Nvidia's success

When building an investment portfolio made up of concentrated share picks, you must have the courage of your convictions. Get in early, and hold for at least a decade, to get the big returns.

I read today that according to Morgan Stanley analyst, Erik Woodring (pictured), Nvidia is the most under-owned large-cap tech stock. It's the world's most valuable company, but investors don't hold it in line with its S&P 500 weighting, at 7.37% of the index. Its share in the average active institutional portfolio is only 4.2%.

Well, Vestact does not have this problem. We bought Nvidia stock for clients so early, and it's gone up so much, that it's definitely our most "over-owned" stock. It's been a good "problem" to have.

We have customers who bought Nvidia at 58 cents a share in March 2015, and it trades today at $176.37. In our model portfolio, it was acquired at $2.54 in March 2017. That's huge!

If you own a stock that has done that well, you might have to trim the position a little, to rebalance your portfolio.