I'm in my early 50s with a net worth of $8m and 65% of my money is in one single stock - should I diversify?

Legendary Fidelity Magellan fund manager Peter Lynch attributed his success to finding stocks that he dubbed 'Multi-Baggers' and 'Ten-Baggers.' This refers to stocks that return 100% to 1,000% or more profit. In our current market, Nvidia would fit this category for many portfolios. However, the owner of such stocks often hesitates to sell, risking a lack of diversification as the portfolio becomes excessively reliant on a single stock's performance.

The case of a recently retired single individual with a net worth of $8 million, where $5.2 million (65%) is locked in a single stock, highlights the dilemma. Despite the substantial overall financial success, the individual acknowledges gaps in their financial strategy and is encouraged to consider diversification sooner rather than later, especially given the realities of market volatility and potential future expenses.

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