Diversifying Concentrated Positions Without a Massive Tax Bill

Jan 5, 2024

We all know that there is a significant risk in putting all eggs in one basket, this is more so in investments where you have built a concentrated position because of your employment over the years or an exit etc.

Although nothing bad may not happen, but it could! If so, it will seriously damage your lifestyle.

That is why it is wise to diversify. However not just diversify, unlike current offering such as exchange funds that diversifies into indexes with average returns, diversification should be from concentrated position to other stocks of equal or higher quality capital appreciation potential.

However selling the position may come with massive tax bill, which is probably what has been preventing you from rotating out in addition your investable principal significantly reduces. 

There is a way out - DisruptiveSecularGrowth has strategy to solve this problem:

Diversifying concentrated position to high quality securities without a massive tax bill.