# What would you do with this stock? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 24, 2024, 7:31pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036 "2024-02-24T19:31:53Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Loach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/loach/32/350_2.png) [@Loach](https://boards.straightdope.com/u/Loach)\ **Post date:** [February 24, 2024, 7:31pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/1 "2024-02-24T19:31:53Z")
I’m not really looking for advice. I do have a financial consultant I use. I’m curious what others would do in this situation. My mother died last year. The estate will be split equally four ways. There is the house and cash. Not enough to be rich but enough to help with my retirement. Also part of the inheritance is stock in one blue chip company. She inherited it from her aunt who never had children. It was split between her and some other family members. That aunt worked for this company and it was part of her compensation. My mother never touched the stock. Over the decades with splits and dividend reinvesting the stock did very well. After a huge pain in the ass converting it and splitting it (thankfully I am not the executor) I should get somewhere between 40-50k. I don’t need to use the money right now for anything. My choices are to convert the stock to cash and put it in my investment account or keep it as stock in that company. There is an emotional component. My mother purposely kept the stock because of its connection with her aunt. Keeping it would be a connection to my mother. ---
**Author:** ![What\_Exit](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/what_exit/32/10652_2.png) [@What\_Exit](https://boards.straightdope.com/u/What_Exit)\ **Post date:** [February 24, 2024, 7:34pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/2 "2024-02-24T19:34:50Z")
I would move it into an Index fund myself. But I say that still sitting on a large chunk of stock from my wife’s grandmother. Though that is a high dividend blue chipper. I did dump a lot of other stocks over the years into other investments. So I guess it depends on the stock. Not all Blue Chips are equal. ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [February 24, 2024, 7:34pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/3 "2024-02-24T19:34:50Z")
I’d liquidate all but one share, and diversify the rest. Single stocks are generally too risky for my blood. If you felt really nostalgic, you could look into getting an actual paper stock share, which would likely be more meaningful framed on the wall than having 100 of them in a digital account. ---
**Author:** ![Loach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/loach/32/350_2.png) [@Loach](https://boards.straightdope.com/u/Loach)\ **Post date:** [February 24, 2024, 8:02pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/4 "2024-02-24T20:02:07Z")
> [@Munch](#): > > I’d liquidate all but one share, and diversify the rest. Single stocks are generally too risky for my blood. If you felt really nostalgic, you could look into getting an actual paper stock share, which would likely be more meaningful framed on the wall than having 100 of them in a digital account. I know past performance is not a guarantee of future results but the fact that around $10,000 in stock grew to about $150,000 makes me less adverse to the risk. ---
**Author:** ![markn\_1](https://avatars.discourse-cdn.com/v4/letter/m/f9ae1b/32.png) [@markn\_1](https://boards.straightdope.com/u/markn_1)\ **Post date:** [February 24, 2024, 8:15pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/5 "2024-02-24T20:15:16Z")
It would depend on my stage of life. In my 30s I would be inclined to keep the stock and hope that it would continue to increase in value. If not, oh well, I’m working and saving money regardless of what the stock does. Now that I’m retired and need to live the rest of my life on my investments, I’d be inclined to move the funds into a safer investment. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [February 24, 2024, 8:21pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/6 "2024-02-24T20:21:54Z")
_Which_ blue-chip company this is might be relevant. Some were stable, reliable performers for decades but stumbled recently (General Motors and General Electric, for example). Also, what percentage of your investments is this? If it’s a small chunk, leaving it as stock may not matter as much as if it’s a bigger piece. ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [February 24, 2024, 9:27pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/7 "2024-02-24T21:27:50Z")
Totally fair. I’m curious - you say your options are keep the stock, or liquidate it to put the money in your investment account. Is it a limited partnership or something that isn’t traded on a regular brokerage platform? Or you just don’t want to move it from its current custodian? ---
**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [February 24, 2024, 9:34pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/8 "2024-02-24T21:34:15Z")
> [@Loach](#): > > stock in one blue chip company I think the concept of a blue chip company is misleading. It might be _somewhat_ less risky than average, but it can still lose 50% of its value next year, or through a fundamental change in the economy eventually even go to zero. ---
**Author:** ![Loach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/loach/32/350_2.png) [@Loach](https://boards.straightdope.com/u/Loach)\ **Post date:** [February 24, 2024, 9:58pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/9 "2024-02-24T21:58:41Z")
> [@Munch](#): > > Totally fair. I’m curious - you say your options are keep the stock, or liquidate it to put the money in your investment account. Is it a limited partnership or something that isn’t traded on a regular brokerage platform? Or you just don’t want to move it from its current custodian? There are two reasons why a simple name transfer isn’t so simple. There were no named beneficiaries. It has to be disbursed as part of the estate. Also the stock was not traded electronically and was never transferred to a brokerage account. It’s still held by the company itself. ---
**Author:** ![China\_Guy](https://avatars.discourse-cdn.com/v4/letter/c/779978/32.png) [@China\_Guy](https://boards.straightdope.com/u/China_Guy)\ **Post date:** [February 25, 2024, 12:51am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/10 "2024-02-25T00:51:14Z")
Hmmmm, sentiment vs risk/return. One question. Is this a publicly traded company or privately held? I would first look at the expected performance of that company moving forward. Is it well positioned for future opportunities and growth, Second, if it looks like to have been a dinosaur back in the day but not positioned for the ice age, then I would liquidate all but a token amount and put the cash out into your regular portfolio. Everyone’s portfolio should be diversified. Nothing wrong with having part of the portfolio dedicated to high risk or even pure speculation. Along with your basic ‘safe’ investments, index funds, etc. So where does the inherited stock fit in your portfolio % breakdown? That could held guide your choice. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [February 25, 2024, 1:10am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/11 "2024-02-25T01:10:58Z")
