Does it make sense to rebalance your stock if its growing?

Rebalance and diversify. For RSUs. there is too much concentration of risk since your employment (thus direct income) and rsu are dependent on the performance of your company. Typically when the company stocks are performing poorly, layoffs follow shortly in big tech as we have seen over the last couple of years

Personally, I sell half of my newly vested rsu and buy global index funds with it on every vesting. I do that to diversify, and i dont sell fully so that I can realize potential gain in the future. This depends on how you value your campany stock, and you can decide how much to keep. Occasionally, when the RSU hits my target price, I sell more to take profit as well.

I dont think there is a right answer to it. It depends on the company, and the period of your grant. Keeping all your RSU can give you the highest return, or the lowest and you will feel like an idiot. I think a more balanced approach is the right way to go and reduce the burden on you when the market moves drastically

You say you are willing to take the risk, so don't rebalance. Those who rebalance are not comfortable with the risk. That's all there is to it.

Why need to rebalance when you mentioned you can take the risk? But you do need to think of an exit plan,

Remember that past growth performances are not indicative of future performance - this applies to both the stock you have and the S&P 500 (and any other stocks/index).

Review the stock on its own merits - what can you expect of its future growth, based on each of its current business units? What is the expected future growth vs the competition?

That would give you your answer.

If this sounds too troublesome or difficult, it's better to stick to index investing.

While its true rebalancing is the “safer” choice, a counterpoint to note is to not underestimate compounding effects. If you’re willing to take the risk, letting a winner compound can lead to parabolic returns

Risk is inherently something that happens in the future. It literally doesn't make any logical sense to rebalance your portfolio to reduce risk when the consequence has already occured.

Risk management is got to do with the future, not the present or the past. Your past gains has nothing to do with risk management, same as your past losses.

I always sell out my RSUs. But my colleague who kept his since day one is having much higher returns than me

Let your winners run, and cut your losers fast

If you have confidence in your company and the company is currently doing very well with good prospect, in this case, do not diversify too much.

If I did not sell my company given RSU, I could have accumulated a million USD Worth of rsu(5 years reference).

Diversifying is good for reducing risks but bad for returns relatively speaking. If you can focus on a winner, you will get far greater returns than being spread out everywhere. But you have to have the risk appetite.

There is a theory call coffee-can theory which goes against the principal of risk rebalancing and show exceptional results.

I think u mean u r ok w the volatility. The risk shld be urself, why are u seeking to rebalance? At this time or just wanna take and lock profits? Then again u ok w the volatility, shld let the winning horse continue running.

The fact that it is growing is why u shld rebalance? If it’s not growing den why need to rebalance?

The 1st stock I ever bought was NVDA. Watched it x5 before I sold. After that I’ve tried balanced lah, barbell lah, still made less than had I just done nothing.

So now my portfolio is NVDA & NVDL mainly, with NVDA approaching x2. But now I’m looking at my hedge AMD holdings like it’s the special needs cousin.

Moral of the story is that I should just all in NVDA.

yes

I tend to rebalance stocks that I invested in just to try my luck or because I followed the hype, such as Luckin Coffee, which I invested in because I saw it near my office area, not because I studied it.

However, for indiv stocks like Nvidia and KO etc, I tend to hold longer even when they are flying high.

no one can answer except if you higher a financial adviser. all depends on your personal risk appetite and ability to take risk.

How much is that as a proportion of total net worth? If not high and you have conviction nothing wrong with holding. Example if port size is 500k but total net worth 3m, there is sufficient wealth stability.

Don't rebalance for the sake of it. 

You will also hear a lot of folks saying to buy etfs and not individual stocks. That's because it's what works for them or they fail to successfully stock pick.