Lose Your Concentration: How To Protect Yourself from Single Stock Risk

The emotional and financial benefits of diversifying out of a hefty single stock position.

If a single stock makes up 10% or more of your investment portfolio, or if a major decline in the value of one stock will significantly impact your financial plan, you have a concentrated stock position.

A concentration in one stock in itself is not a bad thing – in fact, you may owe a significant portion of your wealth thanks to it! But now that your wealth has been built, we recommend diversifying out of hefty single stock positions for a few crucial reasons.

Read the full article at BrightPlan.