Strategy for selling single stock

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van_sun_38
Posts: 46
Joined: Tue Apr 07, 2020 12:56 pm

Strategy for selling single stock

Post by van_sun_38 » Fri May 22, 2020 4:22 pm

I used to work for airline and got their stocks through ESPP. I accumulated quite a portion back then and forgot to sell them :oops:
Now the stocks are tanking. I have a healthy EF and don't need cash at this moment but I am still interested in selling the stock to buy index fund. Plus the chance of bankruptcy.. What your recommendation in strategy to selling the stock?
1) Should I just dumb all the shares?
2) If not, how should I divide up and sell them? Sell the highest basis cost first?
3) Should I keep them and wait for a slow recovery? Like I said, I am no rush for cash

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FiveK
Posts: 8963
Joined: Sun Mar 16, 2014 2:43 pm

Re: Strategy for selling single stock

Post by FiveK » Fri May 22, 2020 4:36 pm

1&3) Up to you. If your strategy is to move from individual stocks to index funds, this could be a good time to do so.

2) If you don't want to sell them all, that is a good way to start.

If you think the individual stock gains going forward from now will exceed index fund gains, you could keep the stock. Of course, if you really think that then the logical conclusion is to sell the index funds and buy more stock....

delamer
Posts: 9951
Joined: Tue Feb 08, 2011 6:13 pm

Re: Strategy for selling single stock

Post by delamer » Fri May 22, 2020 4:41 pm

Are the stocks part of your retirement savings or for some other purpose?

If they are for retirement, how close are you?

annu
Posts: 590
Joined: Mon Nov 04, 2019 7:55 pm

Re: Strategy for selling single stock

Post by annu » Fri May 22, 2020 5:30 pm

I sold all that were long term, and added few more to round up to and even number from short term :sharebeer

Tax implication is only thing I was looking at.

Topic Author
van_sun_38
Posts: 46
Joined: Tue Apr 07, 2020 12:56 pm

Re: Strategy for selling single stock

Post by van_sun_38 » Fri May 22, 2020 9:31 pm

delamer wrote:
Fri May 22, 2020 4:41 pm
Are the stocks part of your retirement savings or for some other purpose?

If they are for retirement, how close are you?
They are not for retirement. They are more like "fun fund" but now not so "fun" anymore :shock: I am in mid 30s so still long way until retirement.

dru808
Posts: 829
Joined: Sat Oct 15, 2011 2:42 pm
Location: mid pac

Re: Strategy for selling single stock

Post by dru808 » Fri May 22, 2020 9:35 pm

van_sun_38 wrote:
Fri May 22, 2020 9:31 pm
delamer wrote:
Fri May 22, 2020 4:41 pm
Are the stocks part of your retirement savings or for some other purpose?

If they are for retirement, how close are you?
They are not for retirement. They are more like "fun fund" but now not so "fun" anymore :shock: I am in mid 30s so still long way until retirement.
Did you really forget to sell them or were you riding the bull and now regret not selling? you do say “fun money”
60% US equity | 25% International equity | 15% US Treasury bonds

delamer
Posts: 9951
Joined: Tue Feb 08, 2011 6:13 pm

Re: Strategy for selling single stock

Post by delamer » Fri May 22, 2020 10:15 pm

If it’s fun money, then you can gamble that the stock recovers.

It would be different if it was a core part of your retirement funding.

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