Buy Hold Rant

Concentrated Portfolios Explained — Maximize Returns Without Over-Diversifying

Name: Concentrated Portfolios Explained — Maximize Returns Without Over-Diversifying
Uploaded: 2025-10-30T19:23:35Z
Description: When is it a good time to rebalance your portfolio and why is it a good idea to trim high-performing stocks instead of buying more? In this clip from the Buy Hold Rant podcast, host Hamid Shojaee describes his practical strategies for portfolio rebalancing and managing concentrated investments witho

10/30/2025, 7:23:35 PM

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Economic Summary

Rebalancing approach is discretionary rather than formulaic: the speaker trims positions when they appear overvalued or exceed expected prices, reducing exposure rather than dollar-cost averaging into momentum names (mentions HOOD and RKLB as trimmed examples).
Concentration strategy depends on personal cashflow: if the speaker had outside income they'd concentrate in two or three high-conviction names; currently they hold six or seven positions because investments are their primary net worth source.
Portfolio risk management: individual positions reaching roughly 30% of the portfolio create nervousness and trigger trimming to lower single-stock risk (observed with Robinhood and Rocket Lab).

Bullish

Accumulating Rivian (RIVN) for long-term growth.
Maintains long-term conviction in Robinhood (HOOD) and Rocket Lab (RKLB) despite trimming.
Prefers concentrated bets when not reliant on investment income.

Bearish

Trim positions when a stock becomes overvalued or exceeds expected price.
Single-stock concentration risk when a holding rises above ~30% of portfolio.
Avoid adding to names that have already run up in price to limit downside.

Bullish tickers

RIVNTHUMBLEHOODRKLB

Bearish tickers

HOODRKLB

HOOD

Bullish

Still loved and seen as having a bright future and potential to continue growing.

Bearish

Trimmed as it reached a large share of the portfolio and appeared higher priced, increasing downside risk.

RKLB

Bullish

Believed to have a bright future and continued growth despite recent trimming.

Bearish

Trimmed after strong appreciation and when it became a large portfolio position, reducing concentration risk.

RIVN

3 price targets

506080

Bullish

Actively accumulating shares as a long-term, high-conviction holding.

Bearish

Would trim or unload if the share price reaches expected future levels (e.g., $50–$80).

THUMBLE

Bullish

Accumulating shares alongside Rivian as a long-term position.