I'm a small beginner investor with less than 50k portfolio. One stock I hold has grown substantially than everything else and makes up 46% of my portfolio, but it is expected to keep growing and has only recently really been getting into the media. The PE ratio is also now high.
Most analysts are saying buy on this stock, so I'm tempted to hold. However, the stock is in the AIM market which is more risky than the main London market.
I could sell all, sell 75% to get it to a similar level as other holdings, or selling 50% which is how much it has gone up, or any suggestions on other strategy?
I decided to sell 33% of the book cost (whilst the share is still at the top of break out - although it is still going up), which brought the book cost near to some of my other holdings. And I put a low stop loss on if the stock drops in value by about 20% to sell an amount which covers the rest of the book cost.
My thinking is that this gives me some profit now at a relatively bouyant point, to give me some cash funds to rebalance /(or hold some cash). At the same time it catches any last resort drastic drops. It leaves me with (with my modest beginner portfolio) a decent holding to hopefully continue to benefit.
Ultimately I am a huge fan of this stock (it is games dev market related). I'm a developer and gamer myself, and I like what they do, like the attitude of the CEO and think there is a lot of sense in consolidating this market.
I hold a diversified portfolio and I started investing just over a year ago.