Financial advisers are a funny lot: First they tell you to invest for the long term. Then, when you do what you were supposed to (hold), and the investments do what they were supposed to do (grow), they berate you for taking on too much risk with your star investment!
There is no question that as many fortunes have been made from concentrated ownership as have been lost. So how do you balance the risks with the opportunity?
Remember that the goal is to protect your portfolio from the higher risk inherent in a concentrated holding. Diversification is certainly the most common method of managing risk, but it's not the only one. Nor is it always the lowest cost strategy, when taxes and opportunity costs are considered.
If you need a less common approach, please contact us.
Old Field Advisors can evaluate alternative risk and tax reduction strategies for your concentrated or low cost basis assets and execute customized plans.