adesigar

I don't get why weightings is complicated. Out of 100% of your portfolio how much are you allocating for each security? What has weighting of security in a portfolio got to do with capital at risk? From your example. I can have 10% in SHLD and 10% in BAC and that's my weighting. You can have 10% in SHLD/BAC + Puts at 26% or 10% of strike so your weighting is 12.6% for SHLD and 11% for BAC. My risk for both is I can lose 100% and your risk is you lose 26% and 11% so what. The question asked by the person who started this thread was "How you weight your holdings" ? 1. Equal weight like Mohnish Pabrai 2. Weight by relative Value or upside like Bruce Berkowitz 3. Weight by sector

My weighting is based on 1. What is the downside protection. 2. What I feel is the upside. I stay highly concentrated currently top 5 holdings are 92% of portfolio. Cant keep track of too many things. Current weighing is 27%, 26%, 20%, 11% & 9%.

Well if you have a lease on the store. You need to pay the lease till it expires. The annual loss from the store may be same as or less than the annual lease payment. Just a guess.