If you have S$300,000...

[DevilPlate]

Next time will be $70m in 2030

Ask any crypto bro and they will say sell all and hodl BTC instead.
1BTC will worth 1M in future

“It is daymn Risky to own too little BTC Bro”

 

[cyke69sg]

Ask any crypto bro and they will say sell all and hodl BTC instead.
1BTC will worth 1M in future

I think in another 10 years Bitcoin might be worthless because of quantum computing. Obsolete. Need new security measures.

 

[DevilPlate]

I think in another 10 years Bitcoin might be worthless because of quantum computing. Obsolete. Need new security measures.

Anything is possible Bro

Except death is guaranteed.

 

[cyke69sg]

Anything is possible Bro

Except death is guaranteed.

True.

I have reached the point I got enough money for what I need for rest of my lifespan. Anything more is bonus and is for my kids.

I prefer to diversify.

 

[hellhole]

Why would the likely alternative to a (portion of a) single stock holding be a fixed deposit?

I tend to doubt Broadcom's CEO took the ~US$52 million from his stock sale last week and dropped it in a fixed deposit. Seems very unlikely!

but u must understand TS.. he is an non-risk taker... so putting in the most non risky is probably an FD. hehe

about Broadcom CEO putting money in FD... hey.. when you have millions in the first place and get millions after... FD is for sure the last you think of.. hehhe...

if you only have 1000 dollars... and people give you 100 dollars... likely you will put in the bank... hehe... for me that is for sure... if you put and million to those number ... that 100 million is not going into the bank... hahah.. likely its money you can invest...

 

[dereth]

This is a very good point. It's something that a lot of people either don't realise, or recklessly disregard because their company's doing well, and they end up getting burned—ask anyone who worked at Enron, or anyone who worked at Lehman or Bear and took a chunk of their bonus in the form of locked-up stock.

"Wrong-way risk" is a term of art from credit risk management. When you have a trade on with a counterparty, "wrong-way risk" is the risk that the counterparty will default at the same time that the trade goes your way, so you'll have a profit on the trade but the counterparty won't be there to pay out on it.

My favourite example is that back in 2008, we were barred from buying ISK put options (bets that the Icelandic króna would fall) from Icelandic banks. Our risk department's thinking was that if Iceland really went up the spout, our ISK put options would be worth a ton of money, but we wouldn't be able to collect because the Icelandic banks would have collapsed. Aaaand... guess what happened.

Owning your employer's stock is similar to wrong-way risk; subtly different, but it's close enough for government work. If your employer goes tits-up, you lose your job, so you don't have money coming in any more... and your stock goes to zero as well, so you can't sell the stock to tide you over.

Moral of the story: if your employer has a discount stock-purchase program, take advantage of it —it's free money!—but don't hang onto the stock.

Thanks, @Shiny Things for revisiting my thread and advising again 8 years later.

Sad to see many others who replied have either left HWZ or were banned.

 

[BBCWatcher]

Except death is guaranteed.

And AVGO stock is a U.S. estate taxable asset.

 

[dereth]

No US$400 no sell!

(Your comment on Dec 14, 2024 when price was $224.80)
Sorry for laughing at your comment, thinking it to be a little far-fetched.

It's definitely getting closer now.

 

[dereth]

And AVGO stock is a U.S. estate taxable asset.

I'm well aware of the 40%.

 

[BBCWatcher]

I'm well aware of the 40%.

Never as much as 40% effective, although it could be close.

 

[CrashWire]

I tend to doubt Broadcom's CEO took the ~US$52 million from his stock sale last week and dropped it in a fixed deposit. Seems very unlikely!

Most of the money probably went into some kind of irrevocable trust or donor-advised fund for tax planning, before being moved elsewhere.

 

[DevilPlate]

Most of the money probably went into some kind of irrevocable trust or donor-advised fund for tax planning, before being moved elsewhere.

