMD carries roughly 12% weighting in the fund based on latest holdings)
- Non-semiconductor stock(s): \~25% of portfolio
The market has trimmed it for you.
lol
for me it's pretty simple. In a year from now, will there be more or less demand for CPUS and a lesser extent, gpus?
I think yes. Aped in on Friday.
There might be a bigger shortage for CPUs then GPUs in coming years
Took my seed money out at 520 before it went up to 550 and crashed Friday. Letting the rest ride.
I think AMD will hit 1k in a few years
Sell covered calls
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