Maximizing Portfolio Growth: Embracing Concentrated Positions

The Bottom Line:

• Avoid the fallacy of constantly rebalancing your portfolio to maintain set percentage allocations
• Let your winners run and compound your gains, rather than trimming positions to maintain balance
• Focus on the total dollar amount invested, not the percentage allocation, when adding to positions
• Build a diversified portfolio over time, but don’t be afraid to let your highest-conviction stocks dominate
• Patience and a long-term mindset are key to maximizing the growth of your portfolio

Avoid the Fallacy of Constant Rebalancing

Let Your Winners Compound Your Gains

Focus on Total Dollar Investment, Not Percentages

Build a Diversified Portfolio, But Let Top Stocks Dominate

Patience and Long-Term Mindset Are Key