Investors often hold on to concentrated stock positions due to tax implications, loyalty and continued involvement. Reviews the risks of a concentrated portfolio without any compensating benefit and examines the balancing of risk and opportunity by selling at least part of the concentrated position and investing the proceeds in a diversified portfolio.
Topics & Details
- Tags - Bernard Baruch, Harry Merkowitz, Journal of Finance, Modern Portfolio Theory
- Categories - Capital Gains Taxes, Concentrated Portfolios, Diversified Portfolio, Insider Trading Rules, Investing, Notes, Portfolio Management, Risk Tolerance, Tax Reduction
- Download the PDF: - "What to do with a Concentrated Portfolio"
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