Hi folks,
I get compensated in stock from a big 5 tech company (FAANG) with a high alpha. Historically, I sell every vest and immediately diversify into the S&P.
However, the recent downturns have impacted my upcoming compensation significantly. If I diversify now, I will have accumulated excess losses on the way down due to the high alpha, and be restricting myself from excess growth on the way up.
So - do I perform this diversification, or to wait for losses to recover before diversifying?
Sincerely,
t0s
I get compensated in stock from a big 5 tech company (FAANG) with a high alpha. Historically, I sell every vest and immediately diversify into the S&P.
However, the recent downturns have impacted my upcoming compensation significantly. If I diversify now, I will have accumulated excess losses on the way down due to the high alpha, and be restricting myself from excess growth on the way up.
So - do I perform this diversification, or to wait for losses to recover before diversifying?
Sincerely,
t0s
Statistics: Posted by t0s — Tue Mar 11, 2025 1:23 am