Concentration is a Choice
I actually like looking at concentrated portfolios.
Not because concentration is automatically good or bad.
But because it forces you to ask a better question:
“What am I really betting on?”
Take a portfolio with large positions in companies like SanDisk and Micron.
On paper, that's two different stocks.
But underneath it, there may be one much bigger bet:
AI infrastructure and the demand for memory.
That's where portfolio construction gets interesting.
You might own 10 different companies and still have most of your money exposed to the same economic theme.
AI.
Interest rates.
Consumer spending.
Crypto.
Energy.
Whatever it may be.
So I don't just count the number of stocks in a portfolio anymore.
I try to count the independent risks.
Because owning 10 stocks doesn't necessarily mean you're diversified.
Sometimes you're just making the same bet 10 different ways.
