I want to divest from Tesla, Meta, Amazon

[Snydley]

Hi- Anyone know how to do this without dropping all the "large cap" companies? thanks

[Jluke]

MGV may have companies you want to hold. It’s a value fund from vanguard

you’re basically going to be looking for sector funds if you want to eliminate those in the subject.

[ua_guy]

Agreed, you'll probably need to go sector-specific.

My exposure to these is in my VWUSX fund with holding percentages, Amazon 7.57%, Meta 4.69%, Tesla 3.07%. IMO, not too risky given the rest of my portfolio diversification. If I was convicted on principle to divest of these, there are options.

[disneysteve]

Divesting from 3 of the biggest companies in the world will likely mean avoiding index funds and any funds with a stake in large companies and tech stocks.

No matter how I feel about particular companies and whether or not I choose to do business with them, I’ve never taken it as far as checking all of our funds to see if their stocks are in there. Since we invest in total stock market funds and other broad index funds I figure it’s impossible to avoid them unless I want to abandon index funds and I’m not about to do that.

[ua_guy]

Divesting from 3 of the biggest companies in the world will likely mean avoiding index funds and any funds with a stake in large companies and tech stocks.

No matter how I feel about particular companies and whether or not I choose to do business with them, I’ve never taken it as far as checking all of our funds to see if their stocks are in there. Since we invest in total stock market funds and other broad index funds I figure it’s impossible to avoid them unless I want to abandon index funds and I’m not about to do that.

Europe's largest pension fund dumped Tesla a few weeks ago. That's significant, and other large cap funds in the US could get on board. It's easy to miss investing in one or two of those companies, and if you swap in others from the top 14 largest US companies you can effectively avoid all of them while only having to remove Amazon from the top 5.

Tesla is down 6.34 as of close today. Ouch. The line is the 30-day price history.

[disneysteve]

Europe's largest pension fund dumped Tesla a few weeks ago. That's significant, and other large cap funds in the US could get on board.

Sure but that means choosing actively managed funds which we don’t generally recommend. Indexes are what they are.

[bjl584]

Sector specific, or build your own mutual fund from stocks that you want to invest in.

[Petunia 100]

Sector specific, or build your own mutual fund from stocks that you want to invest in.

I think building my own is the way I would go. Just take a look at the top 25 or so companies in the index, eliminate the ones I wanted to exclude, then buy the rest. Then maybe add a slice of VG's extended market index (or similar) for mid and small exposure.

[Snydley]

I think building my own is the way I would go. Just take a look at the top 25 or so companies in the index, eliminate the ones I wanted to exclude, then buy the rest. Then maybe add a slice of VG's extended market index (or similar) for mid and small exposure.

I don't know how to do this. Naive question- but can I just buy stocks from individual companies using my Fidelity account?

[disneysteve]

I don't know how to do this. Naive question- but can I just buy stocks from individual companies using my Fidelity account?

Yes. As long as it's a brokerage account, you can buy individual stocks. Most discount brokerages have eliminated commissions. I know Vanguard has; Fidelity probably has, too. Some brokerages, like Schwab, even allow you to buy fractional shares now for certain stocks. That way if the share price is too high, you can buy less than one share.

Fidelity probably has a help screen that walks you through the process of purchasing stocks. It should be pretty straightforward. I know it is with Vanguard.

[Jluke]

Is this a 401k, IRA, or taxable account?

there might be restrictions on buying individual companies if a 401k.

the enemy of a good plan is the idea of a perfect plan.

you might be better off staying the course.

Especially if you’re asking how to buy individual stocks. you won’t get enough diversification buying individual stocks.

[LivingAlmostLarge]

way to hard to divest if unless you dump VTI and VOO and simple index funds. I buy index and it's never going to happen.

[Snydley]

Is this a 401k, IRA, or taxable account?

there might be restrictions on buying individual companies if a 401k.

the enemy of a good plan is the idea of a perfect plan.

you might be better off staying the course.

Especially if you’re asking how to buy individual stocks. you won’t get enough diversification buying individual stocks.

I'm not looking for a perfect plan; I'm thinking hard about what I can live with my $ going towards moving forward.

I could just leave target date funds and mix and match with bonds/international/small and mid cap index funds, right?

[disneysteve]

I'm not looking for a perfect plan; I'm thinking hard about what I can live with my $ going towards moving forward.

I could just leave target date funds and mix and match with bonds/international/small and mid cap index funds, right?

Depending on what type of account this is, you can buy whatever you’d like. In a 401k you’re limited to whatever choices they give you but in an IRA or taxable brokerage you can invest in virtually anything.