Please ensure Javascript is enabled for purposes of website accessibility

Ask a Fool: Should I Sell Disney and Buy InvenSense?

By Jason Moser – Feb 26, 2014 at 7:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors should always remember to stay conscious of the risk involved with under-diversification.

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "I have a large investment in Disney (DIS -0.01%) and InvenSense (INVN). Should I sell Disney at $82 and reinvest proceeds into InvenSense? If I do this I will have 2,900 shares of InvenSense hoping for a upward movement."

As a guideline, Jason believes that you don't want to overweight your portfolio in any investment. No matter how much you may like the company and its prospects, investors need to expect the unexpected, and diversity helps prepare you for just that. Because small caps are inherently riskier because of their size, investors should plan on owning a number of small caps to spread that risk out.

Jason Moser owns shares of Walt Disney. The Motley Fool recommends and owns shares of InvenSense and Walt Disney. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Walt Disney Stock Quote
Walt Disney
DIS
$98.87 (-0.01%) $0.01
InvenSense, Inc. Stock Quote
InvenSense, Inc.
INVN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
360%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.