Money is meant to be spent or part of donation (at his old age)

 

[dereth]

Money is meant to be spent or part of donation (at his old age)

Hock donates quite a bit to charity, especially autism research.

He has three children - A daughter and two autistic sons.

 

[Jirachi]

(Your comment on Dec 14, 2024 when price was $224.80)
Sorry for laughing at your comment, thinking it to be a little far-fetched.

It's definitely getting closer now.

I am probably not as big of a player as you for AVGO, but it's becoming sizeable for me. So happy I bought while others chasing GPU (Nvidia)

 

[Shiny Things]

Thanks so much for all the thoughtful advice, everyone. I really appreciate it.

Now, I'd like to ask... if you were in my shoes (size 13), what would you do?
How much would you sell, and where would you allocate the proceeds?

I’d love to hear your specific strategies.

Please tailor it to your own risk appetite. Thank you.

Well, firstly if I were in your shoes, I'd stuff a bunch of newspaper in the toes because I'm a size 10.5 and I'd be tripping over myself all the time.

Seriously though, if it were me, I'd use my favorite risk-management tool: just sell half. "Just sell half" sounds casual, but it works shockingly well in a lot of situations: if you've got a big concentrated position and it's getting a bit worrying, but you're not sure of the right way to handle it, sell half to diversify and let the rest ride. (This is what I did with my Ripple stock: I sold half, and put it into a 60/40 stock-and bond diversified portfolio.)

Because AVGO's listed and it's got an active options market, you can also use options to hedge the remaining half. If you take some of the profits from "just sell half" and spend them on put options covering the remaining half, that'll lock in a "worst-case rate": you have the right to sell the stock at the "strike price" of the option, so if AVGO's stock ends up below the strike price, you can still sell your stock at the strike price and thereby protect yourself from losses below that level. (There are lots of complicated options strategies out there - steer clear of anything more complicated than puts or collars, and if any options strategy tries to offer you "income", run a mile: "income from options" actually means "you're taking on risk somewhere in return for that income, even if you can't see it.)

 

[LWZ]

Hock donates quite a bit to charity, especially autism research.

He has three children - A daughter and two autistic sons.

Interesting. I did some reading about the spectrum, and found that males are on it much more, and higher chance if an older child already has it.

I know a guy who is himself autistic, and has a neurotypical sis and autistic younger bro.

 

[F1ngolf2012]

Well, firstly if I were in your shoes, I'd stuff a bunch of newspaper in the toes because I'm a size 10.5 and I'd be tripping over myself all the time.

Seriously though, if it were me, I'd use my favorite risk-management tool: just sell half. "Just sell half" sounds casual, but it works shockingly well in a lot of situations: if you've got a big concentrated position and it's getting a bit worrying, but you're not sure of the right way to handle it, sell half to diversify and let the rest ride. (This is what I did with my Ripple stock: I sold half, and put it into a 60/40 stock-and bond diversified portfolio.)

Because AVGO's listed and it's got an active options market, you can also use options to hedge the remaining half. If you take some of the profits from "just sell half" and spend them on put options covering the remaining half, that'll lock in a "worst-case rate": you have the right to sell the stock at the "strike price" of the option, so if AVGO's stock ends up below the strike price, you can still sell your stock at the strike price and thereby protect yourself from losses below that level. (There are lots of complicated options strategies out there - steer clear of anything more complicated than puts or collars, and if any options strategy tries to offer you "income", run a mile: "income from options" actually means "you're taking on risk somewhere in return for that income, even if you can't see it.)

Definitely a worthy and practical risk-management approach to seriously consider.

 

[dereth]

 

[F1ngolf2012]

In time of euphoric exuberant volatility, when the rubber hits the road, Hock's ever firm and steady hands will separate the boys from the men and tares from the wheat.

 

[Potent]

True.

I have reached the point I got enough money for what I need for rest of my lifespan. Anything more is bonus and is for my kids.

I prefer to diversify.

How. Much is that amount that is enough