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

More episodes of Investopoly

• Ep 412: Beware: Commercial property values look stretched · June 9, 2026 · 33 min
• Q&A - Listener scenarios unpacked: Perth timing, seven properties and no shares, and a retirement direction check · June 8, 2026 · 32 min
• Ep 411: Should you invest all your super into an internally geared ETF · June 2, 2026 · 32 min
• Q&A - Property vs Shares: retirement sequencing, and the cash-waiting strategy · June 1, 2026 · 34 min
• Ep 410: What Charlie Munger's investing checklist means for Australian investors · May 26, 2026 · 33 min
• Q&A - Starting out, scaling up, and knowing when to sell · May 25, 2026 · 34 min