Plan, Invest, Live…#6 Too much of one stock? A case study… A client recently came to me with their investments, and unfortunately too much of it was in one stock. Yikes! I asked and was granted permission to share the story so that others could learn from this. Obviously, I’ll leave out the names for privacy. There are two lessons we’ll get to from this situation. Here’s a quick definition that you should get to know. The phrase is “concentrated position”, and it has nothing to do with juice! When someone has a stock that dominates the portfolio risk and return, we call this a “concentrated position” in the financial planning industry. This means the portfolio is not much of a portfolio. The “portfolio” is really going to behave just like that one stock. If the price goes up, that’s great, you’ll likely benefit from that move in the stock…
