CRM down ~25% YTD: Why RSU diversification is often more about behavior than “best strategy”
I'll be honest with you—watching Salesforce (CRM) drop from $253.62 to $188.37 between January 2nd and February 6th (a brutal 25.7% slide) reminded me why I do this work.
It wasn't about predicting the drop. It was about the conversations I had with two clients—both holding significant CRM RSUs—and how differently those stories played out.
The conversation that didn't happen (yet)
Let me tell you about the first client. Let's call him Mark.
Mark has a big chunk of his net worth tied up in CRM. We sat down last year, and I walked him through a structured diversification plan. I even showed him how direct indexing could help make it more tax-efficient. The numbers made sense. The strategy was solid.
But you know what he said?
"It looks good... but I don't want to."
And that was that. We haven't moved forward. The strategy wasn't the problem—the emotional readiness was. Sometimes my job isn't about having the right answer. It's about knowing when someone isn't ready to hear it yet.
The conversation that changed everything
Now let me tell you about Sarah (not her real name).
Sarah also held a concentrated CRM position—in a self-directed account she managed herself. I gently suggested selling down gradually. Nothing happened. Months went by.
Then one day, I asked her directly: "Is this emotional? Is it because this was your employer's stock—part of your identity there?"
She paused. "Yes."
That one word unlocked everything.
We moved the position into my managed account. We wrote down a plan together—specific, dated, deliberate. And by the end of 2025, we had sold roughly 80% of that concentrated position according to that exact plan.
Here's what struck me: I didn't predict that CRM would drop 25% in early 2026. But I did help Sarah separate her career story from her investment strategy—and that made all the difference.
Why RSU concentration sneaks up on all of us
If you've ever held RSUs from your employer, you know this feeling. It's not just stock—it's tied to:
Your identity ("This company changed my life")
Your paycheck (human capital + stock = double exposure)
Inertia (taxes, paperwork, "maybe I'll do it next quarter")
When the stock is climbing? Concentration feels like winning. When it drops 25% in five weeks? It feels like losing control.
What direct indexing actually does (and why I bring it up)
Look, direct indexing isn't some silver bullet. But when a client is stuck between "I know I should diversify" and "I can't pull the trigger," it gives us a structured way forward:
✅ Reduce single-stock risk systematically (not all at once)
✅ Stay invested in the market (we're not going to cash)
✅ Potentially harvest tax losses along the way (making the transition smoother)
It's not about being clever. It's about creating a process that removes the paralysis.
What I've learned
Here's my takeaway:
RSU diversification is rarely about finding the "optimal" strategy. It's about helping someone move from knowing what they should do to actually doing it.
Mark isn't ready yet. Sarah was. And that 25% drop in CRM? It's a reminder that the best time to diversify is before you need to—not after.
If you're reading this and thinking about your own concentrated position—whether it's CRM, NVDA, MSFT, MSTR or anything else—ask yourself:
Am I waiting for the "right time"... or am I just waiting?
Want to talk through your RSU situation? I'm here for a no-pressure conversation about what makes sense for your specific situation.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment, tax, legal, or insurance advice. Any strategies discussed may not be suitable for every individual and may involve risks, including the possible loss of principal. Please consult your financial advisor, tax professional, and/or attorney regarding your specific situation before making any financial decisions. Past performance is not indicative of future results.
