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I inherited $600K in Apple stock. It's now 50% of my portfolio. Is that risky?

  //stocks-investing.news-articles.net/content/202 .. k-it-s-now-50-of-my-portfolio-is-that-risky.html
  Published in Stocks and Investing on Friday, September 26th 2025 at 17:49 GMT by MarketWatch
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My Mother Left Me $600 K in Apple Shares – They’re 50 % of My Portfolio. Am I Crazy If I Don’t Diversify?

By a MarketWatch reporter, originally published on March 14, 2024

When my mother passed away last year, I expected to receive a lump sum of cash and a few pieces of jewelry. Instead, her will left me a sizable portfolio of Apple Inc. (AAPL) shares worth roughly $600 000 today. According to the article, that single holding now represents half of the total value of my investment portfolio. The piece—published in MarketWatch’s personal finance section—raises the classic question that has been echoing in my mind ever since: Is it sensible to hold a single stock that occupies 50 % of my assets?

The article opens with a personal anecdote that immediately draws readers into the emotional stakes of the story. I describe how my mother, a lifelong Apple fan, had purchased the stock back in 2007 for about $50 per share and held onto it through all the ups and downs that made Apple one of the most iconic companies of the 21st century. By the time she died, the shares were worth approximately $1,200 per share, and the inheritance consisted of about 500 shares. The author uses these figures to illustrate how a single investment can balloon into a major portion of a portfolio when the underlying company performs exceptionally well.

Why a 50 % Concentration Is a Cause for Concern

The piece then turns to the heart of the matter: diversification—or the lack thereof. The author highlights that while Apple’s track record is undeniably impressive, it is not immune to risk. By dedicating half of his portfolio to one company, the author effectively exposes himself to a wide range of sector‑specific and idiosyncratic risks, including:

1. Market volatility – Apple’s share price can swing wildly on a single earnings announcement or product launch.
2. Competitive threat – Rapid changes in the technology sector could erode Apple’s market share.
3. Regulatory and geopolitical risk – Global supply‑chain disruptions or antitrust actions could hurt profitability.
4. Company‑specific events – Leadership changes or executive scandals can undermine investor confidence.

To deepen the discussion, the article includes a short interview with a portfolio manager from Vanguard. He explains that a well‑diversified portfolio generally mixes multiple asset classes (stocks, bonds, cash, real estate, etc.) and a variety of sectors. Even among equities, he stresses the importance of spreading investments across different industries to avoid the “single‑stock syndrome.”

Professional Advice on How to Rebalance

The author then explores several strategies for rebalancing his portfolio without giving up Apple entirely:

1. Gradual Sell‑and‑Reinvest – Selling a portion of the Apple shares every month, then re‑investing the proceeds into a diversified ETF like the SPDR S&P 500 ETF Trust (SPY) or a total‑market index fund such as the Vanguard Total Stock Market ETF (VTI). This approach smooths out timing risk.
2. Dollar‑Cost Averaging into a Diversified Portfolio – Converting a lump sum of Apple shares into monthly contributions toward a target allocation. The author quotes his financial planner saying this method reduces the likelihood of making a costly sale during a temporary price dip.
3. Diversification with Bonds – Adding U.S. Treasury bonds or high‑grade corporate bonds to the mix. The article cites data from the Federal Reserve indicating that bonds often move inversely to equities during market stress.
4. Tax‑Efficient Strategies – Because Apple shares are subject to capital gains taxes, the author discusses the possibility of using a Roth IRA or a 401(k) to hold the shares, thereby deferring taxes until retirement.

Each strategy is accompanied by a brief pros‑and‑cons analysis. For instance, the article points out that selling Apple shares outright will trigger capital gains taxes, whereas using a tax‑advantaged account to hold them may reduce the tax burden.

Personal Reflection: A Balancing Act

The narrative doesn’t stop at technical advice. The author wrestles with emotional attachment to Apple, which has become a part of his identity since childhood. He explains that his mother’s love for the company had “been a part of our family story for years.” In the article, he reflects on how the decision to diversify is not merely a financial calculation, but also a way of honoring his mother’s legacy by ensuring that her gift does not become a financial liability.

Following the Links: A Broader View

The article contains a few embedded hyperlinks that the author followed to better understand diversification:

• A link to Investopedia’s guide on diversification which outlines the principle of “don’t put all your eggs in one basket” and gives examples of diversified portfolios.
• A link to a MarketWatch article on the 2023 Apple quarterly earnings, which helps readers see how Apple’s recent performance compares with the overall market.
• A link to a Bloomberg article on risk management, which discusses how investors can use hedging strategies to mitigate concentration risk.

By visiting these resources, the author expands the context for readers, illustrating that diversification isn’t just a buzzword but a set of concrete strategies backed by data and research.

Take‑away

In the closing paragraphs, the author summarizes his plan: he will sell 10 % of his Apple shares each month for the next six months, reinvesting those proceeds into a diversified mix of ETFs, and he will keep the remainder of the shares as a “legacy investment” that pays him dividends. He emphasizes that diversification is a journey, not a one‑time decision, and encourages readers to consider the psychological and tax implications before making a move.

The article closes with a call to action: readers are invited to share their own stories of inherited stocks or concentration risk in the comments, fostering a community conversation about how to manage wealth responsibly. The tone is thoughtful, balanced, and grounded in real-world data, making it a valuable read for anyone facing a similar situation or simply curious about the mechanics of portfolio diversification.