> [@China\_Guy](#): > > I would first look at the expected performance of that company moving forward. Is it well positioned for future opportunities and growth This. The fact it did well 30 years ago & grew well then is wonderful. But the Q to regularly ask _every_ investment in your portfolio is: > What have you done for me lately? And what more do you intend/expect to do for me soon? If the answers to those questions are good, keep it. If not, not. Other than perhaps some token amount for sentimental purposes. ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [February 25, 2024, 1:16am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/12 "2024-02-25T01:16:55Z")
I would set the emotional connection totally aside and sell it all off, and put the money into whatever other investments you have or consider good. Nowadays even blue-chip stocks may not be blue-chip much longer. ---
**Author:** ![OldOlds](https://avatars.discourse-cdn.com/v4/letter/o/a3d4f5/32.png) [@OldOlds](https://boards.straightdope.com/u/OldOlds)\ **Post date:** [February 25, 2024, 2:03am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/13 "2024-02-25T02:03:23Z")
Is there a reason you don’t want to name the company? ---
**Author:** ![Mean\_Mr.Mustard](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mean_mr.mustard/32/3865_2.png) [@Mean\_Mr.Mustard](https://boards.straightdope.com/u/Mean_Mr.Mustard)\ **Post date:** [February 25, 2024, 2:09am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/14 "2024-02-25T02:09:57Z")
Surely you have many objects that you can ascribe an emotional attachment to your mom with other than shares of stock. I would convert it to either a retirement target date fund or treasury bills. Or split it between the two. mmm ---
**Author:** ![romansperson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/romansperson/32/17100_2.png) [@romansperson](https://boards.straightdope.com/u/romansperson)\ **Post date:** [February 25, 2024, 2:46am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/15 "2024-02-25T02:46:38Z")
My grandmother gave me some stocks while she was still alive. Some merged with other companies and we took the cash from those because that’s what they offered. Others I still have - I’ve reinvested the dividends in those to buy more stock. They are worth a tidy sum today. If the company you are holding has a good history and a good future (obviously your financial person can offer advice regarding that), I’d suggest hanging on to it. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [February 25, 2024, 3:54am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/16 "2024-02-25T03:54:08Z")
I assumed that if stocks were in the estate, they’d have to be sold before the money was distributed to the heirs. Is that wrong? So instead, if the estate included, say, 1,000 Berkshire Hathaway shares, the two heirs might receive 500 each? ---
**Author:** ![Loach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/loach/32/350_2.png) [@Loach](https://boards.straightdope.com/u/Loach)\ **Post date:** [February 25, 2024, 4:01am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/17 "2024-02-25T04:01:55Z")
> [@OldOlds](#): > > Is there a reason you don’t want to name the company? Proctor and Gamble ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [February 25, 2024, 5:17am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/18 "2024-02-25T05:17:56Z")
> [@Loach](#): > > There are two reasons why a simple name transfer isn’t so simple. There were no named beneficiaries. It has to be disbursed as part of the estate. Also the stock was not traded electronically and was never transferred to a brokerage account. It’s still held by the company itself. - My company has to deal with this type of situation from beneficiary shareholders fairly regularly, as we still hold all the stock (no fun on my end). You probably want to use/consult an estate attorney to round up the wills and letters testamentary, as I assume it’s fairly routine for them. ---
**Author:** ![Loach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/loach/32/350_2.png) [@Loach](https://boards.straightdope.com/u/Loach)\ **Post date:** [February 25, 2024, 6:49am UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/19 "2024-02-25T06:49:21Z")
> [@needscoffee](#): > > > [@Loach](#): > > > > There are two reasons why a simple name transfer isn’t so simple. There were no named beneficiaries. It has to be disbursed as part of the estate. Also the stock was not traded electronically and was never transferred to a brokerage account. It’s still held by the company itself. - > > My company has to deal with this type of situation from beneficiary shareholders fairly regularly, as we still hold all the stock (no fun on my end). You probably want to use/consult an estate attorney to round up the wills and letters testamentary, as I assume it’s fairly routine for them. My sister is the executrix. That’s what she gets for being the oldest. Although there was a lot of frustration and runaround in the beginning it seems to be going smoothly now. ---
**Author:** ![OldOlds](https://avatars.discourse-cdn.com/v4/letter/o/a3d4f5/32.png) [@OldOlds](https://boards.straightdope.com/u/OldOlds)\ **Post date:** [February 25, 2024, 12:00pm UTC](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036/20 "2024-02-25T12:00:54Z")
So this is just me, in IMHO I would sell the stock and invest in whatever your normal instrument of choice is. For me, at 50, that would be an S&P 500 index fund. For you, in retirement, that might be S&P 500, or it might be a total bond fund, I don’t know. If you want to SPEND this money, then I’d get it into a Money Market where you can currently get 5% and keep liquid. P&G is a good company, and likely isn’t going anywhere. And their dividend yield is impressive, given that they’re at or near all time highs that’s especially impressive. But a money market is still giving you 1.5% more. I don’t know how old you are, but you said that you’re in retirement and this will help. So it makes me think this isn’t money you want to just hand along to your heirs. A single company is going to be more prone to a downturn, and a company like P&G will be especially susceptible to recessions and the like. You may be too old to outlive the next down cycle. [Next page](https://boards.straightdope.com/t/what-would-you-do-with-this-stock/998036.md?page=2)