Is it worth rotating between the Magnificent 7, or is it better to just never sell?
u/Rmunu-12gmunu ·
Reddit — r/ValueInvesting
· August 11, 2026 at 16:13
· ⬆ 15 pts
· 💬 28 comments
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AI Summary
Summary
Post asks whether investors should rotate Mag 7 winners into undervalued Mag 7 names or simply hold long-term.
Author is up ~80% on GOOG and ~40% on MSFT, and leans toward holding winners to preserve compounding.
This is more of an investing-strategy question than well-researched DD; no deep valuation analysis is provided.
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Let’s say you own several Mag 7 stocks and one of them has gone up significantly, leaving you with a 30%+ unrealized gain.
At the same time, another Mag 7 company has dropped considerably and you believe it has become undervalued relative to the others.
Would it make sense to sell some of the stock that has performed well and rotate that money into the one that looks undervalued?
Or, assuming you have a long-term horizon, is it generally better to simply hold your positions and avoid trying to rotate between them?
Right now I’m up around 80% on GOOG and 40% on MSFT, which is what makes me question whether rotating into another undervalued Mag 7 stock would actually be worth it or whether I should simply let the winners run. My thinking is that once a position reaches a 100% gain, it only needs to rise another 50% from that point for my original investment to reach 3x, and the percentage increase required to add another multiple of my initial investment keeps getting smaller as the position grows. So I’m wondering whether giving up that accumulated position to rotate into something cheaper actually makes sense, assuming I still believe in GOOG and MSFT long term.
I’m curious whether anyone here follows this kind of strategy with the Mag 7 and how it has worked out compared with simply buying and holding.
Thanks!
Author is up ~40% on MSFT and still believes in the company long term. The author’s math shows that holding a growing position requires increasingly smaller percentage gains to compound wealth. MSFT is better held than sold to chase an unidentified undervalued Mag 7 name. Another Mag 7 stock may genuinely be undervalued and could outperform MSFT; concentration risk also remains.
Author is up ~80% on GOOG and still believes in it long term. The post questions whether selling a compounding winner to rotate is worth it; holding avoids taxes and preserves upside. GOOGL remains a long-term hold rather than a rotation candidate. If GOOGL fundamentals deteriorate or valuation becomes extreme, holding winners could give back gains.
This Reddit post, published August 11, 2026,
features u/Rmunu-12gmunu
discussing MSFT, GOOGL.
2 trade ideas extracted by AI with direction and confidence scoring.