I sold all of my Time Warner stock in my 401K. It last closed at $17.34 per share; around 12% over last year’s price. It’s high value for the past year was $19.30, and the low value was $15.28. The stock hasn’t tanked. However, Time Warner has still consistently performed worse than the S&P.;
I still have a ton of Time Warner stock options. All but the last two option grants are well under water, and my most recent grant of stock is exactly even. If I were to exercise and sell all of my vested stock options, I would be in the hole $20,000. Stock options are a lot more enjoyable when your stock is going up.
I’ve readjusted my stock and bond selections in my 401K. Rather than randomly picking various mutual funds, I actually did research. The largest chunks of money are allocated to an index fund and a couple of bond funds. The rest of the money is split between various stock mutual funds. It’s a fairly aggressive portfolio, but I think it is the correct allocation for my place in life.