Every concentrated-stock client I meet says the same thing: “My stock is different.”
This is the range of outcomes for some of their stocks this year:
- Best: +122%
- Worst: –58%
- Everything else scattered in between
Here’s the uncomfortable truth:
Over long periods, the most common outcome for an individual stock is eventually going to zero.
The line “over decades, markets always go up” does not apply to a highly volatile, concentrated position. The risk of permanent wealth destruction is simply too high.
In quant‑speak:
- The market’s wealth distribution is skewed by the winners
- But the wealth distribution of one high‑volatility stock tends to drift toward zero the longer you hold it
What if you could:
- Diversify out of that concentrated position
- Without triggering a massive tax bill
- And rebalance into a portfolio where the odds are actually tilted in your favor?
That’s exactly what tax‑aware long/short and other tools are designed to do.
If you’re sitting on a concentrated position and are finally ready to accept the math, and want to see how we can diversify it as tax‑efficiently as possible, the easiest way to explore it is a brief call – the link is in my profile.