Steve from Greensboro, North Carolina, called into “The Ramsey Show” with a $5.4 million net worth but 34% tied up in a single stock, facing a hefty capital gains tax if sold.

Ramsey advised Steve to diversify for safety, pointing out he could realize up to $400,000 in gains and stay in the 15% federal capital gains bracket.

Ramsey cautioned against holding individual stocks long-term, citing examples like Enron and Tesla’s volatility as potential risks to Steve’s portfolio.

Read more at Yahoo Finance: ‘I Don’t Buy Single Stocks,’ Says Dave Ramsey. One Stupid Decision And You Could End Up With A Bud Light, Tesla, Or Cracker Barrel Moment