MW I invested $4,000 in 2020. It's now worth $55,000 with a 65% concentration in Nvidia. What now?

By Quentin Fottrell

'My hope is that this account keeps generating returns to cover my monthly expenses, which are about $1,200'

Dear Quentin,

I have a unique economic situation and would like advice.

I've been disabled from anorexia and postural orthostatic tachycardia syndrome for the past five years. I started those five years homeless, but I was given a $5,000 gift to stay afloat from the same lady who paid for my college scholarship.

I had $3,000 when the stock market crashed in 2020. I immediately invested that in stocks, letting myself become homeless (sleeping in the local park by a gym where I could shower) again in order to save up money for almost a year. I'm not homeless anymore.

'I've been disabled from anorexia and postural orthostatic tachycardia syndrome for the past five years.'

Now, that account is worth $55,000, with a 65% concentration in Nvidia $(NVDA)$, which was my first stock buy, then a 20% concentration in Novo Nordisk $(NVO)$ and Eli Lilly $(LLY)$ stock, with 15% diversified into the SPDR S&P 500 ETF Trust SSSPF , Invesco $(IVZ)$, Taiwan Semiconductor (TW:2330) and a handful of other stocks.

Now, I want to know: What should I do with this? I've been thinking about long-term goals and short-term goals. My hope is that this account keeps generating returns to cover my monthly expenses, which are about $1,200.

I've thought about selling stock and putting it into a CD instead, or the possibility of transferring this stock into a retirement account for myself, but I don't want to lock up too much of the money in case of an emergency.

Pandemic Investor

Related: 'God works in mysterious ways': I became a Nvidia millionaire playing 'World of Warcraft.' Am I smart - or just lucky?

Dear Investor,

Your mental and emotional health should be your No. 1 priority. Anorexia, as you know, is a mental-health condition that has the second-highest fatality rate, second only to opioid addiction, so I hope that you are getting the help and support that you need every day.

You have had an astonishing return in just five years. I'm not an investment columnist, so I'm not going to tell you what you should do with your money. But if you're happy with your current allocation and have enough money to live on, stay the course.

An emergency fund of at least six months of expenses is important, especially with recession fears increasing. You now have the time to put in place a support network of friends and family and, I hope, finances that will help prevent you from becoming homeless again.

Your strategy, while successful given your modest initial capital investment, is also risky, in that you are heavily weighted in a few stocks, particularly Nvidia. There's a long road ahead for AI and that stock, but the last couple of days have been an eye-opener.

We get through every day by - in theory, at least - doing something that gives us emotional and spiritual nourishment, and hope.

Arguably, investors did not learn anything new from President Donald Trump's Sunday comments on Fox News. When asked about the potential of his tariffs to trigger a recession, he said he could not guarantee avoiding one. But they appear to have spooked the market.

Nvidia's stock, along with the rest of the "Magnificent Seven," stocks have been "brutalized" by the stock market in recent days, according to a note published late Monday by Bernstein analyst Stacy Rasgon. He did, however, say Nvidia shares still trade at an attractive valuation.

The other Magnificent Seven stocks - Alphabet $(GOOGL)$, Amazon $(AMZN)$, Apple $(AAPL)$, Meta $(META)$, Microsoft $(MSFT)$ and Tesla $(TSLA)$, - collectively lost $759 billion in market cap Monday.

Monday, for what it's worth, was the worst day on Wall Street this year and, no doubt, you were experiencing the kind of anxiety that others who are similarly tech-heavy in their portfolios. But you've also had a good run these past five years on the stock market, with a few bumps along the way.

Related: Nvidia's stock is cheap by this metric. Can next week's GTC get it going again?

Investment goals

Back to your question: CDs are still getting an OK return with interest rates now around 4%. High-yield savings accounts will also give you liquidity, as you can take your money out whenever you need it, but the interest rate can change based on the Federal Reserve's decisions.

Your returns are a great start. But they won't get you far with $1,200 a month, but this success and your long-term goal to provide passive income in the years ahead are commendable.

It's important to have goals, whether it's buying a house, finding a nice place to rent, going to sleep at night knowing that you have investments that will grow over the next 5 or 10 years, or looking forward to reading a book by your favorite author. It's all part of the same game.

We get through every day by - in theory, at least - doing something that gives us emotional and spiritual nourishment, and hope. It could be calling a friend and hearing a kind word or being that friend who picks up the phone to ask how someone else is doing.

You don't mention having any debt and, despite your financial struggles, that is something to celebrate each day. Americans carried an average personal debt of $21,800 last year, lower than the $29,800 in 2019, according to a survey from Northwestern Mutual.

There's no magic formula to the stock market or life: maintaining as much diversification as possible; adding a little bit every month, if you can.

Looking ahead, health savings accounts (HSA) allow you to save money in a tax-advantaged account and withdraw it tax-free for qualified medical expenses. You can also use that cash to reduce your out-of-pocket medical expenses in retirement and help build a nest egg.

"There's no one magic number for how much you need to start investing, or how much you should add each month, because the right number varies depending on your income, budget, and what other financial priorities you're juggling," Fidelity Investments says.

"Investing a little bit every month and gradually increasing that amount over time, as you get more comfortable, is a fine way to go," Fidelity adds. It suggests aiming to save an amount equal to 15% of your income toward retirement each year (including any employer match).

There's no magic formula to the stock market or life: maintaining as much diversification as possible; adding a little bit every month, if you can; keeping your eye on the horizon so you can sleep well at night and know that each day, things will get even a little bit better.

For anyone who is dealing with an eating disorder or believes a loved one needs help and support, you can contact the National Eating Disorders Helpline at (800) 931-2237 or text "NEDA" to 741741 for immediate support.

For people with an eating disorder and/or those thinking about suicide, you can call or text 988 to reach the 988 Suicide & Crisis Lifeline, which is available 24 hours a day, seven days a week. Or use the Lifeline Chat. Services are free and confidential.

Related: 'This money has been a life changer' - a woman living on the poverty line inherited $150K and shares her financial plan

More columns from Quentin Fottrell:

'It's awkward to give advice to wealthy people': My wife, 50, has terminal cancer. Our estate is worth $18 million. How do we prepare?

My second wife is younger than me. If I die first, how do I make sure she doesn't cut off my children?

It was obvious I wasn't in Kansas anymore': My local bank has no cashiers - and declined to accept my money. What's going on?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter.

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-Quentin Fottrell

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March 11, 2025 10:27 ET (14:27 GMT)

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