The Investing for Beginners Podcast - Your Path to Financial Freedom cover image

Brian Feroldi Discusses the Importance of Earnings + Much More

The Investing for Beginners Podcast - Your Path to Financial Freedom

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Is There an Upper Limit to Position Sizes?

Is there an upper limit to how concentrated you would let a position get or if MasterCard becomes like 60% of your portfolio without making a nervous at all? That's what you call high quality problem if that was to happen. I could personally get comfortable with MasterCard being something like 15 or even 20% of my portfolio if it grew into that number. Conversely, if I took a 1% position in a really small dynamic, fast growing, super risky company, I got lucky in that company like 20 bagged over the course of a year. So I would be more willing to trim that and keep that abound at like 10% or so.

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