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by hn_throwaway_99 2825 days ago
> More than 1/4 of my net worth, and over 1/2 of my equity holdings are in TSLA.

No offense, but why???? It is crazy to have this much of your meet worth in ANY single company. I can only hope that you are independently wealthy and if TSLA went bankrupt (of which there is a very large possibility) that you'd be ok.

2 comments

Interestingly, I was hoping the OP is a poor college student for whom 1/4 of their net worth isn't all that much money...
Well arguably it would be even worse than.

I think it's save to say that the relative amount of money lost is more important than the absolute money lost for most people

If his net worth is $1k, with $500 in cash and $250 in Tesla that makes perfect sense.

Under 35s median net worth is $4k

https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com...

If your earnings are likely to go up dramatically later, then it's fine to take large risks with the money you can invest now. Unless you have large gains, it's not enough money to make much difference anyway.

This assumes of course that you've got the basics covered, like being out of debt and having some kind of emergency backup (savings, insurance, well-off parents, etc).

The only way this could make sense would be if OP was an employee recieving stock they are not yet allowed to sell.