What would have to happen for you to put 100% of your portfolio into 1 position?

[giofranchi]

If I had the opportunity to buy a private business that I like a lot, I would gladly sell my whole stock portfolio. Stock portfolio that I would start rebuilding again with a much larger free cash flow than the one I have at my disposal today.

 

Cheers,

 

Gio

 

[oddballstocks]

I would put 100% of my portfolio in my own business to invest for growth.  That's the only situation I can imagine, putting your wealth into something you control.

 

This isn't that crazy of a question.  Most Americans have 100% of their wealth and more in their house.  Or a combination of their house and some cars.

[rkbabang]

If I had put 100% into one position I'd either have been fabulously wealthy, dirt poor, or earned around market returns, depending on what that one position was.  For instance I first bought NFLX at $11, had I put everything into it, sold my house and put everything into it, then borrowed money to put even more into it, and held until today I would have done very well.

 

[premfan]

It depends how much of your net worth is in stocks.  As an example if 20 percent of my net worth is in the market I would put 100 percent in a stock all factors considering. The other 80 percent which includes real estate and other alternatives would serve as a buffer. If all my net worth is in the market or 80 percent or so I would never put 100 percent in a stock.

 

 

[wachtwoord]

This isn't that crazy of a question.  Most Americans have 100% of their wealth and more in their house.  Or a combination of their house and some cars.

 

The same is true here, and I consider that very crazy.

[petec]

I could not see myself doing this because there's just too much chance of being wrong.

 

Unless, of course, someone actually offered to sell me dollar bills for 10c.  Then I'd happily put 100% in :)

[Pelagic]

I guess it boils down to margin of safety. Find a position where it's heads I really win a lot and tails I can liquidate the company and get my money back and then some and I could see going all in. As just a common shareholder with someone else at the helm of the company though, it's a lot tougher. A 100% investment in a company's debt might be an interesting proposition however if it was cheap enough.

[james22]

But just answering the posed question: nothing has yet happened that would put me 100% into 1 position, including the long-while BRK opportunity. Only something like the short-lived example would.

 

The long-lived exception: if wealth was such that risk or return didn't matter, could go 100% BRK/SV index fund or inflation-adjusted annuity/treasuries.

[Shawn]

If I found a company I could acquire whole and run myself (or with mgmt I like) I'd have no problem doing that. I always believed that size of allocation was a very important factor in investing that's severely underrated.

 

I can't name 1 particular company but I wouldn't have a problem if someone came to me and with some of the Dow components at discounts and told me I'd have to keep all my money in one of them forever. I wouldn't be mad having my entire networth in either Walmart, ExxonMobil, Apple, Coke, Proctor and Gamble, or American Express.

 

I can understand why a trader wouldn't do that but as a businessman I'd have no qualms doing it if it was a business I could acquire and run and had some knowledge of it's industry or was passionate enough to learn.