Ep 404: How to deal with investment concentration risk
About this episode
Stuart discusses investment concentration risk and introduces a three-step framework to assess it.
In this episode, Stuart breaks down what concentration risk really means and why it is not just about returns, but dependence. From large shareholdings to property and business exposure, he explains how having too much tied to a single asset can increase risk unless it is properly understood in the context of your broader strategy. Stuart introduces a practical three-step framework to assess concentration risk: evaluating future returns and opportunity cost, testing how dependent your financi...
People in this episode
Hosts: Stuart Wemyss, Campbell Wallace
Topics covered
- investment concentration risk
- financial strategy
- asset dependence
- risk management
- investment returns
Keywords
- concentration risk
- investment strategy
- asset exposure
- financial dependence
- risk assessment
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