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Question about holding onto a stock

Posted on 2/9/24 at 10:29 am
Posted by Ballstein32
Member since May 2020
365 posts
Posted on 2/9/24 at 10:29 am
I bought some Microsoft stock when it was at $212 (only 4 shares, nothing special). It's hitting all time highs at around $420 now.

Now that it's almost doubled, should I go ahead and sell it and drop that into something that could potentially have more growth at this stage?

4 shares isn't much, and the dividend that comes with it amounts to next to nothing.

This is in my Roth.
Posted by castorinho
13623 posts
Member since Nov 2010
82024 posts
Posted on 2/9/24 at 11:02 am to
Was going to ask for more info and all that jazz, but it's 2 grand. Just let it ride.
Posted by auisssa
Member since Feb 2010
4174 posts
Posted on 2/9/24 at 2:04 pm to
shite, I could sell MSFT and turn that $2000 into $145 in a week.
Posted by makersmark1
earth
Member since Oct 2011
15802 posts
Posted on 2/9/24 at 2:25 pm to
“The best holding period is forever.”

Warren Buffett

Selling winners is not the best way to make money. Prune losers. Let winners run.

Posted by Crescent Connection
Lafayette/Nola
Member since Jun 2008
2021 posts
Posted on 2/9/24 at 2:28 pm to
The prudent thing is to hold on till retirement.

But if you want something that COULD potentially give you higher returns, then look into CRSP, PLTR, AMD, ARM, or COST.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2132 posts
Posted on 2/9/24 at 5:35 pm to
In Roth so no tax. In that case I would probably sell but I am a believer in index funds because I dont think I have any special ability to beat the market consistently.
Posted by OhioLSUfan
Columbus, OH
Member since Oct 2007
1285 posts
Posted on 2/9/24 at 5:35 pm to
I’d hold, more than one talking head has said this is the year of MnM. Plus they are so intertwined into everything even if a better competitor would pop up today, it’s take years to replace M/S.
Posted by StreamsOfWhiskey
The Woodlands, TX
Member since Jun 2013
581 posts
Posted on 2/9/24 at 5:40 pm to
I’ve been holding MSFT now for several years and it has given me 25 percent plus annualized returns. I intend to hang on to it for a good long while. I’m also holding AAPL, MELI, CDNS, MA, AXON, LRCX, NVDA, CRWD, AMZN and have been for at least a few years. The only one I’ve set a trailing stop on is LAM Research.

That written, I’ve also got some losers, too. If these are good companies, I agree with the advice to let your winners run.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41182 posts
Posted on 2/9/24 at 7:03 pm to
I started buying at $160, still holding
Posted by FieldEngineer
Member since Jan 2015
2123 posts
Posted on 2/9/24 at 9:54 pm to
quote:

Microsoft


They’re about to make a ton of cash with the AI hype. They are essentially first to market. They also have their scheduled buybacks, so I see no reason why the stock would decrease any time soon.
Posted by FreddieMac
Baton Rouge
Member since Jun 2010
20990 posts
Posted on 2/10/24 at 8:24 am to
quote:

4 shares isn't much, and the dividend that comes with it amounts to next to nothing.


This is how I handle my Roth; which I consider my Social Security replacement.

I have an unorthdox approach that works for me so far. I buy stocks like MSFT, Google, Meta and buy in what I call pods of X dollars. My idea of pods are no more than 5% of the total portfolio value. So I never risk more than 5% of the portfolio on any given investment. I diversify those pods across growth/dividend or growth stocks by industries. When a pod hits at least 25% growth value, I sell the profits and put it into an index fund that produces a dividend funds like JEPI, JEPQ, Schwab, etc. I drip all dividends. As the portfolio grows the pod size grows and produces larger profit payouts to invest back into dividend focused index funds.

But there is nothing wrong with just holding on to a winning stock like Microsoft. 10 years from now that value could double again.

This post was edited on 2/10/24 at 8:26 am
Posted by TakingStock
Member since Jun 2009
6091 posts
Posted on 2/10/24 at 8:53 am to
Never sell. You’ll look back in 20-30 years and be very thankful. Ask Warren Buffett.
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