Key insights
- The user is seeking strategies to reduce exposure to potentially overvalued AI companies within their VOO portfolio while minimizing the realization of unrealized gains. This reflects a concern about speculative valuations in emerging tech sectors impacting broad market index holdings.
I am ok with MSFT, AMZN, GOOGL in the VOO index. I am less ok with Tesla (380 P/E) I am not ok with all the new AI companies. Because these are not valued fairly. And I cannot convince myself that SpaceX will have revenue 1.7T. There is just not enough cash in the world to pay 1.7T in services.
So, the question is: What strategy can be used to exclude new AI companies (Anthropic, Open AI, Space X) from this VOO positions? Obviously, I have accumulated this position for quite some time and there is unrealized gain. I would be very reluctant to sell it and release all the gain right now. Perhaps I can see the part on the 401K and leave the brokerage part as it.