Quote:
Originally Posted by WSSix
So, I'm sort of in the middle of a dilemma and am unsure what to do. Since I used to work for Halliburton and they had a fantastic ESPP set up, I took full advantage of it and now have a very lopsided portfolio. I'm not at all worried about that honestly. I took advantage of an opportunity that was only available to me because I was an employee at the time and it has paid off greatly.
Until this current and unforeseen drop in oil prices, my attitude was to simply let the shares sit there and make money. I no longer get the discount as an employee, and I'm very lopsided so I don't need to invest any more in that position were my thoughts. I'm now questioning those thoughts because the stock has dropped so much in value. My dilemma is do I take advantage of what is, I believe, a great buying opportunity and continue to make my portfolio lopsided, or do I just stay patient, let my shares ride, and continue to work towards a more balanced portfolio? My cost basis is such that I'm still sitting pretty with great returns right now even with the price down so much.
Thoughts? Opinions?
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If it was me I would definitely diversify for the exact reason you are discussing. An unforeseen event has significantly impacted your major holding. I had a friend that worked at WorldCom several years ago. He used to brag to me how much money he was accumulating in his retirement account. I don't know if you were following the market when WorldCom went bankrupt, but his entire account evaporated because he had all of his money in one stock. The same thing happened to people at Enron.