Nvidia's billionaire CEO sold over $700M of the company's stock after his net worth took a big hit this year — here's how to help protect your portfolio against market swings in 2025

His journey began humbly, working as a dishwasher at Denny's, where he often had to clean toilets.

Today, his company boasts a market capitalization of $3.21 trillion, and Huang is ranked as the 10th richest person in the U.S.. He is also, according to the New York Times, set to pass on his $127 billion fortune to his heirs almost completely tax-free.

Portfolios fueled by market research

In 2024, Huang sold over $700 million of his NVIDIA (NVDA) stock but he still remains the majority stakeholder. Yahoo Finance reported that while this was a planned move on the CEO's part, it has been happening at a faster rate than experts expected.

But buying and selling single stocks, as history has shown, is not for the faint of heart. Investing legend Warren Buffett once said, “I do not think the average person can pick stocks.”

If you’d like to follow the advice of the Oracle of Omaha or follow Huang's example and bypass index trading, there are other trading platforms with low barriers to entry — and that offer the kind of in-depth market insights that will help you feel better about the names you put in your portfolio.

The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock and crypto reports to keep you up-to-date on what’s moving the markets.

Moby’s superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12%, on average.

With their easy-to-understand formats, you can become a wiser investor in just five minutes, backed by a 30-day money-back guarantee.

Once you’ve leveled up your stock expertise, it’s time to check out new investment platforms to ensure you’re getting great value and support when making trades.

Fluctuating billions

Huang's net worth is largely tied to his holdings in Nvidia shares and has thus dramatically fluctuated with the company's stock price.

While it did surge from $13.8 billion at the end of 2022 to a peak of $119 billion in June 2024, it has since plummeted back down to $92.1 billion as of mid-August, as Nvidia shares fell, representing a $26.9 billion loss in just two months.

You may not be the founder and CEO of one of the world’s most influential companies, but for the average investor, diversifying a portfolio can help mitigate risks and protect assets from the wild market swings.

To that end, you have several options that will keep you from letting the fate of your nest egg hinge on the success of a single mega-cap stock.

Just ask Warren Buffett: the Oracle of Omaha himself has long advocated for low-cost index funds, particularly those tracking the benchmark S&P 500 Index.

By investing in an S&P 500 Index fund, an investor gains exposure to a broad range of large-cap U.S. companies, providing diversified holdings across various sectors of the economy. This means that if one stock tumbles, the impact on the overall portfolio will be limited.

There are quite a few options available, including exchange traded funds such as the Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY). Investors can also consider sector-specific ETFs for targeted exposure to particular sectors.

If you want expert advice on investing, consider consulting a financial advisor who can help assess how you’re doing so far and make sure you've got the right portfolio to meet your goals on time through Vanguard.

Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.

Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.

Real estate as an alternative to the stock market

According to a recent survey from Bank of America, individuals aged 21 to 43 with at least $3 million in assets only have 25% of their portfolio invested in stocks — compared to 55% for wealthy investors aged above 43.

Roughly 31% of younger people said real estate presents the greatest opportunities for growth.

Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets.